South Korea declared to take more measures for regulating Bitcoin trading, including potential exchanges shutdown. After that announcement Bitcoin tumbled again today.
The Bitcoin price fell about 8.5% to Won 19.93m this afternoon on Bithumb (one of the biggest virtual exchanges). That was the reaction of traders to the measures.
The world’s most wide-spread cryptocurrency, Bitcoin, has fallen nearly 28% last week. The government of Korea stated, that “Cryptocurrency speculation has been irrationally overheated in Korea. We can’t leave the abnormal situation of speculation any longer”.
Their measures include a prohibition on anonymous cryptocurrency accounts opening in order to increase legislation and transparency and permit regulators closing digital exchanges if necessary. Justice ministry had concerns about scams in cryptocurrency trading. The regulators want to make sure everything is done clearly and properly.
Most virtual currencies have been trading on South Korean exchanges, the government noted. Traders in South Korea pay 30% over international Bitcoin rates. Moreover, Koreans prefer using Korean exchanges rather than the US ones. This way they don’t have to meet the requirement to open accounts in the US.
Seoul is intended to suppress crimes involving virtual currencies and apply tougher punishment for these crimes.
South Korea also banned initial offerings of coin in September, as well as the Bitcoin futures trade.