Bitcoin sinks 14pc below US$13,000 after South Korea mulls ban on cryptocurrency trading
South Korea intensifies crackdown on speculative trading in virtual currencies in the country, citing “great concerns”
Bitcoin prices plunged on Thursday by nearly 14 per cent, after South Korea intensified its crackdown on virtual currencies and considers a ban on all cryptocurrency trading in the country, one of the world’s largest bitcoin markets.
Bitcoin opened at US$14,890.72, but then quickly started its decline to a low of US$12,845.71 at noon, according to an index by specialist virtual currency news site CoinDesk that tracks prices from exchanges such as Bitstamp, Coinbase and Bitfinex.
By 5pm Hong Kong time, it was trading at US$13,723.94, down 7.8 per cent.
Earlier in the day, South Korea’s justice minister Park Sang-ki said the government was preparing a bill to ban all cryptocurrency trading in the country, which is a key market for bitcoin and ethereum trading.
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Park cited “great concerns” about virtual currencies.
The comment from Park came after South Korea’s largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion, according to a report by Reuters.