South Korea will close cryptocurrency exchanges

The South Korean authorities intend to take measures to limit speculative activity, pushing up the cryptocurrency market, and considering closing cryptocurrency exchanges, writes the Wall Street Journal.

Legislative initiatives that may take effect next month, include a ban on the use of anonymous cryptocurrency accounts, as well as depriving banks of the ability to provide settlement services for anonymous transactions with the cryptocurrency, the report said the South Korean government.

The authorities have warned that crypto-currencies “can be vulnerable to potential fraud and hacker attacks on exchange”.

Last week South Korean bitcoin exchange Youbit announced the cessation of operations and bankruptcy: exchange the second time in eight months, was under attack and lost some part of the reserves of the digital currency.

Exchange rate for bitcoin, according to CoinDesk at 15:40 kV, is $14 187, which is 8% lower than the previous session.

Earlier this month, the course of bitcoin approached $20,000, then lost a quarter of the cost.

South Korea is an important market for the cryptocurrency community. According to analyst firm Coinhills, the share of this country in some moments I had about 25% of global activity in trade bitcoins.

Stir in cryptocurrency alerted the authorities, who warn investors about the risks of increasing speculative activity, as well as the possibility of loss of funds by citizens with a sharp drop in rates of cryptocurrencies or as a result of hacker attacks on cryptocurrency exchanges.

In the message of the South Korean government noted that the authorities “can no longer ignore the abnormal situation with cryptocurrencies” and “unreasonably overheated” the market for cryptocurrencies.

Earlier this month the authorities announced plans to impose a tax on income from capital gains resulting from the trade cryptocurrency, and also to limit the operations of financial companies with cryptocurrencies.

Bitcoin started the year 2017 at about $1 000. Despite the General trend to strengthen this year, repeatedly noted and the rollback rate. In early December bitcoin was worth about $10,000, and within a month he came close to $20 000, before abruptly rolling back before Christmas.