Singapore potentially may decide against banning cryptocurrencies despite issuing several warnings about their downsides in later part of last year. This comes as exciting news to coin developers, traders, miners, and investors, who have had limited space to engage in activities relating to digital currency in the past few months. Meanwhile, China – and many other Asian and Oceanian nations – continue to make moves to stop cryptocurrency trading.
Asia’s Cryptocurrency Worries and China FUD, again?
Many governments in Pacific Asia have become increasingly concerned with the growth and development of cryptocurrency values as well as the emergence of new cryptocurrencies and ICOs. Countries like China, India, Thailand, South Korea, Japan, Singapore, and even Australia and New Zealand have all issued warnings about the potential drawbacks of this trend.
Most of these countries have felt that the quick advancement of these currencies borders on worryingly abnormal and volatile, with many warning that this growth proves to be a case of the financial bubble. However, many of these worries are a result of FUD and not concrete evidence.
What is FUD?
Fear, uncertainty, and doubt – or FUD – refers to the negative news about cryptocurrencies that spread through different kinds of media, usually social and online media but often through mass media as well. Typically, the information being passed around is not real or true or is grossly exaggerated. This causes drops in coin price and prevents the advancement of cryptocurrencies, and it is also what is behind the widespread fear of cryptocurrency trading in many Asian countries.
— Matt Hunter (@matthunter) January 16, 2018
In late last year, Singapore’s government expressed concern that their investors may risk losing capital due to the act of investing in cryptocurrencies, which according to them is largely based on chance. This is in lieu of the 1997 financial crisis that struck Southeast Asia, giving the country plenty of reason to approach cryptocurrency trading with hesitation.
However, now, Singapore seems to have changed its mind on its stance. Now, the deputy prime minister has spoken about the experimental nature of digital currency and how trading will continue to be allowed within the nation. This is helped in part by the Monetary Authority of Singapore’s studies, which have found that there is currently no real reason to ban cryptocurrency trading in the country.
On the flip side, China has been tightening its rigorous security against cryptocurrencies. The country has been cracking down hard on trading methods and working to remove these acts altogether. China’s bank governors have declared cryptocurrencies to be pseudo-financial ventures that do not have a rightful spot within the country’s economy.
It has been months since China began its bans on digital currency trading. The first ban saw a brief crash in cryptocurrency values, but they rose again as traders found ways around the regulations. It remains to be seen whether traders will continue to evade efforts to end their work or whether they will begin moving to less strict countries.
What Does This Mean for Asia’s Cryptocurrency Market?
China’s decision to move to eradicate cryptocurrency activities spells good news for countries like Singapore and Japan, which are allowing for trading to continue. Traders from China and other countries with rigorous anti-digital currency rules are slowly beginning to move to less strict countries in order to continue their work.
The full-blown effect of what would happen if cryptocurrency continues to grow and succeed is not an avenue that can be fully studied since digital currency is a modern development. For now, analysts can only make intelligent guesses as the rest of the world waits to see how this currency will affect the rest of the world.