Bitcoin prices continued to plunge in Korea on December 29 following more than 10 percent dip yesterday after the government announced it would adopt real-name transactions for cryptocurrency trading from January. According to the Wall Street Journal, the government's new measures will ban anonymous accounts being used on exchanges and will require banks to keep records of the identities of customers when it handles settlement services for cryptocurrency trades.
In addition, the new regulation will "leave all policy options open, including closure of a cryptocurrency exchange when deemed necessary".
The measures to be undertaken by the government include a ban on opening anonymous digital currency accounts and legislation that will enable regulators to close cryptocurrency exchanges if required.
Following this news, the Bitcoin price has plunged by more than 11% in the past 24 hours and is now trading at $14375.70, according to CoinMarketCap. Such widespread interest and related speculation have led to price premiums on Korean exchanges that are anywhere from 15% to 20% higher than the global average.More news: Look out for a Wolf Moon over Manchester this New Year
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Both investors and exchanges seem skeptical about a complete trading ban here considering daily transactions have already reached a whopping 7 trillion won. This follows a huge uptick in trading within the nation, that itself coming at a time when bitcoin's value has skyrocketed to, at one point, more than $19,000 Dollars.
Officials share the view that virtual currency trading is overheating irrationally... and we can no longer overlook this abnormal speculative situation.
Asian markets play a fateful role in cryptocurrency trading. But they see a price adjustment unavoidable for some time.
He added Bitcoin's recent drop was largely expected, saying investors may see more and more volatility next year, given the lack of liquidity in the market.