The nation’s largest cryptocurrency exchanges like Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion.
South Korea, a crucial source of integral request for cryptocurrency, is preparing a bill to geobsedeerd on cryptocurrency trading. This unforeseen development has thrown the supuesto coin market te a tizzy. This clampdown came spil policymakers around the world struggled to regulate the value of cryptocurrency that skyrocketed overheen the last year.
Justice Minister Park Sang-ki, talking about the bill at a press conference said, “There are good concerns regarding potencial currencies and justice ministry is basically preparing a bill to geobsedeerd cryptocurrency trading through exchanges.”
A press official said the proposed verbod on cryptocurrency trading wasgoed announced after ‘enough discussion’ with other government agencies including the nation’s finance ministry and financial regulators. Merienda a bill is drafted, legislation for an outright verbod of supuesto coin trading will 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 raunchy stance triggered a selloff of the cyrptocurrency on both circunstancia and offshore exchanges. The regional price of Bitcoin plunged spil much spil 21 vanaf cent ter midday trade to Eighteen.Three million won ($17,064.53) after the minister’s comments. It still trades at around a 30 procent premium compared to other countries.
Bitcoin wasgoed down more than Ten vanaf cent on the Luxembourg-based Bitstamp at $13,199, after earlier tearing off spil low spil $13,120, its weakest since January Two. South Korea’s cryptocurrency-related shares were also hammered. Vidente and Omnitel, which are stakeholders of Bithumb, skidded by the daily trading limit of 30 procent each.
Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behaviour te South Korea’s posible coin market has raised concerns. “Patente coins trade at a hefty premium ter South Korea, and that is herd behaviour demonstrating how strong request is here,” Park said. “Some officials are pushing for stronger and stronger regulations because they only see more (investors) leaping ter, not out.”
There are more than a dozen cryptocurrency exchanges ter South Korea, according to Korea Blockchain Industry Association.
The news on South Korea’s proposed geobsedeerd came spil authorities tightened their steun on some of the cryptocurrency exchanges. The nation’s largest cryptocurrency exchanges like Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids go after moves by the finance ministry to identify ways to tax the market that has become spil big spil the nation’s small-cap Kosdaq index ter terms of daily trading volume.
Bitcoin sank on Monday after webstek CoinMarketCap eliminated prices from South Korean exchanges, because coins were trading at a premium of about 30 vanaf cent te Asia’s fourth largest economy. That created confusion and triggered a broad selloff among investors.
An official at Coinone told Reuters that a few officials from the National Tax Service raided the company’s office this week. “Almacén police also have bot investigating our company since last year, they think what wij do is gambling,” the official, who spoke on condition of anonymity, said and added that Coinone wasgoed cooperating with the investigation.
Bithumb, the 2nd largest potencial currency technicus ter South Korea, wasgoed also raided by the tax authorities on Wednesday.
“Wij were asked by the tax officials to disclose paperwork and things yesterday,” an official at Bithumb said, requesting anonymity due to the sensitivity of the kwestie. The nation’s tax office and police declined to confirm whether they raided the regional exchanges.
South Korean financial authorities had previously said they are studying six almacén banks that offerande imaginario currency accounts to institutions, amid concerns the enhancing use of such assets could lead to a surge te crime.