The famous digital currency was struggling to keep up its slowly growing pace this week as South Korea announces that they are looking to curb the cryptocurrency trading due to the massive amount of exchanges which may trigger money laundering possibilities.
South Korea has been one of the main countries to buy the massive price surges this year; the number of trades conducted on Bitcoin and other similar digital currencies were growing on a significant pace and have helped anchor the massive prices this year. The announcement today managed to dent the recovering prices today after the massive selloffs.
South Korean Government’s Statement
According to recent data, the Bitcoin prices managed to plunge by 11% today on South Korean government’s statement regarding their plan on apprehending the current Bitcoin trading. According to the government’s statement, “The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility,”
Additional information revealed that the country is looking to ban the use of anonymous trading of Bitcoin; the decision is made after several crackdowns on local issues which revolves around money laundering activities in regards to using them. The government added that "Officials share the view that virtual currency trading is overheating irrationally ... and we can no longer overlook this abnormal speculative situation,"
Bitcoin Figures and Demographics in SK
The trading volume of cryptocurrency in South Korea is reported to be at a 20% of global Bitcoin transaction. The figures were incredible as reports revealed that the trading volume is roughly about 10 times of South Korea’s share of the world economy.
According to reports and demographics, South Korea managed to embrace Bitcoin and cryptocurrency as a staple currency locally. Reports revealed that local housewives and students have also been using the digital currency on a daily basis.
More about the new regulation reveals that the government will also impose a new regulation that will allow regulators to close virtual coin exchanges if deemed necessary; this new regulation will join the decision to ban anonymous Bitcoin trading. South Korea has also announced in the past that they are looking to add tax capital gains from cryptocurrencies.
Singapore’s Bitcoin Statement
On a separate note, several Asian countries such as Singapore recently noted and announced the massive risk of losing money in regards to digital currency trading. The local monetary regulators announced that the surging digital currency may and will cause investors to lose their money by joining the trading activities.
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