Digital currencies dip as South Korea considers trading…

Jan 12, 2018, 00:26
Digital currencies dip as South Korea considers trading…

His remarks sent bitcoin prices plunging 18 per cent on South Korean exchange Bithumb, while ethereum slumped 23 per cent.

South Korea's Presidential Office said today that a plan to ban trading cryptocurrencies via exchanges in the nation is still not set in stone.

Justice Minister Park Sang Ki said Seoul was preparing a bill to shut down the country's virtual coin exchanges, sending bitcoin and other virtual unit prices into a tailspin.

CoinMarketCap has always been the go-to price index for cryptocurrencies, given its extensive database and an average price calculation based on global exchange data for each coin.

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It's all a bit of a mess, but one thing's for certain: South Korea has a lot of influence in the virtual currency market, and if it decides to ban trading, you can expect the value of your tokens to drop - as evidenced by the sudden downturn which, ultimately, was merely the result of speculative reports.

The announcement removed data from Bithumb, Coinone and Korbit from CoinMarketCap's average calculations.

"We're closely monitoring government moves". "It has started to resemble gambling and speculation", Mr Park added, citing the fact that bitcoin prices are higher in South Korea than globally - the so-called "kimchi premium". "We have nothing further to say at this moment", she told AFP.

Analysts said bitcoin was also undermined by news earlier in the session that South Korean financial authorities were inspecting six local banks that offer virtual currency accounts to institutions.

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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.

Yesterday, the home page of CoinMarketCap suggested a huge decline in it the cryptocurrency market where the overall valuations plunged by almost 10% while the price of Ripple, which has been the most talked-after cryptocurrency in last two weeks, declined by almost 30%.

The total market capitalisation of some 1,300 cryptocurrencies tracked by the website then plunged 20 per cent from around $830bn to $669bn, it has been reported.

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