Enter the terms you wish to search for. Confusion over reports South Korea was ready to announce a complete ban on cryptocurrency trades that later turned azure bitcoin mining to be incorrect has caused the price of Bitcoin to plummet, sending shockwaves through the market. Reports surfaced earlier today that the South Korean justice ministry was preparing a bill to ban the trading of all digital currencies on exchanges operating in the country.
Bitcoin and Bitcoin Cash: what happens now? The news wasn’t entirely unexpected, given comments made by South Korean prime minister Lee Nak-yeon that suggested the craze might “corrupt the nation’s youth”. 13,100 in a matter of hours. Ether, Litecoin, Ripple and Dash were also down following the news. However, South Korea’s financial watchdog, the FSC, has said government ministries are only discussing the possibility of further restrictions, within the context of trade regulations, and that several ministers are divided on how best to regulate the market.
The restriction is aimed at minimising side effects of bitcoin transactions and reducing speculative investment. This means that while a potential ban on cryptocurrency exchanges is being discussed, there are no immediate plans to ban trades in the country, although the current ban on ICOs will remain in effect. The confusion proved to further highlight Bitcoin’s volatility, and its delicate ties to the South Korean market, which is heavily invested in cryptocurrencies. South Korean currently sees the 5th highest volume of global Bitcoin trades, comparable to the whole of Europe. In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” the investor and chairman of Berkshire Hathaway said on CNBC’s Squawk Box programme. Buffett’s vice chairman, Charlie Munger, supported his boss’s position, adding that it’s not only cryptocurrencies causing problems – venture capital is also a trend that won’t last. He said there’s too much money in VC, comparing it to the dotcom bubble.
Bitcoin and the other cryptocurrencies are also bubbles,” he said. Investors “are excited because things are going up at the moment and it sounds vaguely modern. But I’m not excited,” he added. Buffet also said he would avoid “going short” on any investment in Bitcoin. This process involves selling shares of borrowed stock, which the investor then hopes the value of which will increase over time, then returning them to the investor to make a profit.