Rumors that the South Korean government would ban Bitcoin and exchanges of criptomoedas took the price of Bitcoin down the hill this morning.
South Korea will not ban Bitcoin
Reuters posted an article on Dec. 27, claiming that the South Korean government would enforce new regulations and shut down the criptomoedas exchanges. However, hours later, Reuters corrected the news by saying that the South Korean government would only close anonymous accounts in some exchanges.
As a result, Reuters was criticized by many experts and analysts, including "I am Nomad," prompting Forbes to publish its earlier article dated December 15, reaffirming that the South Korean government is in the process of regulating the market in order to boost the adoption and further stabilization of the crypto-coins sector in the country.
As reported today Dec. 28, the South Korean government will deactivate anonymous accounts at Bitcoin's exchanges. At an emergency meeting on December 13, the South Korean government and its task force comprised of the South Korean Ministry of Strategy and Finance, the Financial Services Commission, the Ministry of Justice, the Fair Trade Commission and the Supervisory Commission Have revealed that foreigners and minors will be barred from trading Bitcoins.
The foreign investor's ban was also enforced after a group of Chinese people were caught washing millions of dollars and taking advantage of the country's crypto-currency market rates. As the price of Bitcoin in the South Korean market is about 20% higher than the average global price, they brought Bitcoin from China, and sold them in South Korea and sent the Chinese yuan back to their homeland.
The South Korean government has introduced regulations to prevent such activities from occurring in the future and to protect investors. Former South Korean PM Lee Nak-yeon expressed concerns about Bitcoin's craze in the country as high school students and university students began trading Bitcoin daily.
Regulations to buy Bitcoin
Local exchanges, such as Bithumb, the world's second-largest crypto-currency exchange based in Seoul, said it was enthusiastically received because it will allow the local Bitcoins market to stabilize, mature and grow at a faster rate.
It is beneficial for the government to regulate the market for investors to switch Bitcoin and other crypto-currencies directly into the exchanges, not through service providers and third-party intermediaries, leaving investors vulnerable to fraud and ponzi schemes.