On January 10, the Minister of Justice of South Korea announced that the Government is considering a proposal to close all crypto-exchange exchanges in the country. This news seriously shook the rate of the first cryptocurrency: now bitcoin is trading at $ 13,453, according to Coinmarketcap.
At a press conference, Sang-ki Park stated:
“The Ministry of Justice is preparing legislation that prohibits any transactions with crypto-currency on trading floors. We have serious concerns about the general entrainment of citizens with virtual currency, and stopping the activities of companies providing access to such operations has become one of the goals that we are striving for. “
Note that South Korea today has one of the largest crypto-currency markets in the world, therefore, all decisions made by politicians in this field are instantly reflected in the courses of Crypto-currency. The cost of Ripple has recently decreased by more than 25%, and the cost of Bitcoin – by 17.5%.
Prior to the announcement of this news, the bitcoin rate was trying to stay at around $ 15,000, according to Bitfinex, but after the plans of the South Korean government became known, it dropped to $ 12,000 – 13,000. Bitcoin’s capitalization currently stands at $ 229 billion, the dominance index is equal to 34.1%.
In addition, the largest news agency Reuters reported today that the offices of two popular currency exchange in Korea, Bithumb and Coinone, suspected of tax evasion, have been subject to tax inspection.
“The police are investigating the activities of our company since last year, they think that we are engaged in gambling,” one Coinone employee commented.
Concerning the situation in Korea, the well-known analyst Joseph Young wrote that all such actions on the part of the government are exaggerated, and the activities of not all of the crypto-exchange exchanges in the country will be suspended. Only those platforms that evade paying taxes to the state and do not comply with the rules established by the legislation of South Korea will be subject to closure.
South Korean Blue House (like the US White House) is being bombarded with complaints from citizens about the Ministry of Justice's premature statement on possible crackdown on #cryptocurrency trading.https://t.co/Mo3f0KBbIl
— Joseph Young (@iamjosephyoung) January 11, 2018