According to the South Korean PM teenagers could be negatively affected by the recent surge in bitcoin prices. In a statement he said “There are cases in which young Koreans including students are jumping in to make quick money and virtual currencies are used in illegal activities like drug dealing or multi-level marketing for frauds.” This leads us to wonder is bitcoin causing crime in young people or are these claims made by South Koreas government unfounded?
Lee Nak-yeon has expressed his main concern being the fact teenagers are using their bitcoin to undertake pyramid schemes and become involved in drug crimes. Despite no statistics being available at the moment many teenagers in South Korea made small fortunes from the crypto currency surge and are now wondering what to do with said funds.
Despite being at the forefront of cryptocurrency, South Korea has banned the initial coin offerings (ICOs) along with China. Both countries branded cryptocurrencies at Ponzi Schemes and have clearly stated disapproval of virtual currencies.
Cryptocurrencies such as Bitcoin, Litecoin and Dogecoin have had a long history with government entities – mainly due to the illegal activities which comes with anonymous money. Wether it be bitcoin money laundering or the exchanging of illicit goods some governments have taken a liking to the coin less than others and this is a huge reason why the future of the currency is so uncertain.
Despite South Korea’s rocky history with cryptocurrency, it has not deterred traders from exchanging the coins 24/7. Bitcoin mining and Dogecoin mining is not slowing according to enthusiasts despite government concern.
South Korea is currently leading the cryptocurrency exchange volume with over $2 billion USD traded in the last 24 hours. With stats like this it’s easy to see that South Korea is big on BTC.
Compared to many other countries in Asia, S-Korea has a low crime rate and to ensure the crime rate stays low, the PM has requested the BTC market stays watched closely by the Ministry Of Justice.
“Is Bitcoin Causing Crime Or Are Governments Overreacting?”
The South Korean Prime Minister continued by saying “This can lead to serious distortion or social pathological phenomena if left unaddressed.” He urged government agencies to put protective measures in place so young people do not partake in illegal activity with their cryptocurrency earnings.
In its infancy Bitcoin was titled the digital era’s “blood diamond” because of the criminal activity which was associated with the currency. Silk Road was arguably the biggest site utilising bitcoin for controversial transactions. This lead Bitcoin to be known as the currency of criminals. Although in later years BTC has gained traction from various celebrities and large brands, which seems to have swayed opinion on the currency.
But does bitcoin causing crime or it a byproduct of crime which will happen regardless of the cryptocurrency?
Read our guide on Bitcoin Mining and How To Earn Free Bitcoin.