Amid all the hue and cry around cryptocurrency, the government of South Korea have imposed regulations enforcing that all accounts reveal their true identities. Over the past few months, there have been heavy investments in cryptocurrency, and the government has seen some speculative trading. These regulations will help the government stop all malpractice around trading in South Korea.
As soon as this news came out, the value of Bitcoin slid by 12%, and Ethereum dropped by 6%. In a statement issued by the South Korean government, they said, “Cryptocurrency speculation has been irrationally overheated in Korea. The government can’t let this abnormal situation of speculation go on any longer.”
Some sources have also indicated that this move will make it difficult for North Korea to breach South Korea’s crypto markets. These new regulations are not as simple as they look, but it takes away one important feature, a value proposition that cryptocurrencies offer – anonymity. The government also has a factor to worry about. They think that having such regulations might compel them to legalizing them for regular people.
Speaking on this revelation, Chairman of the Korean Fintech Industry Association S.G. Lee said, “It’s really tricky for the government. They are worried about giving a wrong perception to the people.”
The crypto market has been heating up, as there are individuals who are making lot of profit amidst this speculation. The South Korean government has tried to cool down the market situation, and have clearly indicated to investors that if needed, they will come down hard on cryptocurrencies.
Lately, there have been instances of losses after cryptocurrencies were lost to malicious hackers. Approximately $35 million was lost by South Korean crypto exchange YouBit.