South Korea Plans Measures To Curb Virtual Currency Speculation
Dec 30 2017
Bitcoin climbed as much as 8.3 percent tin Asian trading, before dropping back to trade 1.9 percent higher at $14,211 at 8:21 a.m.in NY, composite Bloomberg pricing showed.
In addition, the newregulation will "leave all policy options open, including closure of a cryptocurrency exchange when deemed necessary".
Bitcoin appeared to find a bottom on Friday, rebounding above US$14 000 after moves by South Korea to curb speculation and protect retail customers sent the cryptocurrency sliding yesterday. The price of Bitcoin and other cryptocurrencies have been consistently higher in Korean exchange than in foreign markets.
The South Korean government is planning to implement restrictive laws that will reportedly include a ban on opening anonymous cryptocurrency accounts to crackdown on money laundering and financial fraud.
Both investors and exchanges seem skeptical about a complete trading ban here considering daily transactions have already reached a whopping 7 trillion won.
Minister Hong Nam-kisaid the government "can't let this abnormal situation of speculation go on any longer", speaking after a meeting of vice ministers from related ministries.
TechCrunch has a slightly different take, suggesting that the move to ban anonymous cryptocurrency accounts will have the fortunate side-effect of making it harder for North Korea to infiltrate the South's crypto markets.
The government also warned it could shut down exchanges if the toughened measures do little in cooling down the current investing frenzy. But they see a price adjustment unavoidable for some time.
Asian markets play a fateful role in cryptocurrency trading.
The below intra-day chart of Bitcoin shows that the December 22nd low remain as a major focal point and as long it this support holds, the path of least resistance remain to the upside.