After South Korea bans entry of cryptocurrencies, Bitcoin suffers another fall

Recent rumors already indicate that South Korea would not allow cryptocurrencies to enter the country, which caused the price of Bitcoin to fall.

Now, however, the country’s Minister of Justice has declared that South Korea is developing a project that aims to ban all cryptocurrencies on its territory. Park Sang-ki stated at a press conference:

"There are big concerns about virtual currencies and the justice ministry is basically preparing a bill to ban crypto trading through exchanges."

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In addition, the minister said that the ban is being worked out in conjunction with the Ministry of Finance and the country's financial regulators. However, approval of the bill requires a vote by the 297 members of the National Assembly.

Even though the ban may take some time to happen, the news ended up destabilizing the price of Bitcoin, with a drop of 21%, and going to be worth $ 12.800.

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The analyst at NH Investment & Securities commented that such a manifestation from South Korea could further affect the price of Bitcoin and cause a “herd effect”:

"Virtual currency trading has been very big in South Korea. Some officials are calling for stronger and stronger regulations because they just see that investors are not jumping out."

Bithumb, the largest Bitcoin operator in South Korea, said through an official that tax inspectors were at the company's headquarters.

"The tax officials asked us to deliver documents and other information yesterday."