The price of Bitcoin fell by a significant margin following a ban on making accounts for trades by crypto services in South Korea. The South Korean Financial Services Commission made moves they deemed necessary in order to thwart speculators.
Bitcoin’s price went below $14,000, more than 10% in a single day, according to a service which follows the price fluctuations of this digital currency with the help of four different exchange websites. By noon, the currency slowly rose to $14,000, but that is still more than a quarter down in comparison to its highest price this month.The cryptocurrency is known for price swings and its worth has fluctuated significantly these past few weeks.
It reached a peak in its price of almost $20,000 in the second week of December but then plummeted to almost $10,000. So far, no one has given an explanation for the unexpected drop and quick fall. The Commision from South Korea issued a statement this Thursday saying that new rules will be limiting digital currency exchange services from opening new accounts for customers. The government will now have an option to halt trades or take the exchange completely offline because they prevent these services from making new accounts. The new regulations in question should come into effect somewhere in January of 2018.A representative also stated that from now on, everyone who wants to trade in South Korea will have to use their real-life identity. This is a big blow to the privacy of users and will be an end to anonymous trades in the country.
Moreover, bank transactions will be monitored with the goal of limiting the purchase of Bitcoin and other cryptocurrencies. This comes after the government set rules in place to prevent non-citizens and underage people from owning trading accounts. Although some governments are scrambling to limit the growth of Bitcoin with new regulations and rules, the cryptocurrency has proven to be quite resilient to these changes. After a clampdown by the Chinese government, Bitcoin fell more than $1,800 but has since gone up and exceeded it’s worth before the dip in price by over 1000%.Not more than ten years have gone by and we’ve seen Bitcoin go from novel technology to something that is traded around the world.
The biggest miners and traders of Bitcoin were once in China, hence why the Yuan was the most used currency to pay for transactions. Nowadays, the dollar and Yen have a large share in the Bitcoin trading market, indicating the cryptocurrencies truly global status. Despite new rules that aim to limit users, there’s no sign of Bitcoin letting up.