“There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges” Sang-ki at a press conference.
The planned proposal of the South Korean government to ban cryptocurrency trading comes at a bad time when global crypto prices are at their lows and the least the markets need right now is news that will create FUD. South Korean police and tax authorities also raided the 2 of the biggest local cryptocurrency exchanges on allegations of tax evasion.
It is also said that this proposed cryptocurrency ban comes after much discussion and deliberation with governmental authorities such as the ministry of finance and financial regulators.
According to reports from reuters, the government and the finance ministry have been struggling to find ways of taxing cryptocurrencies, but it has increasingly been difficult.
“Some officials are pushing for stronger and stronger regulations because they only see more investors jumping in and out” Park Nok-sun
This is nevertheless, only one of the many South Korean headlines that have occurred this week. On Monday, coin market cap removed South Korean exchanges from their price prediction models which saw Bitcoin and other cryptocurrencies drop in price.
It is also said that the proposed bill by the South Korean government saw the price of Bitcoin drop more than 4 % to $18,968.42 though this price is much higher (about 30%) to what other countries are trading at.
Also, South Korean police raided Bithumb and Coinone yesterday and today respectively. These raids were due to suspicions of tax evasion practices by these two exchanges.
“Local police also have been investigating our company since last year, they think what we are doing here is gambling” Coinone.
What are your thoughts on this proposal from the South Korean government? If it does go through, what are your thoughts on how it will impact the market?
Let us know in the comment section below.