Foreign Government Investment May Stabilize the Value of Crypto Currencies
Scroll DownGovernments around the world - at least governments that are worth their salt, as the saying goes - are inherently interested in the well-being of their constituents. This by-and-large fact of life - like everything, it does have a few exceptions - especially holds true for corporate activities and investments in all financial instruments, including bonds, stocks, commodities, exchange-traded funds, real estate, and everything else people invest in. The United States' leading regulatory agency regarding such activity is the Securities and Exchange Commission. Right-minded governments across the globe have expressed much concern over the legitimacy, nature, and trade of cryptocurrencies and other digital currencies. Park Sang-Ki, current Attorney General of South Korea, announced in early January 2018 that South Korea would soon outlaw any trade of cryptocurrencies by its citizens, residents, and businesses, as well as crypto exchanges physically located in the country. Just weeks after South Korean officials made such announcements, the democratic government of the Korean Peninsula's southernmost nation publicly switched its collective mind by announcing cryptocurrencies would not, in fact, be punished by South Korean law. Although the initial announcement and later reconciliation of its views had a negative impact on cryptocurrency prices across the proverbial board, recent news suggests that South Korea could effectively be boosting cryptocurrencies' prices and lowering their volatility - in other words, South Korea could very well prove itself to be invested in cryptocurrency exchange, investment, and research - through a friendly, collaborative joining of forces between Korea University, a flagstaff public South Korean university, and Huobi, a crypto exchange located and doing business within the nation's borders. The South Korean government is in support of the collaboration. Such cooperation will facilitate a greater-than-current volume of high-quality research regarding cryptocurrencies, current events, consumer behavior, and interactions between them. According to Kim Hyung-Jung, a professor at Korea University's Graduate School of Information Security, the school's relevant, involved faculty members have high hopes that such collaboration will result in not only "[the ability] to conduct empirical research ... on academic aspects of blockchains, but also on realistic applications" relevant to practice.
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