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South Korea to Frame New Rules to Control Cryptocurrency Trading

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Published on : Dec 28, 2017

In a bid to control the cryptocurrency trading in the nation, the government in South Korea announced on Thursday that it would levy additional measures to control speculation in the country.

Earlier, quite a few times, the government had warned that virtual coins are not fit to supplant actual currency. It had also warned that given its excessive volatility, it had the potential to cause major losses.

The latest announcement came on the back of unusually high trading prices of most of such alternative currencies on South Korean exchanges. It has been noticed that prices are not so high on other exchanges elsewhere.

Anonymous Cryptocurrency Accounts to be Banned

The announcement, once implemented, would involve a ban on opening an anonymous cryptocurrency account. It would also entail a new legislation giving regulators the authority to shutter virtual coin exchanges when required. As per the announcement, the measure has been suggested by the ministry of justice.

A while back, the highly developed Southeast Asian nation had expressed its intention to impose a capital gains tax on the cryptocurrency trading – a move meant to deal with the problem of excessive speculation in the domain.

So far this year, Bitcoin, the most popular cryptocurrency in the world, has gained over 19 times.

Bitcoin, in South Korea, has seen unprecedented popularity causing widespread participation from students and housewives. As of 0304 GMT, it has traded at $14,384 on Bitstamp exchange, which is in Luxembourg.