Korea’s Supreme Court claims Crypto has Economic Value

South Korean Supreme court`s decision about the cryptocurrency value might be the backdoor to unraveling the regulatory boondoggle over custody
01 June 2018   1554

The case regards a pornographer captured on charges of breaking the Protection of Children and Juveniles From Sexual Abuse Law in May 2017. The accusations that  go back as far as 2013 declare that the man identified only as Ahn had apportioned 235,000 indecent pictures online and made 1.9 billion profits from users of the site. During his arrest, 216 Bitcoin kept in a digital wallet was seized that the prosecution described as assets that were made illegally.

First, a lower court decided against the seizure affirming that “bitcoins only existed electronically and had no physical form.” Then the case was appealed by the prosecutor  in a higher court which “ruled in the prosecution’s favor, saying the cyber assets could be seen as profit earned from the trade in goods.”

The Supreme Court maintained this order and also added that the decision “will allow any cyber assets gained from illegal activity such as gambling, drug deals, pornography and prostitution to be confiscated.” The Supreme courts answer might be obvious in some ways, though it can also be the start for solving regulatory questions government services all over the world have been struggling with.

Cryptocurrency is “an asset with economic value”, there is no arguing with that.  Also the motivation for the ruling is obvious. Currently that the precedent has been stated it has to be no surprise that cybercriminals are sought out more actively.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   308

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.