South Korean Government Nearing Ban on Cryptocurrency
Investors and traders in the crypto-market are feeling the pressure of a potential ban on digital currencies in South Korea. The nation’s government has been involved in discussions regarding the rising influence of cryptocurrency over the past few weeks. South Korea stood as one of the optimistic hubs for the crypto-world at the end of 2017 with possession of controlling exchanges and influential tokens. The tide has swiftly turned following a tightening of regulations that may result in the ultimate ban by the end of it all.
National bans against cryptocurrencies are hardly anything new. China was positioned at the top of the market; playing host to nearly 90% of all transactions in the beginning of 2017. Without regulation and protection of parties involved, federal legislation came down closing exchanges and forcing citizens to resume their own trading in Hong Kong. Global super power subsequently spoke out against the use of digital tokens (Bitcoin, Ethereum, Litecoin, etc.) with leading officials claiming the nation would never recognize the tender. Indonesia’s central bank, Bank Indonesia, is also in headlines warning against the dangers of cryptocurrency.
Increasingly negative headlines in the news have cast a shadow over some of the most prominent tokens:
Bitcoin Cash (BCH)
Rumors regarding a potential tightening of the market gained traction late last year, prompting citizen involvement. Involved traders and investors have taken to petitions in hopes of gaining governmental attention. Total signatures are now over 200,000 – a threshold set to be achieved by the end of January. With such clear support for the exchanges, hedging towards a ban may be slowed.
South Korea is not placing a ban just yet, but cryptocurrency values are taking a major hit because of the speculation. Limited utility from tokens keep the market in a very speculative state. A volatile environment has quickly changed the social view of crypto with increasing numbers of sales in the short-term. Many investors who targeted a quick return following the regular spike in prices during November and December have been forced into long positions. Selling at present can help minimize existing losses, but holding maintains the same upside it did a few weeks ago. Until the Korean government officially makes a decision, crypto has an out.