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South Korean Government Stressing Over “Irrationally Overheated” Bitcoin Market

Dec 29, 2017 Posted /  3301 Views

South Korean Government Stressing Over “Irrationally Overheated” Bitcoin Market

Bitcoin’s tumultuous December continued this week as the South Korean government declared concerns at the lack of regulatory control again cryptocurrency exchanges.

The country has been at the lead of huge crypto currency adoption this year, and the government has fought to keep up with developments and trading in the industry, where arbitrage between exchanges is commonplace. Earlier in December, the South Korean ministry laid out plans to shut down some exchanges in the country, and they restated those plans this week.

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Bitcoin has recently been trading nearly 30 percent higher on South Korean markets compared to average international rates, according to Bloomberg. Policy makers seem intent on curbing - or at least slowing - the currency’s enormous popularity. In a press release, the South Korean government expressed its worry over what is being labeled as a cryptocurrency ‘obsession’ in the country:

“Cryptocurrency speculation has been irrationally overheated in Korea. The government can’t leave the unusual condition of speculation any longer.”

Plans to tussle back some control over cryptocurrency trading involves banning banks from providing virtual accounts to cryptocurrency markets. Likewise, the government reiterated its authority to close crypto currency exchanges but stopped short of stating its intention to do so.

Market reacts

Given that South Korea is liable for up to a fifth of the world’s crypto currency trade, the price of Bitcoin and Ethereum both tumbled on Thursday, perhaps in reaction to the uncertainty created by the government’s most recent misgivings.

Bitcoin saw a 12% dip in value over 24 hours, dropping from $14,900 to a low of $13,100. However, the market has mostly recovered, rising to $14,800 at press time.

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Tags: Bitcoin Market South Korea

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