Given the recent volatility of bitcoin and its rapid recovery, the South Korean government is concerned about the lack of regulatory control of cripture.
This year the country was on the brink of mass adoption of cryptocurrency, which the government tried to keep pace with developments and trade in the industry, where arbitrage between exchanges has become commonplace. Earlier in December, the South Korean government was planning to close some of the crypto currency exchange. The information was confirmed this week.
According to Bloomberg, bitcoin was recently trading at Korean markets at 30% higher than the average international rates. Politicians are going to hold back or slow down the growing popularity of the currency.
In a press release, the South Korean government expressed concern about the “cryptocurrency obsession” in the country:
“Cryptocurrencies are developing excessively high rate in Korea. The government cannot ignore such an abnormal development.”
Plans to control the trade of virtual currencies include the ban on banks to provide accounts to kryptomere. The government reiterated its authority on the closure of cripture.
The market reacts
Given that the share of South Korea accounts for 1/5 of the world of cryptocurrency trading, bitcoin and Ethereum fell on Thursday, perhaps in response to the uncertainty caused by recent government actions.
Bitcoin fell by 12% in 24 hours, sliding from $14 900 $13 100. However, the market rebounded. At the time of publication of this article a bitcoin was trading at $14 500.