It’s been an interesting week for cryptocurrencies and Bitcoin in general.
Hot on the heels of the effects we saw after the CBOE and CME futures launches, yesterday marked another moment where Bitcoin and other cryptocurrencies took a dive south.
This time it seems the drop was caused largely by news (and somewhat hyperbolic, click-baity headlines) that the South Korean government would be placing more restrictions on how exchange operate. Specifically, they are moving to require real names/identities (think: Know Your Customer), as well as other measures designed to reduce the risk of speculation.
What has spurred this move seems to be a view by the government that there is too much of a frenzy around cryptocurrencies and that it feels more regulation is needed to protect its citizens:
Officials share the view that virtual currency trading is overheating irrationally … and we can no longer overlook this abnormal speculative situation.
Additionally, South Korea is looking to clamp down on illegal activities, like money laundering and price manipulation tactics stating the following:
We will … resolutely respond to such crimes by slapping maximum sentences possible on offenders,” the government said, vowing to “leave all policy options open, including closure of a cryptocurrency exchange when deemed necessary.
With Bitcoin and cryptocurrencies breaking through into the mainstream this year, South Korea joins numerous other countries and financial analysts who warn of the highly speculative nature of cryptocurrencies.
Always check with a financial consultant before investding, and as always, buyer beware.
If you got something useful from this post, please share it on Facebook and Twitter so your friends can benefit from it too.
Donations and support are always greatly appreciated
BTC Wallet: 1LyutLaQ3sufbFcETue6kYbQHqZvYbvAD9
ETH ERC20 Wallet: 0xca0dd607339edee021fb95e4a63fc21f13f4de2f
LTC Wallet: LaPhoXcybZ3hHNs7jFeBo28uYXpYZe45w8
DASH Wallet: XtHavbmxb6gQixkBKXq2igQ2GhLUjLCh88
DOGE Wallet: DD2PN95XBgUvwRf5jbGV78d6nWEgVwjm4L
TL;DR Disclaimer: We are not financial advisors. We don't know what we're talking about. Do your own research and consult with a professional broker or advisor. Trading is risky. Investing is risky. We may receive small rewards if you follow links on our site. We endorse nothing. You are responsible for you.