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South Korea may ban cryptocurrency trading

Bitcoin: South Korea flags ban on cryptocurrency trading, sending prices plummeting

The South Korean Government has flagged a ban on cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil. The clampdown in South Korea, a crucial source of global demand for cryptocurrency, came as policymakers around the world struggled to regulate an asset whose value has skyrocketed over the last year.

Source: Rueters
“There are great concerns regarding virtual currencies and [the] Justice Ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” Justice Minister Park Sang-ki said in a press conference.
A press official said the proposed ban on cryptocurrency trading was announced after “enough discussion” with other government agencies, including the nation’s finance ministry and financial regulators.
Once a bill is drafted, legislation for an outright ban of virtual coin trading would 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 tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.
The local price of bitcoin plunged as much as 21 per cent in midday trade to 18.3 million won ($21,700) after the minister’s comments.
It still trades at around a 30 per cent premium compared to other countries.
Will the Bitcoin bubble burst?

The boss of JPMorgan Chase told an investor conference if any of his staff were caught trading Bitcoin he would “fire them in a second” and the cryptocurrency was a “fraud”. So, is it?

Bitcoin was down more than 10 per cent on the Luxembourg-based Bitstamp at $US13,199 ($16,762), after earlier dropping as low as $13,120 ($16,658), its weakest since January 2.
Once enforced, South Korea’s ban “will make trading difficult here, but not impossible,” said Mun Chong-hyun, chief analyst at EST Security.
“Keen traders, especially hackers, will find it tough to cash out their gains from virtual coin investments in Korea but they can go overseas, for example Japan,” Mr Mun said.
Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behaviour in South Korea’s virtual coin market had raised concerns.
Indeed, bitcoin’s 1,500 per cent surge last year has stoked huge demand for cryptocurrency in South Korea, drawing college 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] jumping in, not out,” Mr 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 virtual currency, making the Blue House website intermittently unavailable due to heavy traffic.

{ 9 comments… add one }
  • Penguinite 12/01/2018, 6:42 am

    How on earth can any government, let alone RSK, do that. They would have to totally shut down the internet. Fools and their money are soon parted. Seems the only safe currency is gold but where/how to store it?

  • luk1955 12/01/2018, 6:42 am

    Governments do not like anything outside their control, which is why they are trying to ban cash. The governments are the biggest terrorists around, it is not the jihadis that worry me so much as do good governments that terrorise their citizens, like all the western world governments do now to their law abiding citizens.

    JP Morgan is the biggest most fraudulent company in the world who engineer financial crises so they can make vast profits.

    Terrorists use halal certification to collect monies for terror operations. Halal is a direct ripoff of the jewish kosher process. Now why religions discriminate against pigs is beyond me, since pigs are really quite clean animals, compared to cats or large dogs.

    • Neville 12/01/2018, 5:20 pm

      Clean enough, as far as it goes.
      “pigs unclean” is historical, biblical in fact, where eating pork could and often did pass on trichinellosis, which in those times of ‘be fruitful and multiply’ was seven years of bad luck.

  • Graham Richards 12/01/2018, 7:17 am

    I smell another World Financial Crisis in the making. The last one had its roots in government interference in mortgage loans to people who had little or no chance of ever repaying debt. The loan debt was traded in parcels of bargain basement investments which quickly became totally worthless when investors realised what had been done by major financial institutions to dump their “junk”.
    Crypto currencies have no fiscal backing, are not backed by industrial output, tangible assets. One responsible country says no to it & the bottom falls out of it’s value. What happens when other markets hesitate. CRASH & BURN,

  • Lorraine 12/01/2018, 9:03 am

    monopoly money, play money, I read all these bitcoin millionaires.
    Gold backs currency , or it use to

    • Maryanne 12/01/2018, 11:30 am

      Not any more, Lorraine.

  • Bwana Neusi 12/01/2018, 1:08 pm

    We are totally pissed off with the inundation of Bitcoin spam over the email system.
    It has not been unusual to get a dozen bitcoin driven spams in a day and there doesn’t seem to be any way to stop it.
    Changing email addresses seems to work for a few days, but they must be operating powerful algorithms to sniff out new targets.
    Works on the probability like water boarding – that after several hundred attacks you will capitulate.

    • Biking Voter 12/01/2018, 7:27 pm

      Interesting you say that BN, I hold several email addresses and do not receive spam on any of them and further more I do not run any form of anti virus.

      The only thing I do run is Ghostery .

  • Zoltan 12/01/2018, 3:29 pm

    After a tip off from a well known blog site I have, just today, sold all my holdings in Bitcoin and reinvested in a more tangible form of currency.
    I’m 110 % convinced that black pudding is the future.

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