As South Korea continues to shape its policies on cryptocurrencies, a large number of investors and onlookers are watching with interest. Obviously, South Korea is as important a cryptocurrency market as any other in the world, so the way in which they define their regulations moving forward will have a massive impact on the market.
According to a report by Bloomberg , South Korea’s national postal service is set to meet with executives from Goldman Sachs to “gain know-how” on the pros and cons of cryptocurrencies. The announcement came on September 5th, when it was revealed that the National Postal Service Korea Post (also known as Korea Post) will be learning more about virtual currencies from Goldman Sachs Group Inc.
South Korea’s Harsh Stance on Crypto
This comes at a time when the cryptocurrency market is in the midst of a prolonged bear market, especially after the Korean government warned of virtual currencies being a possible threat to the nation’s youth.
Korea Post President Kang Soeng-Ju has already mentioned to Bloomberg in an interview that he has held discussions with the incoming CEO of Goldman Sachs (David Solomon) in a meeting in New York. The firm are set to help Korea Post study digital assets, artificial intelligence and Blockchain.
I asked Goldman to pass on their know-how in the cryptocurrency area.
Kang said in an interview that “Since cryptocurrencies are considered to have potential, and are something many people are watching, we’ll need to learn the strengths and weaknesses.”
South Korea Admits Popularity of Crypto
He further admitted that since virtual currencies are gaining traction with a good number of investors watching the space and that Korea Post will, “need to learn the strengths and weaknesses”
For most crypto enthusiasts, the move is somewhat odd considering Goldman’s scheduled plan to offer digital currency trading products. As expected, the crypto market underwent a temporary dip, with Bitcoin losing over $400 in a matter of minutes, as soon as Goldman Sachs had announced their new crypto trading products.
KP Has No Intention of Investing in Crypto
Bloomberg, however, confirmed that KP has no intention of investing in crypto, mentioning that their main agenda is to learn what the nascent industry entails.
South Korea was one of the major locations that fuelled the crypto mania which saw the rise of a bull market at the end of 2017. The country’s government has also been mentioned in relation to other dips in the market, though; in the wake of scams and pyramid schemes concerning crypto products, the government’s Prime Minister declared a ban on ICOs in September, even outlawing the trading of cryptocurrencies.
As Bitcoin has lost more than half of its value compared to last year, it is still unclear whether the move by Korea Post will result in a positive outcome in the crypto market.
What do you think about the move by KP to learn more about cryptocurrencies from Goldman Sachs? Share your thoughts with us in the comments section.