Bitcoin Keeps Sliding As This Country Starts Banning Cryptocurrencies
Purchasing Bitcoin will now become harder.
With the nature of cryptocurrencies and how fast the prices can fluctuate either up or down, there's always something new and developing according to analysts. But it's rare that we get momentous news that involves the government and actually influence the future of cryptocurrency more so than price movement.
However, that's exactly what happened earlier today. South Korea has set the standard for cryptocurrency regulations as they just made their first announcement on the country's regulations. Kim Yong-Beom, the Vice Chairman of South Korea's Financial Services Commision, just announced a ban on anonymous crypto-trading and exchanges. He also added that minors and foreigners will be banned from trading and that these rules will be enforced starting January 30, 2018.
According to the vice president, their government worries about the manipulation of market conditions, money laundering and other financial related crimes. They think that the growing cryptocurrency craze is causing leading youth in Korea towards crime. The South Korean government also wishes to dissuade foreigners from investing in their country (as far as cryptocurrency goes). Hence, if they're not Korean citizens, they will be unable to participate in trading.
Finally, all future crypto-investors will need to create an account with their legal name, rather than trading through an anonymous handle. Cryptocurrency exchanges will be shared with banks; and regulators will ensure that all anonymous transactions are refused.
So what does this mean for cryptocurrencies? Although the falling prices have been stabilizing, it's a safe assumption that these regulations won't do Bitcoin's stock price any favours. Whether the regulations set by South Korea are good or bad, just the fact that one of Asia's biggest markets is now controlled will likely cause a commotion before January 30.