The Impact of Politics on Crypto and the Blockchain

 

There are a variety of factors to consider before investing in any market, especially cryptocurrency and the blockchain. One thing which may surprise new investors, especially those who came in last year during the bullish market trends, is just how much influence political decision making can have over the entire crypto industry. Sure, this can happen in any industry, with crypto being still in its infancy though, decisions are still being made that can have a huge domino impact within the sector. This is not always a bad thing.

Legislation Matters

Undoubtedly, the next couple of years are key in many countries. When getting started in crypto, the political policies within your country were likely not on the top of the agenda. Now however, with the surge created by last years bullish trends, many nations are taking a close look at the sector. In Korea and China for example, it is illegal to run an ICO with the threat of other legislation incoming. It is also almost impossible for foreign residents in Korea to trade on domestic exchanges.

These are important issues which can really swing the market in one direction or another depending on the stance the respective governments take.

The two sides if the Coin

As we have discussed, the environments for crypto and the blockchain in some countries is less than friendly. That rarely dampens the spirits of the community though. You will find that Korea in particular is still one of the major markets and a hotbed of activity in the space.

That said, there are much more liberal nations out there who have welcomed the blockchain innovations with open arms. Malta and Estonia would be considered to such nations. They have spotted the emerging eveolution and become early adopters in helping to get ICOs and new projects started.

As the wave of progress continues, the majority of the community certainly hope that more countries can provide this type of support which would surely boost crypto spirits and markets as well as being highly beneficial to domestic economies.