Published: Fri, January 12, 2018
Research | By Jennifer Evans

Korean Official: Cryptocurrency Exchange Ban 'Not Finalized'

Korean Official: Cryptocurrency Exchange Ban 'Not Finalized'

However, on Sunday, the website made a decision to remove three Korean exchanges from its price calculations, and since Korean exchanges usually trade higher than other markets, the overall average price for each coin declined, leading many to believe that the crypto market as a whole was in a bearish trend.

"This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity".

However, after the Justice Ministry spoke of an impending ban (and, indeed, after the global market took a huge coinciding dip), local reports from South Korea's Ministry of Strategy and Finance (MOSF, a key member of the crypto task force) said that the MOSF does not agree with the "premature statement of the Ministry of Justice about a potential cryptocurrency trading ban".

At a news conference, Justice Minister Park Sang-ki stated, "There are great concerns regarding virtual currencies and the Justice Ministry is basically preparing a bill to ban cryptocurrency trading through exchanges".

S. Korea is working on a bill that may ban trading of cryptocurrencies.

The website shows real-time prices and market capitalisations for more than 1,300 cryptocurrencies and is widely followed by market participants.

"We're closely monitoring government moves".

A representative of Bithumb, one of around 20 virtual currency exchanges in South Korea, said the company was watching developments closely.

Ripple has warned its customers to look at multiple data sources before making trading decisions after its XRP cryptocurrency fell from second- to third-largest by market cap because of the change.

Last month Seoul banned its financial firms from dealing in virtual currencies.

Bitcoin is the world's most popular digital currency, or cryptocurrency, and its price soared previous year as private investors piled in.

But a cryptocurrency analyst said he was "sceptical" that the justice ministry' proposal would go into force because of strong market resistance.

Two weeks later, it announced a ban on opening anonymous cryptocurrency accounts and a crackdown on money laundering activities using them.

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