Governments’ attitudes towards cryptocurrency — Part 2.

Governments’ attitudes towards cryptocurrency — Part 2.
II. The neutralists
While countries promoting cryptocurrencies seem to be a paradise for Bitcoin enthusiasts, the neutral nations may disappoint those people a little bit because of their vague attitudes towards virtual currencies as they neither really prohibit nor fully accept this digital medium of exchange. In this group, UK and South Korea are the most outstanding examples. 
In the current context, South Korea has been very cautious on cryptocurrencies. In fact, digital currency is not recognized as a form of legal tender and the government denied promulgating law for this currency circulation. However, on perceiving popularity of cryptocurrencies in recent years among South Korean investors for quick benefit regardless of certain risks South Korea reluctantly allows cryptocurrencies, stated the spokesman of South Korea government. Although any action of law promulgation on cryptocurrencies at this time would be seen as the government’s official approval, risks must be checked to protect the domestic market. Therefore, South Korea has adopted legal frames and trends established by other leading governments, which is a solution of “killing two birds with one stone.” On 2 January 2018, the Yonhap News reported South Korea’s prohibition of anonymous crypto transaction that: “Under the measure, only real-name bank accounts and matching accounts at cryptocurrency exchanges can be used for deposits and withdrawals, while the issuance of new virtual accounts to cryptocurrency exchanges will be banned.” 
Nearly 9000 miles westward of South Korea, the “Fintech hub of Europe” — UK also implements stricter regulations and impractical policies on cryptocurrency services, unlike Germany, but does not recognize digital currencies as a medium of exchange. In other words, though UK doesn’t negate cryptocurrencies, the virtual coins remain a kind of merchandise . According to The Library of Congress website, ‘Her Majesty’s Revenue and Customs has classed bitcoins as ‘single purpose vouchers,’ rendering any sales of them liable to a value-added tax of 10–20%.’ Stricter regulations of the UK along with the effects of Brexit seemingly pose a gloomy future on Cryptocurrencies as these events raise the uncertainty and FUD of investors. As the consequence, cryptocurrency service giants or platforms have withdrawn from the UK Bitcoin market, leaving a big lack of developers, talents, and businesses in fintech sector of UK. Many of the leading cryptocurrency trading platforms operating in Europe such as Kraken are based in other regions such as the US and other promising land of Bitcoins. Excessive regulations will only restrict the local market, harming the long-term future of the UK’s cryptocurrency sector.
Causes leading to such decisions of nations in this Part vary,Nexty would like to discuss the third group of this trend first before coming back to the causes in this part. Please follow our channels for Part 3: Governments’ attitudes towards cryptocurrency — the protesters.