Bitcoin, the most famous of all crypto currencies, is getting ready for another wild ride apparently, dropping 13% in the last hour to a low of 11,730 (lowest of 2018 so far), before recovering slightly (at the moment of writing) to 12,000
The drop comes after South Korea’s top financial policymaker declared in an interview with a local radio station (TBS) that banning trading on digital currencies was indeed being considered by the government of President Moon. Finance Minister Mr Kim Dong-yeon called it “a live option.”
He did confirm that the decision would need to go through a serious government review before being implemented.
Last week already, the South Korean justice minister’s words stating that the country would probably ban bitcoin and other digital currencies triggered big sell-offs as well as a public outcry as many of the South Korean youngsters are heavily invested in the currency.
The presidential office was quick to rectify at that point that no final decision had been made as yet.
Also in Asia, China announced it would be withdrawing tax benefits for any Bitcoin mining company.
Meanwhile, Europe is also getting ready to regulate the currency, as Germany’s national bank director proposed that crypto currencies would need to be looked at from a global scale, and not just on a national level.
Bundesbank director Joachim Wuermeling: “Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”