The government of South Korea intends to take measures to limit speculative activity that is pushing the market of cryptocurrencies, reports The Wall Street Journal. In particular, they are considering closing the crypto exchanges.
Legislative initiatives, which may come into force as early as next month, call for the introduction of a ban on the use of anonymous cryptocurrency accounts. The new regulations may deprive banks of the ability to provide settlement services for anonymous transactions with cryptocurrencies, the South Korean government said. The country's authorities warn that cryptocurrencies “may be vulnerable to potential fraud and hacker attacks on stock exchanges.”
Last week, the South Korean currency exchange Youbit announced the termination of its operations and bankruptcy: the exchange for the second time in eight months has undergone a hacker attack and lost some of its digital currency reserves.
The price of Bitcoin fluctuates around $14,187, which is 8% below the level of the previous session. Earlier this month, the rate of cryptocurrency was approaching the $20,000 mark, after which it lost a quarter of its value.
South Korea is an important market for the crypto community. According to the analytical company Coinhills, the share of this country at some point accounted for about 25% of global activity in Bitcoin trade.
The Bitcoin hype has alarmed the country’s authorities, which warn investors about the risks of speculative activities, as well as the possibility of losing funds.
The South Korean government's message says that the authorities "can no longer ignore the anomalous situation with the cryptocurrencies" and the "unreasonably overheated" cryptocurrency market.
Earlier this month, the country's authorities announced their intention to impose a tax on capital gains generated from the trade with cryptocurrencies and to limit the operations of financial companies with cryptocurrencies.
Bitcoin began in 2017 at around $1,000 and has gained over 1400% until today.