South Korea Looks to Stamp Out Bitcoin Tumbles

After the announcement from South Korea that it is looking to stamp out some cryptocurrency exchanges, bitcoin suffered another decline, falling 26 percent to below $14,000.

South Korea who accounts for over a fifth of global trading in cryptocurrencies and is No. 4 for all transactions may suffer a blow after the Office for Government Policy Coordination issued a new warning. A proposal of a ban on the offering of virtual accounts by banks to crypto-exchanges together with the requirement of real-name transactions. This follows the filing of one South Korean exchange for bankruptcy. A spokesman for the government said that the abnormal and irrational speculation cannot be left any longer, adding about the concerns of the impact it will have on the Korean youth.
After the release of the statement by the South Korean Government Bitcoin tumbled to a low of $13,500 or 11 percent. In Seoul, Bitcoin was trading at a 30 percent premium over the current international rates, a sign that it is a country’s obsession.

Last week Singapore’s monetary authority issued warnings about speculative mania surrounding cryptocurrencies, saying that currency buyers are at a risk of losing all their money.
Head of trading for Asia Pacific at Oanda, Stephen Innes said that regulators globally and not only in Asia are starting to address their concern. He added that a complete drop in crypto will have a downside on the economy and regulators will have to come to terms with the downside.

Stocks with ties to cryptocurrencies are also being affected with Pareteum Corp. falling 26 percent together with Digital Power Corp and LongFin Corp both falling 6 percent following the South Korea’s announcement.

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