Why is Korea suddenly afraid of Bitcoin?

The world's 3rd largest cryptocurrency market suddenly made harsh proposals to Bitcoin and threatened to close exchanges in this country to avoid risks.

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Despite being technologically sensitive, South Korea may be about to take some fatal blow to the digital currency market collapse under the domino effect. According to SCMP, observers in Korea told the government of this country many reasons to be afraid of Bitcoin.

A few days ago, the South Korean justice minister said the country was considering shutting down digital currency exchanges. This announcement immediately shocked global investors.

Before that, Pareteum's stock price doubled as the internet service provider claimed to support blockchain technology, the foundation of Bitcoin and cryptocurrencies in general, but then quickly fell 25% following the news. data from the Minister of Justice of Korea.

Hong Nam-ki, South Korea's minister of policymaking, said that the country's concern with cryptocurrencies is "anomalous", similar to the words of Prime Minister Lee Nak-yeon, who once spoke for that digital money will destroy young Koreans and lead to "social problems".

After the message from the authorities, the price of Bitcoin in Korea on the Bithub floor decreased by 13.8%.

Not stopping there, the two biggest banks in kimchi, Shinhan and KB Kookmin, also announced to stop the credit exchange program for Bitcoin, according to Korea Biz Wire. The decision comes from a December ban on buying and selling Bitcoin in the form of futures contracts and a draft emergency banning minors, foreigners, and banks from buying and selling Bitcoin.

Despite the negative signals from the authorities, small investors and some large Korean companies still act on their own. Samsung said it will apply blockchain platform to track shipping orders in real time.

Kakao, which owns the popular messaging app in South Korea, acquired Dunamu, a finance startup to open its own exchange in October under the name Upbit. Videogame giant Nexon is already the largest shareholder of Korbit, South Korea's third-largest cryptocurrency exchange channel.

If the Korean government continues to take tough measures, those projects could be killed in its infancy, making Bitcoin less attractive and causing a domino effect in Asian countries. Trading information is appreciated: btc to paypal

South Korea is the third largest market for Bitcoin trading after Japan and the US, accounting for about 20% of total global transactions, and the country's "change of heart" also places the crypto market into a difficult position.

The fact that Korea "suddenly feared" Bitcoin made Western observers make many assumptions, including influence from neighboring Korea. North Korean hackers are believed to be behind the attacks on South Korean crypto exchanges in the summer of 2016. Youbit, a major exchange was hacked and took away an equivalent amount of Bitcoin. 35 million USD.

Although the Korean government is urgently restraining Bitcoin, in the eyes of observers, investors should not rush to react, because the above proposals should be "green lighted" by the National Assembly. "Governments often don't like risk. From an economic perspective, I think it's the right decision. But right now, there's no rush," said Yoo Byung-joon, professor of business administration at the University. National Seoul, comments.