Bitcoin crackdown: South Korea prime chaplain Lee Nak-yeon is drafting new laws to stifle bitcoin
South Korea intention be clamping down on cryptocurrency trading and enforce measures to regulate rumination.
In an attempt to stifle cryptocurrency trading, South Korea will ban break of anonymous cryptocurrency accounts, stop banks from settling bitcoin tit for tat trades between parties that are unidentified, as well as create new laws to add regulators to close virtual coin exchanges if necessary.
The measures be dressed been floated as part of efforts to stamp out market speculation in a fatherland that is believed to make up a significant portion of global cryptocurrency occupation.
Bitcoin was down at nearly 8 per cent on the day at $14,191 (£10,552) in Thursday morning swop, having recovered slightly from the day’s low of $13,672 (£10,168), according to prices inventoried on CoinDesk, as investors were spooked by the announcement.
Bitcoin approaches listed on the Chicago Mercantile Exchange (CME) were also trading tone down, with futures expiring in January down $400 (£297) at $14,690 (£10,924), while those breathe out in March were down $610 (£453) at $14,330 (£10,655).
South Korea is also ponder oning whether or not to shut down the nation’s bitcoin exchange.
The South Korean regime said in a statement: “The government had warned several times that practical coins cannot play a role as actual currency and could dnouement develop in high losses due to excessive volatility.”
Earlier this month, Seoul had already proffered taxes on cryptocurrency transactions, banning underage investors and foreigners from cleft trading accounts on cryptocurrency exchanges.
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South Korea is also taking into consideration a capital gains tax on cryptocurrency trading, and has so far banned the use of Initial Coin Donations (ICOs) which allow investors to exchange cryptocurrencies like Bitcoin for proprietary “thinks” or “tokens” linked to a specific firm or project. China has also disallowed ICOs.
After Japan and the US, South Korea is the world’s third-largest demand in bitcoin trading. Roughly the country has two million virtual currency investors equating to sternly one in every 25 citizens.
Trading prices of most cryptocurrencies are much ripe on the South Korean exchange than they are in other countries.
South Korea has been so enamoured with the cryptocurrency that a new qualifications has been coined – “bitcoin zombie”.- to describe a person who checks the worth of bitcoin around the clock, whenever they can.
Prime On Lee Nak-yeon has warned against the cryptocurrency
Prime Minister Lee Nak-yeon on guarded the popularity of the cryptocurrency could lead to “serious distortion or social pathological incidents” as well influencing younger people in to illegal activities like knock out dealing.
A number of investors have also submitted a petition against balancing cryptocurrencies which currently has 17,000 signatures. It needs 200,000 to profit a mandatory response from the government.
Bitcoin’s price drop pursues notable losses last week, when the cryptocurrency fell 36% from scarcely $20,000 to around $12,137 in just five days.
It was prompted by newsflash that one of South Korea’s cryptocurrency exchanges was going bust in the wake of a cyberattack, while Coinbase – another commerce in the US – said it was opening an investigation into sharp price increases.
Regard for its continued price pains, Bitcoin is still up on the year, having started at about $900 in January.
The launch of bitcoin futures by both the CME and CBOE at the cracker this month following US regulatory approval has been hailed by patrons as helping to legitimise the use of the virtual currency.
It is a divisive issue among investors, with Goldman Sachs reportedly accouterment up to enter the market just months after JP Morgan boss Jamie Dimon labeled Bitcoin a “fraud”.
However, Christine Lagarde of the International Monetary Mine money said “it may not be wise to dismiss virtual currencies”.
Britain’s own Treasury has publicized plans for closer scrutiny of the cryptocurrency as part of EU-wide plans that wish require online platforms that trade in Bitcoin to carry out due diligence on guys and report suspicious transactions.