April 6th, 2018
The world of Bitcoin is full of wild ups and downs. Many countries around the world are starting to enforce strict regulations to cut down the use of Bitcoins for all illegal purposes. Recently, South Korea is preparing to ban trading of virtual currencies, thus creating concerns among many digital currency users. People now are asking if Bitcoin can be shut down? The answer to that question is very complicated. Currently, the best answer is no. The Cryptocurrency task force put a statement out saying that there are no plans of shutting down Bitcoin. Nevertheless, the Bitcoin market is shaken up by this news. South Korea is one of the most popular locations where Bitcoin exchanges take place-it processes around hundreds of millions of dollars every day. Trades using South Korean currency Won account for almost 5% of global Bitcoin volume.
Regulators Grow Cautious
The South Korean Government is the latest to voice its concerns about cryptocurrencies and they are even considering to ban all Bitcoin trading, South Korea is not the only country looking to do this. Regulators from around the world have started to grapple with the challenges that have been presented by virtual currencies which mostly bypasses financial firms, as well as,regulated banks, central clearinghouses and exchanges.
The Chinese Government is also taking a strong stance against Cryptocurrencies. China, after banning initial coin offerings or ICOs is now planning to go after Bitcoin miners. Currently, China is holding the majority of Bitcoin mining power because of is subsidized and cheap electricity.
In the United States, there have been attempts by the Securities and Exchange Commission to regulate the use of cryptocurrencies. Recently the SEC sent out a flurry of notifications on this subject, including some strong statements against Bitcoin trading by SEC chairman.
In India, the RBI or Reserve Bank of India has periodically reiterated their concerns over the use of Bitcoins since 2013. RBI has produced statements for its holders, users and traders on the risks involved with digital currencies and also clarified that no authorization and license have been issued to any company or entity to operate on such deals or schemes. Even though such statements are making news all around the country, Bitcoin is still not considered illegal in India. It’s only the lack of a regulatory framework that is making the whole Bitcoin concept unclear.
The Legality Is Unclear
Many countries, such as Japan, have taken a progressive approach to cryptocurrencies by allowing and embracing its use as legal tender, some governments around the world have grown wary about this concept. They are trying to ban or even shut down Bitcoin or use of cryptocurrencies in general.
Will Bitcoin Shut Down?
Some regulators are wary of these digital currencies and Bitcoin users are fearful that it may be shut down totally. Though it is a valid concern, it is extremely unlikely that a Bitcoin shutdown would come to pass. Most regulatory bodies and governments seem to lack understanding of such technological topics in general and Bitcoin in particular. There are various key components to cryptocurrencies and Bitcoin that makes it successful as a form of transactions. These digital currencies are easy to transfer, anonymous, involve no middle-man and are reliable. All these seemingly good features can cause real issues for any authority or governments wanting greater control over its citizens. The clear challenge – Bitcoin is decentralized.
Bitcoin is not linked to any financial institution or territory. There is no central point of focus for shutting Bitcoin down. Without having any central point of focus, a meaningful “crackdown” would be a global endeavor. Even if few countries were successful to prevent Bitcoin transactions, proxy servers and VPNs would allow users to operate internationally without any hassle. Governments around the world have started embracing the Blockchain technology and it’s very unlikely that Bitcoin will shut down as it is based on the same technology.
The cryptocurrency world is constantly evolving, new developments in the technical space are coming from all directions. Global crypto experts are on a mission to keep individuals on top of these types of developments that are taking place from the world of crypto. For now, you can keep enjoying Bitcoin.