Wondering why Bitcoin dropped by over 10% last night?
Look no further than South Korea!
What was starting to become one of the major hubs of bitcoin trading got some rather harsh news last night.
Well it wasn't actually all that harsh, but apparently those selling bitcoin think so.
In news out last night in South Korea, regulators have announced that they will be regulating cryptocurrency exchanges.
What does that mean?
It likely means several things.
The big requirement going forward will be that exchanges will be required to verify their customers before allowing them to trade, which would go along with rules other financial exchanges abide by in the country.
That doesn't sound all that bad.
What was likely scary was the part where regulators said that they might also shut down some exchanges that are not abiding by these rules.
Which as you can imagine read like, "oh no exchanges are going to be shut down!".
Luckily that is not the case.
However, some quotes from the government also didn't help ease the concerns felt by traders and investors:
“Cryptocurrency speculation has been irrationally overheated in Korea.”
“The government can’t leave the abnormal situation of speculation any longer.”
Overall it didn't sound like that big of changes would be coming, but at a time when bitcoin trading has already been weak, it seems like it is looking for excuses to sell off right now.
In fact, Cedric Jeanson, the CEO of BitSpread, said that not only did he think not that big of changes would be coming, but he actually thought the changes that did come would ultimately be good for the industry.
He felt that regulations were needed and would give investors more confidence to enter the space, which would only increase trading volumes going forward.
My thoughts:
I tend to agree with Mr. Jeanson.
Regulations were always coming if these things were ever to be accepted by the mainstream investors and traders.
This is simply just one step in that process.
For that reason, any dips felt because of news like this are likely buying opportunities.
Stay informed my friends.
Sources:
http://fortune.com/2017/12/28/bitcoin-fall-south-korea-exchange-closure/
Image Sources:
https://www.cryptos.net/article/index/flash-crash-bitcoin/211
Follow me: @jrcornel
It seems it's not only in Korea that regulators are starting to become aggressive. Poloniex, which is based in the US, also said yesterday that next year all traders using their service will have to be verified. I'm certain they got a strongly-worded letter from FinCen or some other gov. agency.
I think you are probably right. Bittrex is implementing similar things as well.
Definitely was curious, thanks for the update!
I agree - regulation and price action shouldn't be afraid of. Cyrpto's will be regulated and this just means more mainstream adoption. Great post!
but if government regulates crypto, and they know who you are and control what you do with them and demand taxes from them....if it loses its decentralized value, what will be the point of cryptos then?
As it is decentralized coins, how the government know about where we purchased from, I mean which geographical location we purchased it?
I don´t think government regulate Crypto, they can regulate Exchanges which is a different thing, indeed they have started to do it .
But 1 BTC will ever be and worth 1 BTC if you control your keys, irrespective what government say and do. In fact what we can and will be able to do with Crypto is what the project behind offers and what people are willing to accept for.
Firstly what's wrong with paying taxes? Also I don't see governments controlling what you do with them, they don't control how you decide to spend your money. Finally adding regulations wouldn't make them decentralized. I suppose it depends on what regulations would be implemented - which no one knows yet. So maybe I shouldn't have been too optimistic with my first post XD
what is wrong with paying taxes? ...Well in today's scammy monetary system where only banksters and corrupted governments benefit from it, and almost all the budget is expended in paying back the interests of unpayable governmental debt and war.... taxation is, indeed, theft
Taxes go on healthcare, schools, the police force, roads, libraries and so on. I don't mind being taxed to pay for these things.
Im afraid you've got to educate yourself a little bit about the matter first... your country as any western country is under huge unpayable debt due to a tremendously corrupt financial and monetary system (specially UK by the way)... i wouldn't mind paying taxes either if I knew that it certainly goes to the subjects you mentioned before...but due to the way the monetary and financial system currently works, it is just an illusion that our taxes go to these things, while the truth is that most of it goes to pay the interest of the unpayable debt we are accumulating at expense of the future generations... I highly recommend you to watch Mike Maloney's "The hidden secrets of money" on youtube...Educate yourself and then we can discuss about the matter in greater depth. Greetings from Spain (another highly indebted country which will most likely collapse in the near future and never pay back its debt)
How is it that a nation that once had so much power and influence is now on the verge of becoming the next Venezuela? How could such a great power fall?
https://www.thetrumpet.com/16660-bank-of-england-economic-collapse-coming-if-uk-keeps-borrowing-money
http://uk.businessinsider.com/bank-of-england-richard-sharp-warns-uk-government-debt-2017-12
It will help price move up long term! Only issue I see is the mempool being jammed and turning people off
As it is decentralized coins, how the government know about where we purchased from, I mean which geographical location we purchased it?
Yo ,
Thanks for sharing
I'm looking for a lower entry point for Bac. Say 12500? That would be awesomeness
Thanks for clarifying what happened. Btc should climb back up and this can just be looked back on as the perfect time to invest
Up voted and resteemed. Thanks for the info
Governments are affraid to have lack of taxes paid.
So they will do anything to secure their income.....
Nevertheless, many more will join, and from that we will all benefit.
Decrease in value is possible. But I think it will not be long because it will surely rise again. Moreover, see the development of bitcoin value every year higher.
It is new year and people are cashing out to pay their taxes. It will back on feet in a week.
Is it already the new year in some places? In the US there is still another 4 days before the new year and tax related selling would take place...