Bitcoin Banned in South korea -Coinmarketcap delisted Won Exchanges

Source : Bitcoin Banned in South korea -Coinmarketcap delisted Won Exchanges

Bitcoin Banned in South korea - delisted Won Exchanges
Bitcoin tumbles as South Korea prepares trading ban
South Korea is planning a bill to ban cryptocurrency trading as a clampdown on virtual currencies gathers pace in one of world’s most exuberant markets.
“There are great concerns regarding virtual currencies and [the] justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” said Park Sang-ki, South Korea’s justice minster. 
Any bill would need to be passed by the country’s National Assembly but, if successful, would effectively end trading of cryptocurrencies in the world’s third-largest market.
Bitcoin fell as much as 14 per cent to a low of ,800 on the exchange in afternoon trading in Asia following the comments.
Fevered demand has driven South Korean traders to pay premiums of more than 40 per cent over international rates for bitcoin, but raised concerns among officials that buyers could be exploited.
“Cryptocurrency trading becomes akin [to] speculation and gambling . . . it is a risky trading form which can inflict serious financial damage on citizens,” said Mr Park. 
Earlier in the day, South Korean tax authorities raided the country’s main cryptocurrency exchanges — Bithumb and Coinone.
“They asked for some data such as cryptocurrency trading volume, our exchange’s sales and whether we are paying corporate tax well,” said a spokesman for Coinone, a major Korean cryptocurrency exchange. 
Regulators had earlier said they were considering taxing capital gains from cryptocurrency trading. A ban on trading would make such a move irrelevant.
Coinone has been under police investigation since late December over its margin trading service, which allows traders to short digital currencies. “Police see this as gambling and local authorities have also advised us to stop the service as they think it fuels the market frenzy,” said the spokesman. 
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Coinone said margin trading of digital currencies was legal but it stopped the service on December 18 on the government’s recommendation, and following in the footsteps of other local cryptocurrency exchanges
But some analysts said the government’s crackdown on cryptocurrency speculation could make digital currencies more valuable in South Korea, by restricting locals’ access to them. 
“The regulatory moves could actually boost the scarcity value of virtual currencies and fuel demand further,” Moon Hong-chul, an analyst at DB Financial Investment, said in a recent report. 
The South Korean government announced a string of measures in recent weeks, including a ban on bitcoin futures trading and anonymous digital currency accounts. It banned local financial institutions, minors and foreigners from investing in digital currencies. 
The country’s financial regulators are also looking into six local banks that offer virtual currency accounts to institutions to see if they are abiding by anti-money laundering rules and use real names for accounts, after South Korea’s chief warned of “irrationally overheated” trading of virtual currencies last month.

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