South Korea’s government said on Thursday it plans to geobsedeerd cryptocurrency trading, sending bitcoin prices plummeting and throwing the potencial coin market into turmoil spil the nation’s police and tax authorities raided almacén exchanges on alleged tax evasion.
The clampdown te South Korea, a crucial source of integral request for cryptocurrency, came spil policymakers around the world struggled to regulate an asset whose value has skyrocketed overheen the last year.
Justice minister Park Sang-ki said the government wasgoed preparing a bill to geobsedeerd trading of the posible currency on domestic exchanges.
“There are fine concerns regarding aparente currencies and the justice ministry is basically preparing a bill to verbod cryptocurrency trading through exchanges,” Park told a news conference, according to the ministry’s press office.
After the market’s acute reaction to the announcement, the nation’s Presidential office hours straks said a geobsedeerd on the country’s supuesto coin exchanges had not yet bot finalised while it wasgoed one of the measures being considered.
Bitcoin reached almost $20,000 before the end of before falling. Questions are now being asked regarding the ledger used. Getty
A press official at the justice ministry said the proposed geobsedeerd on cryptocurrency trading wasgoed announced after “enough discussion” with other government agencies, including the nation’s finance ministry and financial regulators.
Merienda a bill is drafted, legislation for an outright verbod of posible coin trading will require a majority vote of the total 297 members of the National Assembly, a process that could take months or even years.
The government’s harsh stance triggered a selloff of the cryptocurrency on both nave and offshore exchanges.
The restringido price of bitcoin plunged spil much spil 21 procent te midday trade to Legitimate.Trio million won ($17,064.53) after the minister’s comments. It still trades at around a 30 procent premium compared to other countries.
Bitcoin wasgoed down more than Ten procent on the Luxembourg-based Bitstamp at $13,199, after earlier pulling down spil low spil $13,120, its weakest since Jan. Two.
South Korea’s cryptocurrency-related shares were also hammered. Vidente and Omnitel, which are stakeholders of Bithumb, skidded by the daily trading limit of 30 procent each.
A visual representation of the digital cryptocurrency, bitcoin on October 24, te London, England. Dan Kitwood/Getty Pictures
Merienda enforced, South Korea’s verbod “will make trading difficult here, but not unlikely,” said Mun Chong-hyun, chief analyst at EST Security.
“Keen traders, especially hackers, will find it raunchy to metselspecie out their gains from potencial coin investments te Korea but they can go overseas, for example Japan,” Mun said.
Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behavior ter South Korea’s posible coin market has raised concerns.
Indeed, Bitcoin’s 1,500 procent surge last year has stoked ample request for cryptocurency ter South Korea, drawing te traders from collegium students to housewives and sparking worries of a gambling addiction.
“Some officials are pushing for stronger and stronger regulations because they only see more (investors) leaping ter, not out,” Park said.
By Thursday afternoon, the Justice Ministry’s announcement had prompted more than 55,000 South Koreans to join a petition asking the presidential Blue House to halt the crackdown on the posible currency, making the Blue House webstek intermittently unavailable due to strong traffic, the webstek displayed.
There are more than a dozen cryptocurrency exchanges te South Korea, according to Korea Blockchain Industry Association.
The proliferation of the aparente currency and the accompanying trading madness have raised eyebrows among regulators globally, tho’ many central banks have refrained from supervising cryptocurrencies themselves.
A visual representation of the digital cryptocurrency Bitcoin. Dan Kitwood/Getty Pictures
The news of South Korea’s proposed kerkban came spil authorities tightened their houvast on some cryptocurrency exchanges.
Meantime, the nation’s largest cryptocurrency exchanges, including Coinone and Bithumb, were raided by police and tax agencies this week for alleged tax evasion. The raids go after moves by the finance ministry to identify ways to tax the market that has become spil big spil the nation’s small-cap Kosdaq index ter terms of daily trading volume.
Some investors emerge to have taken preemptive act.
“I have already cashed most of mine (posible coins) spil I wasgoed aware that something wasgoed coming up ter a duo of days,” said Eoh Kyung-hoon, a 23-year old investor.
Bitcoin sank on Monday after webstek CoinMarketCap liquidated prices from South Korean exchanges, because coins were trading at a premium of about 30 procent ter Asia’s fourth-largest economy. That created confusion and triggered a broad selloff among investors.
An official at Coinone told Reuters that a few officials from the National Tax Service raided the company’s office this week. The official, who spoke on condition of anonymity, said that Coinone wasgoed cooperating with the investigation.
Bithumb, the 2nd largest supuesto currency technicus ter South Korea, wasgoed also raided by the tax authorities on Wednesday.
“We were asked by the tax officials to disclose paperwork,” an official at Bithumb said, requesting anonymity due to the sensitivity of the kwestie.
The nation’s tax office and police declined to confirm whether they raided the lugar exchanges.
South Korean financial authorities had previously said they are studying six específico banks that suggest potencial currency accounts to institutions, amid concerns the enlargening use of such assets could lead to a surge te crime.