Today the cryptocurrency market has experienced a substantial shock after statements from South Korea that it will no longer allow cryptocurrency trading. The South Korean authorities also led a special action against some exchanges which previously offered cryptocurrency trading as they are suspected of tax fraud.
South Korea is responding to some financial experts’ sentiments that cryptocurrencies’ actual value is unclear, thereby making them unviable as investment tools. The dramatic ups and downs of Bitcoin throughout 2017 and so far this year also speak to that, as the value of the cryptocurrency is oscillating very quickly, unable to stop at a certain value.
South Korea is an important business hub, one of the largest economies in Asia and the world, and has been known as a country with an appetite for cryptocurrencies. That is why its government’s radical position on these tools will have a major impact on the cryptocurrency market and may even inspire similar actions from other concerned states.
Nevertheless, the law to ban cryptocurrency trading is not in effect and it still remains to be seen whether it will pass a vote in parliament.
Bitcoin dropped by more than 10% after this news broke.
