Bitcoin tumbles as digital coins resume slide

Pablo Tucker
January 16, 2018

As reported by local news agency Yonhap, earlier today South Korea's finance minister Kim Dong-yeon said that the measure is still being considered by the government, which wants to clamp down on the "irrational" investment craze for cryptocurrency in the country. The market seems to be a bit spooked with the news from South Korea where we seem to be getting different news on different days making it hard for the traders to gauge what exactly is going to happen in the near future over there.

A governmentwide decision will be made in the future after sufficient consultation and coordination of opinions.

Opening anonymous cryptocurrency accounts is also banned until banks install a system that ensures only real-name bank accounts and matching accounts at cryptocurrency exchanges to be used for deposits and withdrawals.

Adam Reese is a Los Angeles-based writer interested in technology, domestic and worldwide politics, social issues, infrastructure and the arts.

While the largest digital coin trimmed its loss and was down 13% at $12,146 as of 8:28 NY, it was still at the lowest level since late December, according to composite pricing on Bloomberg.

Chung stressed that there was no miscommunication within the government, adding that last week's comment about shutting down the exchanges by the Justice Minister was a proposal.

This drop in the market is making quite an impact considering just a month ago Bitcoin's value was at $20,000.

According to crypto exchange, other major virtual currencies ethereum, ripple and bitcoin cash, a clone which split from the original past year, posted double-digit losses by early afternoon. "We do not think that the complete banning of cryptocurrencies is possible".

The government of South Korea has been in fight with its own citizens over cryptocurrency and especially Bitcoin. The largest digital coin was down 16% to $11 755 as of 11:15, the lowest level since late December, according to composite pricing on Bloomberg, bringing an end to its two-day rally.

Investments in bitcoin and other cryptocurrencies carry a substantial amount of risk and people should only be prepared to invest if they do not mind losing their money, according to Ben Hung of Standard Chartered Bank.

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