Bitcoin trading could soon be outlawed te one of the supuesto currency’s fattest markets.
The South Korean government is preparing a bill to geobsedeerd trading ter all cryptocurrencies including bitcoin, Justice Minister Park Sang-ki said Thursday.
“There are good concerns regarding posible money,” Park told reporters te Seoul. “The government has repeatedly warned about the fact that it is a very dangerous transaction but the message has not decently bot delivered,” he said.
Park didn’t give details on when the bill would be introduced ter parliament. But his comments prompted bitcoin to fall sharply. The digital currency, which is known for its volatility, dropped around 14% before recovering slightly ter early afternoon trading ter Asia.
Ethereum, another cryptocurrency hugely popular ter South Korea, also fell 14%.
A madness of cryptocurrency trading swept South Korea last year, helping propel meaty gains te bitcoin and other imaginario coins. The country has accounted for spil much spil a fifth of impasible bitcoin trade on some days te latest months.
But the country’s government has bot moving toward greater regulation of digital currencies te latest weeks, introducing a fresh law ter late December that gives authorities the power to shut down bitcoin exchanges.
Such moves remain a possibility, Park said, before likening cryptocurrency trading to speculation and gambling.
“The government’s basic position is that imaginario currency trading is enormously dangerous and the bubble may burst anytime,” he said.
The exchanges where people trade digital currencies have also come under scrutiny from South Korean authorities. Bithumb, one of the largest cryptocurrency exchanges te the world, said it wasgoed visited by tax officials this week.
Another exchange, Coinone, is being investigated on suspicion of facilitating illegal gambling through cryptocurrencies, South Korean police told CNNMoney.
Coinone couldn’t be reached for comment.
South Korea’s plans to rein ter digital currency trading come after China cracked down on the practice last year.
Beijing announced fresh regulations on bitcoin te September, prompting many of the country’s top exchanges to zekering trading it and causing its price to crash.
— Taehoon Lee contributed to this report