South Korea releases update on its potential cryptocurrency ban

South Korea releases update on its potential cryptocurrency ban

Yolanda Curtis
January 17, 2018

Traders and investors have positioned themselves after the South Korean government expressed their desire to take a harder stance on cryptocurrency trading in their country. He said: "All government ministries agree on the need for a government response to an overheating in cryptocurrency speculation and for a degree of regulation".

Bitcoin dropped below $12,000 this morning, falling as low as $11,182 to a four-week low as the notoriously volatile digital currency shed almost $1,000 in just an hour. Some statements indicated that the government simply wants to remove anonymity in transactions, leading some to believe that bitcoin trading could carry on. The top 100 cryptocurrencies by market share based on CoinMarketCap are all showing declines over the past 24 hours.

Last week, the justice minister said Seoul is was preparing a bill to ban cryptocurrency trading.

The price of bitcoin slumped by 15 percent to drop below $12,000 for the first time since December 4.

"Bitcoin faces a regulatory crunch sooner or later and increasingly we see signs of this starting to bite following South Korea's tentative plans to ban trading on cryptocurrencies and China's move to shutter mines".

The Central Bank of China in September had banned betting on bitcoin and other cryptocurrencies.

Cryptocurrency investors in South Korea will be fined for refusing to convert their virtual accounts into real-name ones, financial authorities said Sunday. They claimed the trade in cryptocurrencies was being used by Chinese citizens to move cash overseas. A leaked memo says Bitcoin miners should make an "orderly exit" from the country because they are using too many of its resources. Bitcoin's competitor cryptocurrencies like Ethereum and Ripple also tumbled 23 per cent and 33 per cent, respectively. Bitcoin remained the largest cryptocurrency by market cap with a value of $208 billion.

As part of its rolling clampdown on cryptocurrency trading, Chinese authorities are also planning to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralised trading.Chinese regulators have already banned initial coin offerings (ICOs) and limited bitcoin mining.

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