South Korean Prime Minister Fears Bitcoin Could Steer Kids Toward Crime

South Korean Prime Minister Lee Nak-yeon has released a statement highlighting the potentially negative impact a highly speculative investment like Bitcoin can have on the country’s youth.

As per a translation by CNBC, the South Korean leader expressed the concern that kids could resort to crimes such as drug trafficking or running pyramid schemes in order to cash in on the Bitcoin mania.

Bitcoin is in the midst of an incredible bull run, and recently crossed the highly significant $10,000 threshold – the frenzy surrounding the digital coin is slowly reaching fever pitch as mainstream acceptance becomes more likely and media hype, coupled with positive developments such as the imminent launch of CME’s Bitcoin futures product, drive the price higher.

Statement from Prime Minister Lee Nak-yeon

“There are cases in which young Koreans including students are jumping in to make quick money and virtual currencies are used in illegal activities like drug dealing or multi-level marketing for frauds.”

“This can lead to serious distortion or social pathological phenomena, if left unaddressed,” he added.

Prime Minister Lee Nak-yeon also urged government agencies, such as the South Korean Ministry of Justice, to address the growing issues surrounding Bitcoin and other cryptocurrencies.

While Bitcoin’s surging price has led many to dub it a bubble, the cryptocurrency’s price movement remains largely unaffected by criticism, and investors remain eager to get in on the Bitcoin action. Coinbase, the largest cryptocurrency exchange in the United States, now boasts more users than brokerage firm Charles Schwab, and as per a report by Google Trends, the search term “buy bitcoin with credit card” has reached an all-time high.

However, Bitcoin remains an object of suspicion for governments, financial regulatory authorities, central banks, and several prominent finance industry figures such as Warren Buffet. While South Korea has issued a complete ban on initial coin offerings, Bitcoin trading in the country remains rampant and accounts for approximately 18% of the total market. In addition, Bithumb, the largest cryptocurrency exchange in terms of trade volume, is headquartered in South Korea.