Bitcoin price plunges as South Korea announces plan to ban it

Price plunge: Bitcoin
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Robin de Peyer2 February 2018

The price of Bitcoin plunged after South Korea announced a plan to ban the trading of cryptocurrencies.

About 10 per cent was wiped off the value of Bitcoin – the best known cryptocurrency – after the announcement by the South Korean government.

It said there were “great concerns” over digital currencies, after several cryptocurrency exchanges in Seoul were raided as part of a probe into alleged tax evasion.

Bitcoin and other digital cryptocurrencies have seen prices surge in recent months, though fluctuations in their values have been significant.

"There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," said South Korean justice minister Park Sang-ki.

Legislation for an outright ban of virtual coin trading will require a majority vote of the total 297 members of the country’s National Assembly, a process that could take months or even years.

Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behaviour in South Korea's virtual coin market has raised concerns.

Indeed, bitcoin's 1,500 percent surge last year has stoked huge demand for cryptocurrency in South Korea, drawing college students to housewives and sparking worries of a gambling addiction.

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