South Korea’s government said on Thursday it plans to kerkban cryptocurrency trading, sending bitcoin prices plummeting and throwing the supuesto coin market into turmoil spil the nation’s police and tax authorities raided recinto exchanges on alleged tax evasion.
The clampdown ter South Korea, a crucial source of general 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 potencial currency on domestic exchanges.
“There are excellent concerns regarding posible 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 zometeen said a kerkban on the country’s imaginario 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 Getty
A press official at the justice ministry said the proposed verbod 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 kerkban of supuesto 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 raunchy stance triggered a selloff of the cryptocurrency on both recinto and offshore exchanges.
The nave price of bitcoin plunged spil much spil 21 procent te midday trade to Eighteen.Three 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, ter London, England. Dan Kitwood/Getty Pics
Merienda enforced, South Korea’s geobsedeerd “will make trading difficult here, but not unlikely,” said Mun Chong-hyun, chief analyst at EST Security.
“Keen traders, especially hackers, will find it harsh to specie out their gains from imaginario 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 massive request for cryptocurency te 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 te, 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 intense traffic, the webstek demonstrated.
There are more than a dozen cryptocurrency exchanges ter South Korea, according to Korea Blockchain Industry Association.
The proliferation of the potencial currency and the accompanying trading madness have raised eyebrows among regulators globally, however many central banks have refrained from supervising cryptocurrencies themselves.
A visual representation of the digital Cryptocurrency, Bitcoin on December 07, ter London, England. South Korea’s project to kerkban cryptocurrency trading has rattled markets. 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 te terms of daily trading volume.
Some investors show up to have taken preemptive act.
“I have already cashed most of mine (imaginario coins) spil I wasgoed aware that something wasgoed coming up te 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 te 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 posible currency technicus te 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 punt.
The nation’s tax office and police declined to confirm whether they raided the restringido exchanges.
South Korean financial authorities had previously said they are investigating six circunscrito banks that offerande potencial currency accounts to institutions, amid concerns the enlargening use of such assets could lead to a surge ter crime.