Tapscott: Korea Crypto Ban Could Ruin Economy for Decades

The world awaits anxiously as South Korea continues to debate whether it should close down all cryptocurrency exchange activity.

Don Tapscott, a best-selling author and business technology specialist, believes that such a ban would be a monumental mistake.

He said that ICO and cryptocurrency bans are “heavy-handed approaches used by dictators and undemocratic countries,” urging South Korea to pursue “sensible” regulation that won’t annihilate its local market.

“Governments can crush this and destroy their economies for decades. It’s not clear which way [South Korea] will go, but there is an optimal and correct direction,” Tapscott said.

He then compared the political situation in South Korea with the time when the UK passed what was known as “red flag laws” in the 19th century.

During that time, automobile drivers were required to hire an assistant who waved flags in front of their cars so that they could avoid hitting horses in the area.

As a result of these laws, vehicles remained relatively unpopular in the UK while the automobile industry in the United States took off in what was later known as “The Roaring Twenties.”

“Every county is faced with a red flag moment. What will you do? Will you embrace the automobile like the U.S. did, or will you pass the red flag law?” Tapscott added.

There remains much confusion as to whether South Korea has a defined position on a cryptocurrency ban, but it may become clearer in the days ahead.

A week ago, authorities raided two of the largest exchanges in the country on suspicions of tax evasion.

The drama has escalated since then, with the Justice Ministry at odds with both the Office for Government Policy Coordination and the President’s office.

While the Justice Ministry insisted that it was banning cryptocurrency trading, the rest of the South Korean government had to clarify that it did not issue such a policy.