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By Israel S — Published January 16, 2018
South Korea announced plans to ban cryptocurrency trading which made the price of Bitcoin fall and this sent the cryptocurrency prices plunging. The Bitcoin was getting rave positive reviews and this news caused chaos in the crypto market.
The Bitcoin cryptocurrency was riding a high when its price crossed $17,000 in December 2017 and was making headlines across the world. The lawmakers around the world are working on plans to regulate the Bitcoin due to public interest and investment.
Many stories published on the internet depicted investors turning millionaires by investing in the Bitcoin due to its rising prices. News articles showing the steep rise in profits for investors trading the Bitcoin has pushed many to try this option for quick income. This could be why many investors in South Korea herded the cryptocurrency market which is a worrisome trend for the authorities.
The South Korean authorities raided local exchanges on alleged tax evasion. The finance ministry sought to find ways to tax this fast-growing market as well as the justice minister said there is a bill to ban digital currency in the country. The Korean authorities said they were inspecting six local banks that offer cryptocurrency accounts to institutions since virtual currency trading could lead to a crime surge.
This announcement on Thursday, January 11, 2018 drives a wedge between the intense popularity generated by Bitcoin. This news made the price of Bitcoin plummet about 10 percent on the Bitstamp Exchange creating doubts about prices once the ban was enforced.
South Korea announced stricter regulations for its cryptocurrency industry on Sunday, January 14, 2018 which put the earlier speculation regarding a proposed ban to rest. According to local news outlets, the Korean traders would have to use their real names for the cryptocurrency trading accounts. This confirms to bring into effect the regulation from early January by the end of this month, and also imposes fines on those who do not comply with these new regulations.
An official statement from the Office of Government Policy Coordination was released on Monday, January 15 which stated that a ban on cryptocurrency is not in the works since the government has yet to come to a final decision.