Several Cryptocurrencies’ Prices Fall After South Korea Announces A Ban. Global cryptocurrency market falls a few days after the South Korean announcement. Authorities in S. Korea announce that they are going to ban. Prices of major digital coins fall following the government of South Korea ban. Among them that feel the hit are Bitcoin, ethereum, and Ripple.
According to financial observers, the hit is too much. Experts say that over $106 billion goes into thin air after the announcement. They warn that there are rough times ahead. Their argument is this mere announcement. What will happen if the authority imposes the ban? The news about South Korea preparing to ban the trade of digital coins is everywhere. Most digital altcoins are trading at the ‘mercies’ of S. Korea. If this country issues such a warning, there is the reason to shrink.
This announcement comes out to the public on Wednesday. By Thursday, Bitcoin, Ether, BTC Cash,Ripple, and others are shaking. If in the end, the country imposes the rule, many investors will lose. For now, it is an announcement, with the aim of preparing various investors. After the news, things change very fast. At about 7:25 AM London time, bitcoin loses 6 percent. Ethereum that is gaining a lot lately falls by 11 percent.
The other coin that suffers following the news is Ripple. This coin takes a 9 percent tumble. On Wednesday, all the three main coins are performing high in the market. In a statement to the press on Thursday, South Korean Justice Minister says they are preparing a bill. Park Sang-ki says that the government is stopping at nothing. It will ensure everything about digital currency goes as the government wants.
“We are preparing a bill to ban cryptocurrency trading through exchanges,” says Park. Also, this sudden fall in prices of first digital coins is second. The first time is when bitcoin hits its highest in December. During this time, the digital altcoin hits $20, 000.
But after less than 24 hours, it falls back to $18, 000. It holds at the level for a while before again falling further down to $13, 000 in some exchanges. But it is again regaining. Currently, the coin is trading at $15, 500. On January 4, 2018, Ripple hits an all-time high of $3.84. But after the news of S. Korea imposing a ban, the coin loses over 50%. South Korea is a major stakeholder in the cryptocurrency market. The country holds some 6 out of 12 percent of the total market. With this in mind, you can see how much the country affects the market.
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Earlier in the week, CoinMarketCap takes a step to remove some exchanges from South Korea. The reason for doing this is some trades are too divergent. The exchanges that CoinMarketCap removes offer different prices. They are either too high or too low. Either way, the companies are not like others.
International regulators are following what S. Korea is doing. U.S. Senate Banking Committee is scheduling a meeting next month. The meeting aims to meet with Securities and Exchange Commission. Also in the conference will be Commodity Futures Trading Commission. It is likely that they’ll discuss the global cryptocurrency market.