Report: South Korea Is Not Banning Bitcoin, But Rumors Drive Price Down

December 28, 2017 6:06 pm Published by

An unconfirmed and later-proven-false Reuters report claimed the South Korean government will ban bitcoin and cryptocurrency exchanges, which led to a drop in bitcoin prices, Cryptocoinsnews reported.

Several hours later, the Reuters report was corrected when the news agency reported the South Korean government will close anonymous cryptocurrency exchange accounts, which was the plan since Dec. 13.

Reaction was swift as experts and analysts criticized Reuters, the report said, and Forbes going so far as to publish a Dec. 15 article reaffirming the South Korean government is in process of regulating the market to drive adoption and further stabilize the cryptocurrency industry.

Meanwhile, earlier today, the South Korean government announced it will disable anonymous accounts on cryptocurrency exchanges, the report said.

Back on Dec. 13, the report said, the South Korean government and its cryptocurrency task force formed by the South Korean Ministry of Strategy and Finance, Financial Services Commission, Ministry of Justice, Fair Trade Commission, and Financial Supervisory Commission revealed foreigners and underaged investors will be prohibited from trading bitcoin.

The ban became enforced after a group of Chinese traders were caught laundering millions of dollars and taking advantage of the South Korean cryptocurrency exchange market’s premium rates by arbitraging bitcoin, Cryptocoinsnews reported.

Because the price of bitcoin in the South Korean market is around 20 percent higher than the global average price, the traders brought bitcoin from China, possibly from local miners, sold them in South Korea, and sent Chinese yuan back to their homeland, the report said.

The South Korean government introduced regulations to prevent such activities from occurring in the future, and to protect underaged investors from large risks involved in cryptocurrency trading, the report said.

WN.com, Jack Durschlag



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