Bitcoin has grown several unexpected folds in 2017 and concerned to safeguard investors and others to some extent the South Korean government today said virtual currencies should be traded in real names in the country. It will be easier for the authorities to curb speculations.
The top-rated virtual currency Bitcoin had the year-start with price tag of $1,000 per unit and lately it had grown up to $19,000 a unit, attracting more investors in the highly volatile market.
The Bitcoin and other cryptocurrency markets barely existed in South Korea until recently, but dramatic spurt of interest has been lately seen among ordinary people too including students and retirees. Trading of Bitcoin has become highly popular at some exchanges and physical storefronts have been setup too where buyers can learn more about it and buy it.
The South Korean government said using real names will help to bring the currency more in line with other financial products and to make it easier in tracking transactions as well as tax capital gains of investors.
Immediately after the announcement the Bitcoin price tumbled.
Authorities said, “Cryptocurrency speculation has been irrationally overheated in Korea… government can’t let this abnormal situation of speculation go on any longer.”
Several other steps too had been taken in past few months to warn investors of the volatility of virtual currency market. In September its financial regulator banned initial coin offerings.
South Korean Prime Minister Lee Nak-yeon said, “This can lead to serious distortion or social pathological phenomena, if left unaddressed.”