Friday, 22 June 2018
Latest news
Main » Bitcoin Tumbles As South Korea Mulls Closing Cryptocurrency Exchanges

Bitcoin Tumbles As South Korea Mulls Closing Cryptocurrency Exchanges

12 January 2018

Not only is there downward pressure on the markets, following news of the South Korean government looking to shut out cryptocurrency trading, but there's also the Coinbase announcement that has crippled Ripple going into the New Year.

The South Korean government has said it plans to impose a ban on cryptocurrency trading, sending Bitcoin prices down and causing turmoil on the cryptocurrency market. The bill prepared to ban by South Korean Government for cryptocurrency trading after enough discussion with the nation's finance ministry and Financial regulators.

As Park's conference made headlines at home and overseas, with investors flocking to the Cheong Wa Dae website to register their opposition, the presidential office said that the shutting down of cryptocurrency exchanges was one of the possible measures but that no decision has been made.

The impact on the worldwide price of notable virtual currencies was immediate, with the price of Bitcoin dropping by 21% and Ethereum by 11% following remarks by Park Sang-ki, South Korea's justice minister.

More news: Donald Trump seemed to forget the words to the United States national anthem

The government's tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.

The news sent bitcoin prices tumbling $2,000 from midnight United Kingdom time from a high of $14,890, according to data from Coinbase, before beginning to recover in the early hours of the morning.

Ethereum, which is also very popular in South Korea, also dropped 14 percent on the news.

Given the low levels of trading and relatively small number of people holding virtual currencies, wild price swings have become the norm, leading to an argument that paying too much attention to price rises and falls is a fairly futile exercise. Last September, South Korea banned initial coin offerings, and then in December, the government proposed legislation that would limit how traditional banks would interact with cryptocurrency.

More news: Martin Guptill returns to form to beat rain and Pakistan

"Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out", Park said. At 04:20 UTC, the price of a single bitcoin crashed to $12,884.91, down by 12% from 24 hours ago.

The move would "effectively suffocate" cryptocurrency transactions within the country by creating "enormous obstacles" for traders, he told AFP.

The digital currency fell more than 10 per cent from over $15,000 (£11,100) to around $13,300 in the early hours of Thursday morning United Kingdom time, before paring some of its losses.

Some investors appeared to have taken preemptive action. The virtual coin market has emerged as a breakthrough of technology over the past year.

More news: Li-Ion Batteries Ignite HP Recall

Earlier on Monday, Bitcoin price had fallen after the website CoinMarketCap removed prices from South Korean exchanges as the coins were trading at a premium of about 30% in the country.

Bitcoin Tumbles As South Korea Mulls Closing Cryptocurrency Exchanges