Bitcoin Plunges to $12,800 As South Korea Schemes Trading Taboo

Bitcoin Plunges to $12,800 As South Korea Schemes Trading Taboo

South Korean authorities keep curbing bitcoin trading. After banning the registration of novel virtual account services for crypto exchanges and demanding identification of all the account holders, the country is taking on a bill, which will prohibit digital money trading on exchanges.

Meanwhile, bitcoin is going through the downfall. On Monday, January 8 BTC’s price sharply fell to $14,200 when prices of a range of other most known cryptocurrencies experienced the drop. The Wall Street Journal named an obvious reason for such a phenomenon: website purged data from some South Korean exchanges. Thus, website’s price quotes for a group of digital coins, e.g., bitcoin, Ripple, and Ethereum, changed.

Our top trading bots

At the moment, bitcoin is experiencing another wave of the drop. On January 11 in the afternoon, the father of all cryptocurrencies plunged to $12,845, falling by 14% amid the news about South Korea planning the bill.

New Bill To Come: South Korea Strengthening The Hold on BTC Trading

The South Korean government’s crusade of suppressing cryptocurrencies in the country, which are very popular among citizens, is ongoing. The bill, aimed at disabling crypto trading in the country, is being worked on, according to the country’s justice minister Park Sang-ki, The Financial Times reported.

“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” explained Park Sang-ki.

In scope, the South Korean digital money trading market is the third massive one around the globe but it will vanish if the country’s National Assembly passes the ban document. Crypto enthusiasts started attacking the government with messages, rebelling against the potential taboo. However, as the Blue House chief press secretary Yoon Young-chan accentuated, the decision concerning the bill is not the full and final conclusion.

The press secretary added that before the final decision, there will be a discussion between all governmental branches, as Yonhap informed.

What’s The Matter?

In the past few weeks, South Korea notified about its regulatory measures, which could restrict the crypto market. For example, it prohibited the trading of bitcoin-based futures and the use of unidentified virtual currency accounts. Since then citizens above 19 years old, foreigners and local financial establishments are not allowed to pile into cryptos.

The government also keeps an eye on six South Korean banks which provide institutions with digital currency accounts as they may not stick to the rules which prevent money laundering and might not use real names for these accounts. This followed the last December claim of the central bank head, who said the digital coins trading had been speculative.

Moreover, South Korea turned to International Monetary Fund, the European Commission, and 10 other international organizations as well as to 23 nations with the call for collaboration in regulating global cryptocurrency trading.

Bubble Talks

The popularity of crypto trading in South Korea has also led to the following consequences:

  • traders started disbursing 40% premiums on top of international rates for BTC
  • the authorities have become worried that ordinary buyers could be exploited this way

For example, South Korean justice minister Park Sang-ki believes that bitcoin and its ilks’ trading can be compared to gambling and even speculation. Therefore, the nation may suffer because of the financial lesion. The country’s officials are also skeptical because they assume bitcoin craze may end up with the burst of the economic bubble.

Main Exchanges At Gunpoint

Besides, earlier on January 11, the representatives of the country’s tax department raided Coinone and Bithumb, which are the South Korean top crypto exchanges. The spokesperson of the first one claimed that the tax agents enquired about Coinone sales, crypto trading volume, and some information regarding corporate tax payment.

“Police see this as gambling and local authorities have also advised us to stop the service as they think it fuels the market frenzy,” explained the Coinone’s representative.

Important to mention, this South Korean crypto exchange has been investigated by the country’s law enforcement agencies since the end of December 2017. According to FT, the subject of the probe is the exchange’s special margin trading service, which lets the traders short virtual money. In the mid-December the exchange pulled up the service, listening up to the authorities’ recommendation, even though Coinone claimed it is lawful. Some other crypto exchanges in the country had to follow the same steps.

Forbidden Fruit is Much Sweeter

Notwithstanding the above, some experts in the field believe that the more the government restricts virtual money, the more ordinary buyers and investors will value it. This will happen due to the fact that South Korean citizens will be limited in access to bitcoin and its brethren. Therefore, their price may skyrocket. Such an opinion expressed the analyst at DB Financial Investment, Moon Hong-chul:

“The regulatory moves could actually boost the scarcity value of virtual currencies and fuel demand further.”

Charts Source:

NFTs by mail? US Postal Service plans to support postage tokens
The United States Postal Service will soon be stepping into the nonfungible token market. Not to release artwork or music, but rather to help customers...
Crypto wagering for online sports betting now legal in Wyoming
Wyoming has passed a new law legalizing online sports betting in the state with gamblers able to fund their accounts with bookmakers using cryptocurrencies.Governor...
Former SEC chair Jay Clayton tips new Bitcoin regulations are coming
Former US Securities and Exchange Commission Chair Jay Clayton has stated that Bitcoin has not been classified as a security for a long time.But speaking...
Norwegian billionaire ditches skepticism, invests in local crypto exchange
Within the same month, Norwegian billionaire investor Øystein Stray Spetalen has gone from dismissing Bitcoin (BTC) as a "nonsense currency" to revealing...
'Still early' for BTC price peak: 5 things to watch in Bitcoin this week
Bitcoin (BTC) starts a new week in all-too-familiar territory with all-time highs just out of reach.After a positive weekend, the largest cryptocurrency...
Instagram influencer charged over duping followers out of $2.5M BTC
An Instagram influencer has been charged with wire fraud, after he allegedly scammed followers out of $2.5 million worth of Bitcoin. Social media influencer...
What Everyone Should Know About Tokenization
Blockchain tokenization is a means of digital representation of a right and can be done with the help of a ledger. This can be a right to asset ownership...
Ethereum Devs Name The Date of Postponed Constantinople Fork
As it is known, on January 17 the Ethereum’s update Constantinople was supposed to be activated. However, this did not happen due to a vulnerability found...
Bulgaria Launches One of the First Blockchain Master’s in Europe
As the hype over blockchain does not abate, more industries embrace this tech trend (or plan to do so). The adoption of DLT is sprawling to such spheres...
Fundstrat’s Tom Lee Says Bitcoin Will Be $25,000 By The End of 2018
Before 2019 comes, bitcoin might rise in price to the margin of $20,000, said the main Wall Street strategist who issues BTC price trades Tom Lee. According...
Ripple Donated $29 mln to a Non-Profit As its Founder Dared to Ask is a nonprofit organization, established around 20 years ago to help educators collect funds for teaching projects. And, as it is known,...
Ukraine to Recognize Mining As Economic Activity
As Ukrainian legislators are struggling to come up with the final version of the bill on cyber money, the country’s government decided to take the bull...
Israeli Diamond Exchange Issues Its Cryptocurrency
The Israeli Diamond Exchange began issuing its cryptocurrency - for settlements between dealers and investors. This should breathe new life into the industry,...
ICO Will Solve Problems Of The Unemployed
In Berkeley, California, is considering the possibility of holding an ICO to raise funds to deal with the city's current problems, for example, related...
Hot US Senate Hearings: ‘If No Bitcoin, No Blockchain,’ Says CFTC Chairman
The US is likely to meet new virtual money regulation in the foreseeable future. Such a conclusion comes out of the CCN, at the yesterday’s hearing,...