The cryptocurrency market is again operating in red amid uncertainty in South Korea. The South Korean government said on Thursday that is planning to ban cryptocurrency trading in its territory. One of the most active countries in the crypto market could soon be facing a trading ban. Back in September the South Korean government decided to ban all Initial Coin Offerings in the country.
Cryptocurrency Trading Could Be Illegal
South Korea’s Justice Minister Park Sang-ki said that the Ministry is ‘basically preparing a bill to ban cryptocurrency trading through exchanges.’ Since that moment, the cryptocurrency market, lost around $100 billion dollars in value.
It is not clear how South Korea is going to implement these measures, but a legislation to ban virtual currency trading will require a majority vote of the 297 members of the National Assembly. That could take several months of years before the number is reached.
If the decision is finally confirmed and approved, Cryptocurrency trades could move their investments to Japanese trading sites. The same would happen with enterprises related to the cryptocurrency world.
In December, South Korea announced new cryptocurrency regulations. Anonymous accounts will not be allowed to buy cryptocurrencies. The intention is to regulate the activities around cryptocurrencies. In addition to it, exchanges are implementing tighter Know Your Customer (KYC) and Anti Money Laundering (AML) policies so as to avoid conflicts with new possible regulations or the government.
The Asian government is worried about the volatility of this market and the consequences that it can have on the investors. It has warned several times about the consequences of investing in this market. But the warnings seem to attract more and more investors.
“Some officials are pushing for stronger and stronger regulations because they only see more investor jumping in, not out,” said Park Nok-sun, a cryptocurrency analyst at NH Investments & Securities.
Two of the cryptocurrencies that have been breaking records during the last days, Ripple and Ethereum are also operating down. At press time, Ripple (XRP) has lost 8,11% in the last 24 hours and Ethereum (ETH), after reaching an all time high, is almost 10% down. Ripple, has tried to cross $4 dollars per coin, but it couldn’t make it through the $3.8 dollars’ barrier. Now, Ripple is being traded under $2 dollars. Ethereum has crossed $1,400 dollars some days ago and now is being traded around $1,200.
Bitcoin (BTC), the king of the cryptocurrencies, is registering 2 percent decrease in its price in the last 24 hours. According to coinmarketcap each Bitcoin is worth $13,856 dollars. In September of 2017, cryptocurrency exchanges and ICOs were banned in China. After it, Bitcoin experienced a 40 percent correction.
Litecoin (LTC), Charlie Lee’s creation is also down 1.4%. After crossing the $250 resistance level, it returned to previous prices near $230/$240 dollars. The news arriving from South Korea changed Litecoin’s price, but it didn’t break the triangle in which is being traded.
Other cryptocurrencies like Stellar (XLM) or Tron (TRX) have been skyrocketing during the past week. After these news, they have lost part of their market capitalization, losing positions in the market. Only 21 of the most important cryptocurrencies are operating positively in a day that can define the future of the cryptocurrency market.