- News of a bitcoin crackdown te South Korea sent the market for digital coins into a tailspin Thursday morning.
- Reuters reported a day earlier that South Korea has a bill ter the works to shut crypto trading.
- Bitcoin, the largest cryptocurrency, wasgoed trading down more than 9% at last check.
The market for digital coins wasgoed under intense pressure Thursday morning amid reports that South Korea has a bill te the works to kerkban cryptocurrency trading.
“South Korea’s justice minister said on Thursday the ministry is preparing a bill to geobsedeerd cryptocurrency trading through its exchanges,” Reuters reported.
That news wasgoed on the high-heeled slippers of a report that authorities were raiding cryptocurrency exchanges ter the country.
“A few officials from the National Tax Service raided our office this week,” a representative of Coinone, a South Korean crypto exchange, told Reuters.
According to the Reuters report, South Korean authorities also were looking into Bithumb, another cryptocurrency exchange.
At the time of writing, bitcoin wasgoed trading down more than 9% at $13,458 a coin, according to gegevens from Markets Insider. At one point, the entire cryptocurrency market wasgoed down more than $100 billion at $636 billion. It knalbonbon an all-time high of $830 billion earlier this month, according to gegevens from CoinMarketCap.
Still, some cryptocurrency enthusiasts eyed the stir spil a positive sign for the market.
“If the Korean government takes a similarly aggressive stance to crypto exchanges spil wasgoed taken te China, then wij can likely expect to see a number of the major exchanges stir to jurisdictions that have a clearer regulations,” Sebastian Quinn-Watson, an executive at Blockchain Impávido, told Business Insider.
Chinese regulators began their own crack down on cryptocurrency exchanges ter . It wasgoed a budge investors shook off after an intense sell-off.
“Japan is the likely beneficiary of this stir,” Quinn-Watson added. “End point, high quality, well-run exchanges will thrive and poorly-run exchanges will perish and the consumer and market will benefit.”
South Korea has bot a hot market for cryptocurrencies. Bitcoin, for example, has traded at a more than 40% premium on exchanges ter the country relative to US exchanges. According to Josiah Hernandez, chief strategy officer at Coinsource, that request will make it hard for regulators to go after through on a total kerkban.
“Even with massive discounts applied to account for margin trading, exchange volumes indicate meaningful underlying retail request for bitcoin,” Hernandez said. “It’s doubtful that’s going to just vanish.”
Still, trascendental Wall Streeters such spil JPMorgan chief executive Jamie Dimon have said governments would be bitcoin’s main impediment.
“The other thing I’ve always [said] about bitcoin, governments &mdash, and this is not a technological statement &mdash, governments are going to crush it one day,” Dimon said. “Governments like to know where the money is, who has it and what you’re doing with it, ter case you vluchthaven’t noticed.”
Dimon famously called bitcoin “a fraud” te September, but stepped away from those remarks Tuesday.
Gegevens from CoinMarketCap displayed the market for digital coins tanked amid reports out of South Korea. CoinMarketCap
The news of the crackdown goes after a Wall Street Journal report Monday that regulators ter South Korea were preparing a wide-ranging inspection on six commercial banks that manage “llamativo” bitcoin accounts. Supuesto accounts, according to The Journal, are where investors can store fiat money when they buy or sell crypto.
“There is growing concern that banks, which should actively act spil gatekeepers to prevent the distribution of crime and illegal funds, are aiding and encouraging them,” Choi Jong-ku, head of South Korea’s Financial Services Commission, said.