[2017-12-29] South Korean Government Stressing Over “Irrationally Overheated”

[cybersofts]

South Korean Government Stressing Over “Irrationally Overheated” Bitcoin Market



Bitcoin’s tumultuous December continued this week as the South Korean government expressed concerns at the lack of regulatory control over cryptocurrency exchanges.

The country has been at the forefront of massive cryptocurrency adoption this year and the government has struggled to keep up with developments and trading in the industry, where arbitrage between exchanges is commonplace. Earlier in December, the South Korean government laid out plans to shut down some exchanges in the country and they reiterated those plans this week.

Bitcoin has recently been trading nearly 30 percent higher on South Korean exchanges compared to average international rates, according to Bloomberg. Policy makers seem intent on curbing - or at least slowing - the currency’s enormous popularity. In a press release, the South Korean government expressed its worry over what is being labelled as a cryptocurrency ‘obsession’ in the country:

    “Cryptocurrency speculation has been irrationally overheated in Korea. The government can’t leave the abnormal situation of speculation any longer.”

Plans to wrestle back some control over cryptocurrency trading includes banning banks from providing virtual accounts to cryptocurrency exchanges. Likewise, the government reiterated its authority to close cryptocurrency exchanges, but stopped short of stating its intention to do so.


Market reacts

Given that South Korea is accountable for up to a fifth of the world’s cryptocurrency trade, the price of Bitcoin and Ethereum both tumbled on Thursday, perhaps in reaction to the uncertainty created by the government’s most recent misgivings.

Bitcoin saw a 12% dip in value over 24 hours, dropping from $14,900 to a low of $13,100. However, the market has largely recovered, rising to $14,800 at press time.


Source: https://cointelegraph.com/news/south-korean-government-stressing-over-irrationally-overheated-bitcoin-market

[uslfd]

To be very honest, i don't really understand why korean exchanges are trading constantly a few thousand dollars above international exchanges... why do koreans have such a craze for btc? I really do not understand.

[Irvinn]

This reaction of the South Korean government confirms the assertion that the states will in the future try to curb uncontrolled growth of the bitcoin rate and introduce other measures restricting its circulation in order to reduce some of its negative impact on its economy. Therefore, the expected sharp rise in the price of bitcoin in 2018 may not occur if a number of states unite and take general measures to contain bitcoin.

[olarsson]

https://coinone.co.kr/talk/notice/323/

Details about this information is below
- Underaged-minors: Whole service will not available
- All underaged-minors’ account will be locked after January 5th, 2018 8:00PM (KST)
- All subjected users need to withdraw all asset from January 1st to 5th, 2018..
- Non-Korea-residents (the one who are not live in Korea. Not Koreans who are live in Korea are not in this criteria)
- Korea-residents/ Non-Korea-Residents are decided by usage on mobile phone country, so it may differ by government’s details about the criteria
- KRW withdrawals are now allowed temporary, but will be closed(will notify as soon as possible with following notice).

I have a account on a korean exchange although i live in Europe. The exchange has a limit on withdrawal set to 1000 000 KRW. What will happen with founds that has not been withdrawn until 5 january or some people that are for example on vacation and not updated on the situation? Any ideas?