Bitcoin's Price Plunge In 5 Points
South Korea is a crucial source of global demand for cryptocurrencies like Bitcoin. "There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," South Korea's Justice minister Park Sang-ki said.
After the market's sharp reaction to the announcement, South Korea's Presidential office hours later said a ban on the country's virtual coin exchanges had not yet been finalised while it was one of the measures being considered.
South Korea's largest cryptocurrency exchanges such as Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion.
Despite warnings from regulators of many countries, Bitcoin prices saw a big surge last year. From $1,000 in the beginning of 2017, it surged closer to $20,000 in mid-December 2017, before giving up some gains towards the year-end.
The Indian finance ministry recently cautioned investors about the risks of trading in cryptocurrencies such as bitcoin, saying digital currency investments are like "Ponzi schemes." Cryptocurrencies are not legal tender and have no regulatory permission or protection in the country, the finance ministry said in a statement. "There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes", with investors risking a sudden and prolonged crash, the statement said. (With Reuters Inputs)