The BBC and Reuters reports is relevant, is that South Korea is planning a law to ban the use of crypto-currency exchanges. Meanwhile, the offices of the largest Korean exchanges, Coinone and Bithumb of the police and tax authorities in the framework of an audit on tax evasion were searched.
Already in recent weeks, South Korea was always in the news. The South Korean government had announced the trade of crypto-currencies to tax with a capital income tax. In addition, a prohibition of anonymous exchanges-Accounts and the closure of the Exchanges was threatened, in the case of suspected unlawful acts.
As reported by Reuters now, Sang the Korean Minister of justice, Park-Ki-informed (freely translated), that
“there are big concerns about virtual currencies. Therefore, the Ministry of justice is preparing a draft law to ban the trade in crypto-currencies through exchanges“
Furthermore, it is reported by Reuters that the legislation could even prepare a total ban on the trade of crypto-currencies. Once a law is created design, a majority of the total of 297 members of the national Assembly of South Korea is necessary to adopt the law. According to Reuters, this could take months or even years.
South Korean crypto-currency exchanges to be searched
In the meantime, the offices of the South Korean crypto-currency exchanges Coinone and Bithumb in the context of an investigation for alleged tax evasion were searched. Whether it was rooms, a RAID or a pre-announced search of the office, is still unclear.
Both Bithumb as well as Coinone but is cooperating, according to the report from Reuters with the authorities and the required documents to the examination published.
Apparently could plans there is a connection between the new Law and the searches. The raids are presumably in connection with the plans of the Ministry of Finance to tax the crypto-currency market, or to prohibit and to serve as a basis for further action by the government.
Crypto-currency market is reeling more
This latest news from Korea, as is often of us are stressed, have a big impact on the cryptocurrency market, as South Korea is one of the largest markets.
Today, therefore, in consideration of 24 hours of Trends, almost all of the Top 30 crypto-currencies back in the Minus. The only Bitcoin Cash (+0,77%), EOS (+14%), Siacoin (+3%) and Vechain (+40%) in the green area again.
In the next few days will be watching, in our opinion, interesting to see how the crypto market due to the News from South Korea is behavior. From our point of view, it is because the news is quite conceivable that the market will continue to be dominated by the bears, and the prices will fall further.
Already last year, China had banned the trade of crypto currencies on exchanges. Then there was also a major setback for all courses. After Chinese stock markets had found an alternative solution and in neighboring countries have moved, started a strong rally for the entire crypto-currency market and the market came back stronger than before.
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