Proposed Ban On Cryptocurrency Trading, Exchanges In South Korea

Audrey Hill
January 12, 2018

One of the go-to sources and platforms for monitoring cryptocurrency prices - CoinMarketCap - has caused a bit of uproar in the crypto market after it made a decision to exclude South Korean exchanges from its data of price average calculations.

However, on Sunday, the website chose to remove three Korean exchanges from its price calculations, and since Korean exchanges usually trade higher than other markets, the overall average price for each coin declined, leading many to believe that the crypto market as a whole was in a bearish trend.

Justice Minister Park Sang Ki said Seoul was preparing a bill to shut down the country's virtual coin exchanges, sending bitcoin and other virtual unit prices into a tailspin.

On Thursday, January 11, 2018, reports from South Korea indicated that some of the nation's authorities are planning a ban on cryptocurrency trading in the country.

'South Korea has always had a premium because it's very hard to get cash out of the country, ' said Dwyer.

Amid Korea's toughened regulations against speculative cryptocurrency trading, Korean investors seem to be turning their eyes to foreign exchanges.

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Investors flooded the presidential Blue House website with hundreds of online petitions against the shutdown, which was swiftly reversed. As of 4 Korea, Bitcoin was trading at 23.148 million won (US$21.692) at Bithumb, down 7.14 percent from a day earlier, which is still nearly 40 percent higher than the United States price.

A representative of Bithumb, one of around 20 virtual currency exchanges in South Korea, said the company was watching developments closely. "We have nothing further to say at this moment", she told AFP.

Two weeks later, it announced a ban on opening anonymous cryptocurrency accounts and a crackdown on money laundering activities using them.

The exclusion of data from South Korean exchanges, where virtual currencies trade at a wide premium, sparked confusion and triggered a selloff.

Prices of the world's largest cryptocurrencies appeared to take some major hits on Monday morning after, arguably the most popular and important site for cryptocurrency pricing data, opted to remove South Korean exchanges from its data sources.

Other reports by MaliBehiribAe

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