South Korean Cryptocurrency Clampdown, Price Decline Follows

North and South Korea

Major digital currencies went down in price on Monday as some details emerged about cryptocurrency regulations in South Korea that the government has been trying to limit excessive risk. 

South Korea has demanded that the covertness surrounding bitcoin transactions be lifted because the government now only allows accounts that contain the real name of the user to be used in bitcoin transactions.

Kim Yong-beom, the vice chairman of the Financial Services Commission, ordered that the name of the user on the bank account be the same as the name on his or her virtual coin exchange wallet to be able to make cryptocurrency deposits.

Jay Clayton, the chairman of the SEC, warned that public companies that are shifting their business to enter the bitcoin market are being closely examined.

The South Korean government plans to make this effective by January 30 which is just a part of a series of demands by the government to be able to clampdown on bitcoin. This resulted in a minor decline in the price of bitcoin and other cryptocurrencies.

Bitcoin dropped about 11 percent or $10,050 on Coinbase Monday afternoon ET. Bitcoin raked in some of its losses more recently trading at $10353.82 as of Tuesday 12:50 p.m. ET on Coinbase.

Ethereum dropped below the key $1000 level. It was trading at around 10 percent lower near $943 on CoinMarketCorp. In addition to that, Ripple, which is the third largest cryptocurrency, went down 14.5 percent and traded at $1.18 according to CoinMarketCorp.


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