South Korea ‘may not’ place a total ban on the digital currency
The price of bitcoin is almost hitting the $10,000 valuation after South Korea has clarified that instead of an outright ban on the digital currency, the country might simply place restrictions on a person’s ability to trade with an anonymous account.
News of tightening regulation by South Korea and rolling bans on cryptocurrency trading had plunged Bitcoin to a record low of $6,000 this year. Bitcoin has now, however, recovered slightly and was trading at $9,825.91 valuation this morning.
South Korea government had released this statement on Coindesk yesterday: “At the moment, the government places a priority on transparency of virtual currency transactions within the framework of current law. Undesirable things occurred during the check-up process, such as money laundering through an unconfirmed virtual account or, in some cases, depositing customer money in the accounts of employees in the business…
“We will do our best to improve technology competitiveness by developing technology for the blockchain or applying to the industry. In particular, as part of this, the government plans to make a ‘blockchain industrial development basic plan’ during the first half of the year.”
Even European Central Bank president, Mario Draghi, has resisted calls to block cryptocurrencies such as bitcoin.
Established in 2009 after the financial meltdown, Bitcoin is a digital currency that has no central bank or regulatory authority backing it up. The digital coins are stored in a digital wallet or on the cloud and can be used in transactions.