On the background of numerous reports about the plans of the South Korean government to restrict the cryptocurrency trading market dipped significantly.
According to the website CoinMarketCap, by mid-day 11 January, the bitcoin fell by 8% to $13 200, some exchanges temporarily dropping below $13 000. Market capitalization of crypto-currencies at the time of publication is $660 billion, the share of bitcoin accounts for approximately 34%.
The depreciation occurred after the circulation of the statement of the Minister of justice of South Korea Park sang-Ki (Park Sang-ki) on the consideration of the issue regarding the closure of cryptocurrency trading.
Some media started to disseminate information that the South Korean government plans to ban cryptocurrency trading. The South Korean authorities had indeed taken a tough stance against the cryptocurrency, including the prohibition of the behavior of the ICO. However, according to local sources, the authorities only intend to enter the industry of cryptocurrencies in the regulated field, and not to prohibit the sale or bitcoin. So the rumors about a complete ban or significant restrictions should be considered unofficial.
If the South Korean government had intended to ban the cryptocurrency trading, it would not let go of the various regulatory frameworks. So, in December, was formed by developing rules for business and investors task force.
Regulatory rules that South Korea intends to implement by January 20 will prevent the loss of non-accredited investors due to the highly volatile cryptocurrency; not to allow the positioning of adjustable kryptomere as speculative platforms for accredited investors; to require banks and exchanges to prohibit non-working investors and foreigners to open a trading account and temporarily suspend investments in the cryptocurrency institutional and retail investors.
Representatives of the Ministry of strategy and Finance of South Korea claim that the first time I heard about the ban on the cryptocurrency trading by the Ministry of justice from the media. Target group participating in the Central Bank, Ministry of Finance, Ministry of justice and other authorities disagree with him.
«We do not share the views of the Ministry of justice on the potential ban on the use of crypto-currencies,» – said in the Ministry.
According to analyst Joseph young, of the statement on the prohibition of trafficking in capovalle too exaggerated. The South Korean authorities intend to stop only the activities of kryptomere that do not comply with financial regulations, he said.
Yang also said that the government is criticizing the citizens dissatisfied with the statement of the Ministry of justice.
According to the Creator of litecoin, Charlie Lee, all this is nothing more than spreading fear, uncertainty and doubt (FUD), which often spread by manipulators and significantly affect the market in the right way. He compared the news with statements about banning bitcoin in China, kotolynov times predicted, but never happened.