link4704 link4705 link4706 link4707 link4708 link4709 link4710 link4711 link4712 link4713 link4714 link4715 link4716 link4717 link4718 link4719 link4720 link4721 link4722 link4723 link4724 link4725 link4726 link4727 link4728 link4729 link4730 link4731 link4732 link4733 link4734 link4735 link4736 link4737 link4738 link4739 link4740 link4741 link4742 link4743 link4744 link4745 link4746 link4747 link4748 link4749 link4750 link4751 link4752 link4753 link4754 link4755 link4756 link4757 link4758 link4759 link4760 link4761 link4762 link4763 link4764 link4765 link4766 link4767 link4768 link4769 link4770 link4771 link4772 link4773 link4774 link4775 link4776 link4777 link4778 link4779 link4780 link4781 link4782 link4783 link4784 link4785 link4786 link4787 link4788 link4789 link4790 link4791 link4792 link4793 link4794 link4795 link4796 link4797 link4798 link4799 link4800 link4801 link4802 link4803 link4804 link4805 link4806 link4807 link4808 link4809 link4810 link4811 link4812 link4813 link4814 link4815 link4816 link4817 link4818

Bitcoin falls as one of the world’s biggest cryptocurrency markets readies a bill to ban trading

Bitcoin falls as one of the world's biggest cryptocurrency markets readies a bill to ban trading

Bitcoin falls as one of the world's biggest cryptocurrency markets readies a bill to ban trading

  • South Korea's justice minister said that the country is preparing a bill that will ban all cryptocurrency trading

  • Park Sang-ki told reporters that there are "great concerns" regarding virtual currencies

  • Bitcoin tumbled more than 12 percent following Park's remarks

South Korea's justice minister said on Thursday that a bill is being prepared to ban all cryptocurrency trading in the country.

That news is a major development for the cryptocurrency space, as South Korea is one of the biggest markets for major coins like bitcoin and ethereum.

According to industry website CryptoCompare, more than 10 percent of ethereum is traded against the South Korean won — the second largest concentration in terms of fiat currencies behind the dollar. Meanwhile, 5 percent of all bitcoin are traded against the won.

"There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," Park Sang-ki said at a press conference, according to the ministry's press office.

Bitcoin tumbled more than 12 percent following Park's remarks, according to CoinDesk's bitcoin price index that tracks prices from four exchanges. At 1:26 p.m. HK/SIN, the cryptocurrency price retraced some of its losses to trade at $13,547.7.

Park added that he couldn't disclose more specific details about proposed shutdown of cryptocurrency trading exchanges in the country, adding that various government agencies would work together to implement several measures.

Reuters further reported that a press official said the proposed ban on cryptocurrency trading was announced after "enough discussion" with other government agencies including the nation's finance ministry and financial regulators.

Cryptocurrency trading in South Korea is very speculative and similar to gambling. Major cryptocurrencies like bitcoin and ethereum are priced significantly higher in the country's exchanges than elsewhere in the world. For example, bitcoin traded at $17,169.65 per token at local exchange Bithumb, which was a 31 percent premium to the CoinDesk average price.

That difference in price is called a "kimchi premium" by many traders.

In fact, earlier this week, industry data provider CoinMarketCap tweeted that it would exclude some South Korean exchanges in price calculations due to the "extreme divergence in prices from the rest of the world" and for "limited arbitrage opportunity." The exchanges that were removed from the price calculation included Bithumb, Korbit and Coinone.

Last month, the South Korean Financial Services Commission said it was prohibiting cryptocurrency exchanges from issuing new trading accounts. If an exchange does allow new accounts, the government has the ability to take action to either stop trading or shut the exchange down, the commission said in a statement.

The commission added that, since much of the cryptocurrency trading was being done anonymously, users must use their real names.

The government also indicated it would closely monitor banks and would "swiftly" step in to limit fund flows into cryptocurrencies if necessary.

Bitcoin exposed stocks in South Korea took a major hit after the announcement. Shares of Omnitel, which has a bitcoin remittance business, crashed 30 percent, Vidente shares tumbled 29.96 percent, Digital Optics fell 13.46 percent and KPM Tech was down 5.19 percent.

That news from the justice minister comes after the country's largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion, people familiar with the investigation told Reuters.

 

Author : Saheli Roy Choudhury

 

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

Alan Zibluk Markethive Founding Member