FOREX TradingCharts.com

Forex News: S. Korea Crackdown, Website Exclusion Erase $100 Bln

S. Korea Crackdown, Website Exclusion Erase $100 Bln Cryptoasset Market Cap

01/09/2018 - 06:42:00 (RTTNews)

(RTTNews) - The "hyper" exuberance of the digital currency market was served a damper on Monday as South Korean authorities announced a crackdown on the retail banks, which were funding cryptocurrency exchanges.

Following the news, a leading cryptocurrency market data provider, CoinMarketCap, removed some Korean exchanges from its price calculations, without any warning, causing a sharp slide in prices of digital coins it tracks.

"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," CoinMarketCap said in its official twitter account.

The combined impact was a near $100 billion fall in the overall market capitalization of digital currencies.

During January 8, the total market capitalization fell to as much as $668 billion from $774 billion, according to CoinMarketCap data.

South Korea's Financial Intelligence Unit and Financial Services Commission launched a probe into six commercial banks, which were offering trading accounts to crytpocurrency exchanges in the country.

Joint inspections will be carried out in Woori Bank, Kookmin Bank, Shinhan Bank, NongHyup Bank, Industrial Bank of Korea and Korea Development Bank from Monday through Thursday.

Officials will check whether these banks comply with their anti-money laundering obligations in their transactions with cryptocurrency exchanges, the Financial Services Commission said in a statement on Monday.

They will also inspect whether these banks have implemented appropriate measures to verify their customers' identification in regard with cryptocurrency trading.

"Cryptocurrencies are highly likely to be used as a means to money laundering due to their nature of anonymity and non-face-to-face transaction," the FSC said.

"The government continues to review all possible options including shutdown of crytptocurrency exchanges in order to minimize side effects of cryptocurrency trading - fraud using cryptocurrencies, cyber hacks on cryptocurrency exchanges, and irrationally overheated speculation," the agency added.

The country has witnessed intense interest in cryptocurrencies such as Bitcoin and is one of the most active markets for virtual currencies with several cryptoexchanges located there. Prices of cryptocurrencies in the South Korean market tend to much higher than elsewhere as buyers exceed those willing to sell.

The South Korean watchdog pointed out that the so-called "virtual accounts" offered to cryptocurrency exchanges have been making it more difficult to identify real names of account holders, and leaving cryptocurrency trading more vulnerable to crimes and money laundering.

The number of accounts linked to cryptocurrency exchanges totaled 111 with a combined deposit value estimated around 2 trillion won or $1.8 billion, Yonhap, a South Korean news agency, reported. More than 2 million Koreans own digital currencies.

Late December, the South Korean government said that it was planning to implement special measures to curb speculation in the virtual currency market.

New measures will require real-name cryptocurrency transactions, starting January 20. The country also plans to ban the issuance new virtual accounts to cryptocurrency exchanges.

FSC Chairman Choi Jong-ku has sought deeper co-operation with regulators in China and Japan, two other main markets for digital currencies, in curbing intense speculation in cryptocurrencies.

At a press conference Monday afternoon, Choi expressed concern over the lack of information regarding what is exactly happening in the virtual currency market.

With the assistance from the justice ministry and tax agency, the FSC plans to establish a legal base for the digital currency market, allowing the agency to inspect cryptocurrency exchange operators directly, Choi said, The Korea Times reported.

The watchdog also plans to strengthen the punishment for crimes linked to virtual currencies.

As of 5.00 am ET On January 9, Bitcoin was down 4.12 percent at $14,910, while Ethereum was up 5.36 percent at its near record high $1,221 on coinbase. Ripple, one of the most popular virtual currencies in South Korea, was down around 6.26 percent at $2.41 on CoinMarketCap.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2018 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Dollar Little Changed As Investors Focus On Washington (37 min(s), 19 sec(s) ago)
(RTTNews) - The dollar is turning in a mixed performance against its major rivals Friday afternoon ...Full Story»

Loonie Little Changed After Canada Manufacturing Sales (10 min(s), 19 sec(s) ago)
(RTTNews) - Statistics Canada has released Canada manufacturing sales for November at 8:30 am ET F ...Full Story»

Loonie Drops Ahead Of Canada Manufacturing Sales (58 min(s), 19 sec(s) ago)
(RTTNews) - Statistics Canada will release Canada manufacturing sales for November at 8:30 am ET F ...Full Story»

Canadian Dollar Falls As Oil Prices Weaken (43 min(s), 19 sec(s) ago)
(RTTNews) - The Canadian dollar declined against its key counterparts in the European session on F ...Full Story»

Pound Drops As U.K. Retail Sales Fall More Than Forecast (01 min(s), 19 sec(s) ago)
(RTTNews) - The pound weakened against its major opponents in early European deals on Friday, afte ...Full Story»

Pound Declines After U.K. Retail Sales (07 min(s), 19 sec(s) ago)
(RTTNews) - Following the release of UK retail sales for December at 4:30 am ET Friday, the pound ...Full Story»

Pound Mixed Ahead Of U.K. Retail Sales (01 min(s), 19 sec(s) ago)
(RTTNews) - The Office for National Statistics publishes UK retail sales figures at 4:30 am ET Fri ...Full Story»

Franc Little Changed After Swiss Producer & Import Prices (07 min(s), 41 sec(s) ago)
(RTTNews) - At 3.15 am ET Friday, Swiss producer and import price figures for December have been r ...Full Story»

Search

FOREX NEWS

Dollar Little Changed As Investors Focus On Washington

01/19/2018 - 15:04 PM (RTTNews)
(RTTNews) - The dollar is turning in a mixed performance against its major rivals Friday afternoon ...Full Story>>

Loonie Little Changed After Canada Manufacturing Sales

01/19/2018 - 08:36 AM (RTTNews)
(RTTNews) - Statistics Canada has released Canada manufacturing sales for November at 8:30 am ET F ...Full Story>>

Loonie Drops Ahead Of Canada Manufacturing Sales

01/19/2018 - 08:26 AM (RTTNews)
(RTTNews) - Statistics Canada will release Canada manufacturing sales for November at 8:30 am ET F ...Full Story>>

Canadian Dollar Falls As Oil Prices Weaken

01/19/2018 - 07:11 AM (RTTNews)
(RTTNews) - The Canadian dollar declined against its key counterparts in the European session on F ...Full Story>>

Pound Drops As U.K. Retail Sales Fall More Than Forecast

01/19/2018 - 05:28 AM (RTTNews)
(RTTNews) - The pound weakened against its major opponents in early European deals on Friday, afte ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.