Bitcoin price tumbles after South Korea joins cryptocurrency crackdown

Ripple price leaps over $1.20 on South Korea trading

South Korea is one of the centers of bitcoin trading in the world with its exchanges accounting for a mammoth share of the global trade in bitcoin, monero, ripple, ethereum among others.

The South Korean government is planning to implement restrictive laws that will reportedly include a ban on opening anonymous cryptocurrency accounts to crackdown on money laundering and financial fraud.

Bitcoin climbed as much as 8.3 percent tin Asian trading, before dropping back to trade 1.9 percent higher at $14,211 at 8:21 a.m.in NY, composite Bloomberg pricing showed. Such widespread interest and related speculation have led to price premiums on Korean exchanges that are anywhere from 15% to 20% higher than the global average. So, it may be a bit unfair to think that if the currency is supported by retail clients it has no value and if it is supported by institutions than it has more value. The country is determined to curb the speculative market and it would take measures to stop and review various crypto-exchanges.

The virtual currency speculation has irrationally overheated in Korea, the government said. According to the Wall Street Journal, the government's new measures will ban anonymous accounts being used on exchanges and will require banks to keep records of the identities of customers when it handles settlement services for cryptocurrency trades. He said the government "can't let this abnormal situation of speculation go on any longer". Many of them believe that there is a huge bubble in the market and this can burst at any point in time. The Long Island Iced Tea Corp - an iced tea company that changed its name to Long Blockchain and saw its stock price rise over 200 per cent - saw its price dip by about six per cent after the news from South Korea that had nothing to do with iced tea.

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