By Guest Author
Countries of Asia Pacific have become increasingly uneasy with the rise of digital currencies such as Bitcoin,Ethereum and Litecoin etc.The latest news has come from the Bank of Japan Governor Haruhiko Kuroda, who called the surge cryptocurrency prices “abnormal” at a media conference on Thursday.His comments gave warnings as his counterparts in major nations has echoed the same concern in the region,including Australia,India, South Korea and Singapore.
CAUSE OF CONCERN
Their worries are due to Sharp volatility in the price of Bitcoin as different reasons of Asian market accounts for the bulk of trading in bitcoin. They think as prices of Bitcoin have been extremely volatile so Investing in cryptocurrencies involves very high risk. Many experts are sceptical about Bitcoin as an investment because there is nothing for them to analyse as there isn’t enough of an ecosystem surrounding bitcoins to allow fundamental analysts to study it as an investment. People are therefore investing with imperfect information and joining the herd of speculators which later cause a sharp fall of price.
Till date, the government of concern countries has not made any law to regulate Bitcoin “There is no authority like central bank that citizen can approach for grievance redressal. if we face illegal issues in a bitcoin transaction, it is impossible to get the money back.If it happens to many citizens the Gross domestic product (GDP) of these countries will be affected and it is difficult to recover for government.
As asian countries are prone to, terrorists and extortionists activities,so antisocial elements also can use the cryptocurrency for their advantage. “Bitcoins users on either end of a transaction can remain relatively anonymous and cybercriminals have found ways to hide their identities, so it can be difficult for t authorities and companies to trace such illegal activities and it will create another load to the government.
WHAT OTHER COUNTRIES SAYS ABOUT BITCOIN?
South Korea has banned dealing in cryptocurrencies, including buying, possessing or holding them as collateral. ICOs will also be outlawed, the Prime Minister’s Office said in a statement earlier this month.
Reserve Bank of Australia’s governor Philip Lowe called the cryptocurrencies are a “speculative mania” and added that bitcoin is more likely to be attractive to those transacting in the illegal economy, than consumers.
Grant Spencer, acting governor of the Reserve Bank of New Zealand said the price movements in bitcoin are very volatile and a “classic case” of a bubble.
As we see Asia Pacific economies have been less welcoming of cryptocurrencies, with many authorities issuing some of the strongest warnings. We provides an overview in this article of what some regulators have said and how Bitcoin’s price has risen by more than 1,500 percent this year.But the concern is that Prices also have decreased from their peak, and there are fears that a deeper plunge may reverberate around financial markets.