After China, is South Korea also Planning to Ban Cryptocurrency Trading. Cryptocurrency (especially Bitcoin) is going to face a major smack soon due to South Korea’s approaching ban. Park Sang-ki who is the Minister of Justice said that Korean government is preparing a bill to ban all cryptocurrency trading in state.
This step is taken due the incident happened yesterday, when local police and tax authorities raided Korean exchanges on account of alleged tax dodging which added fuel to the fire.
The bill is not passed yet
In a press release the Minister said,
“There are great concern regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.”
After dialogue between the finance ministry and other finance regulators the bill was finalized.
As the bill has drafted now but to pass it as legislation, all 297 members of the South Korean National Assembly have to to vote in its favor. The entire process could take months or probably years.
Although, the bill hasn’t been finalized yet, however that hasn’t stopped Bitcoin’s worth in South Korea from crashing.
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Bitcoin Falling
According to the news, in South Korea Bitcoin’s price knock out by 21% in the country, trading at 18.3 million won ($17,064.53). After the comparison of CoinDesk’s average price it is important to note that the currency trades at an average of 30% higher price in Korea when.
After this huge difference in prices CoinMarketCap (which is a crypto data resource) announced that they’re going to take out prices from some of the Korean exchanges.
CoinMarketCap tweet shows,
“This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity. We are working on better tools to provide users with the averages that are most relevant to them.”
On the other hand, a Luxembourg based crypto exchange, Bitstamp, Bitcoin’s price also fell down and reduced by 10% getting to $13,199.
“Herd Behavior”
The excessive rise in Bitcoin prices last year (about 1500%) has encouraged many to invest in it, as well as students.
Park Nok-sun, cryptocurrency analyst at NH Investment & Securities in South Korea states,
“Virtual coins trade at a hefty premium in South Korea, and that is herd behavior showing how strong demand is here. Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out.”
