Analysis, Breaking News

Cryptocurrency Markets Down 10% On Misleading News of South Korea Trading Ban

Cryptocurrency Markets Down 10% On Misleading News of South Korea Trading Ban

Cryptocurrency markets are down 10% on the false news that cryptocurrency exchanges will be shut down by the government. The price of Bitcoin fell to as low as $12,600 and Ripple was down 25%.

The cryptocurrency market hit a high of $740 billion in the past 24 hours before dropping 10% on rumors of South Korea banning all trading.

This is the second time in the past few weeks when misleading news out of South Korea has sent the crypto markets down double digits.

South Korea’s justice minister Park Sang-ki stated in quotes reported by local publication Yonhap News:

“The ministry is preparing legislation that basically bans any transactions based on a virtual currency through the trading floor. We have grave concerns about [the craze over] virtual currency and [a shutdown] would be one of the goals we are aiming for.”

Park further elaborated that he is concerned South Koreans have an unhealthy relationship with cryptocurrency, stating:

“It has started to resemble gambling and speculation. The fact that media have used the phrase ‘Kimchi premium’ reflects foreigners’ assessment that the Korean market is abnormal.”

Accurate Reporting or Spreading FUD?

Many people on Twitter are convinced that these quotes are being taken out of context by the mainstream media and that the South Korean government wants to further regulate but not ban cryptocurrency trading entirely.

CNBC Cryptotrader host Ran Neuner further elaborated that the government will be focusing on regulation and not an out-right ban.

Reuters even mistakenly reported that South Korea’s largest exchange, Bithumb, was raided by police:

The cryptocurrency market in South Korea is estimated to account for 20-25 percent of the global trading market. The country is home to over 20 currency exchanges.

Disagreement Within the Government

Countering the South Korean Justice Minister, the South Korean MInistry of Strategy and Finance emphasized that it does not agree with the proposal, stating:

“We do not share the same views as the Ministry of Justice on a potential cryptocurrency exchange ban.”

It remains to be seen exactly what additional regulation will be enforced upon South Korean crypto traders but, if anything, it is a reminder how misleading statements taken out of context can easily affect the cryptocurrency markets.

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Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before making any investment decisions. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Nate Whitehill Author

Nate Whitehill

Nate Whitehill is the co-founder and CEO of CryptoSlate and has been a cryptocurrency investor since 2015. Nate has a deep interest in how blockchain technologies will transform a multitude of global industries over the next decade.

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