South Korea Will Halt Anonymous Cryptocurrency Trading on January 30

Allan Goodman
January 26, 2018

That's a sharp decline of 11.7 percent across the day, a trend that has carried on since the cryptocurrency started off at $11,682 by the opening hour.

At the same time, Australia has assembled an ATO cryptocurrency task force, and Belarus made the startling - and perhaps highly motivated - decision to completely tax exempt nearly all crypto activities for 5 years.

Law enforcement is now using tools developed by software firms such as Chainalysis to track Bitcoin transactions and block criminals converting their gains into cash.

The SEC also said "significant investor protection issues" needed to be looked at before sponsors begin offering cryptocurrency funds to retail investors.

It certainly won't be the only country enacting legislation for monitoring digital currency exchanges.

The moves follow warnings by South Korean authorities that they would ban anonymous trading in crypto currencies and crack down on speculative trading and possible crimes.

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At least some responsibility for bitcoin's recent price tumble may come down to the South Korean government.

The Korbit team also noted that traders with Shinhan Bank accounts will only be able to trade cryptocurrencies starting February. At the end of 2017 it sounded like the government meant to shutter crypto exchanges, but new regulations announced Monday suggest that a blanket shutdown is less likely. So, on the one hand, it's in line with current policy.

Even though cryptocurrency transactions are largely anonymous, governments have sought to target cryptocurrency exchanges, where users convert fiat to crypto, making it easier for authorities to find the initial link.

The blockchain allows the transmission of digital information but blocks any attempts to copy the data; and developing this could make cryptocurrency trading far more transparent.

In September 2017, the Chinese government imposed a ban on initial coin offerings (ICOs), contributing to a slowdown in the market. China once accounted for over 90% of global bitcoin trading. Germany and France are set to make a joint bitcoin regulation pitch at the next G20 meeting in March. Six Korean banks will participate.

South Korea has banned the opening of new virtual accounts for cryptocurrency investors in December, and had asked traders to change their virtual names to their real names.

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