Bitcoin prices recently tanked due to the potential crackdown of bitcoin exchanges in Korea by the state. However the bill drafted by the Ministry of Justice which would certainly have seen bitcoin prices tank significantly, has been put on hold as the government office coordinates views between each office and gains a much more detailed insight into the status of crypto and potential the ban would have on trade and finance.
As seen in the statement provided below, the President remains open to potential alternatives to a proposed hard ban on crypto in the country. Despite a situation where the state may outlaw all crypto and make transactions illegal, crypto markets as a whole may drop in value considering the nation accounts for well over $1 billion worth of trade on a daily basis.
“Justice Minister Park Sang-ki’s remarks regarding the shutdown of cryptocurrency exchanges is one of the measures that have been prepared by the Justice Ministry, but it is not a finalized decision and will be finalized through discussion and a coordination process with each government ministry.”
Some traders are also concerned by the ambiguous position current statements have left bitcoin in as coinmarketcap took bitcoin exchanges out when calculating bitcoin prices. Sadly this had the effect of causing panic selling as prices were shown much lower than actual levels. Perpetuating fears of a bigger bitcoin correction, some traders began to sell causing prices to fall further over this week to lows of $13000. The removal of Korean exchanges saw Bithumb’s volume not being counted by the market watch site.
To conclude, while the ministry of justice has been against the use of crypto, the Ministry of finance has signaled a softer stance to the digital currencies being traded. This split in government is likely to yield interesting results as the future of crypto remains in balance. For the time being, bitcoin and other crypto remain legal and unrestricted in Korea despite a threat of a potential blanket ban being introduced.