Bitcoin price: Why is the value of Bitcoin and Ripple falling?
South Korea trade ban fears
BITCOIN prices hit a turbulent patch on the.
Bitcoin and Ripple prices took a dip on Thursday morning, spiralling down as much as 13 percent on some exchanges.
The hit came after South Korean regulators threatened to curb the trade of cryptocurrencies in Korea.
Minister of Justice Park Sang-ki pledged to investigate some of South Korea’s top financial institutions to seek out those who facilitate the speculative growth of bitcoin.
Bitcoin prices responded to the news by plunging across the markets with Korean exchanges facing the heaviest losses.
In South Korea, bitcoin trades with a 30 to 42 percent premium when compared to the rest of the world. Some analysts refer to this as the “kimchi premium”.
Mr Park said this trade is considered “abnormal” outside of Korea and has to be stopped.
He said: “Cryptocurrency trading is looking similar to speculation and gambling.”
South Korea’s cryptocurrency trade is considered abnormal abroad.”
The Minister also underlined that speculative digital currencies are one of the “great concerns”.