South Korea considers bitcoin ban as currency takes a huge tumble

South Korea considers bitcoin ban as currency takes a huge tumble

With the drop below $10,000, bitcoin had lost about half its value since hitting a high above $19,000 in mid-December.

Analysts at Citi said on Wednesday bitcoin could halve again in value amid the current rout, adding that a possible fall to a range between $5,605 and $5,673 "looks very likely to be very speedy".

With South Korea being the third biggest market for bitcoin, the regulatory plans have caused some investors to sell in anticipation of further share price drops.

Apparently, many investors didn't want to leave the fate of their crypto holdings to chances after South Korea's Finance Minister Kim Dong-Yeon reiterated that a ban on virtual currencies was still a "live option".

In recent weeks, Japan and China have made noises about a regulatory crackdown while South Korean policymakers said they are considering shutting down domestic virtual currency exchanges. Such a ban would require a majority vote from the country's National Assembly, which the Evening Standard reports could take months or possibly years.

All eyes are on South Korea and China for updates on proposed regulations. Ripple is now officially the name of a startup that was based on San Francisco that used the technology pertaining to blockchain in order make a network for payment for digital asset exchanges, banks, and other different financial institutions.

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The authors said: "Most people are buying bitcoin, not because of a belief in its future as a global currency, but because they expect it to rise in value".

This week, the price of Bitcoin dived to a low of $9,199.59, a drop in value of nearly 50 percent of its record high reached in December past year.

Both announcements, which came amid ongoing attempts by the USA and Germany to clamp down on money laundering and related crimes, exacerbated volatility in the cryptocurrency markets, sending bitcoin prices tumbling, Reuters reported. Both coins are trading at prices that are significantly lower than Monday's rates, but they're still profitable for those buyers who bought in early on.

Bitcoin is notoriously volatile, and it has suffered huge declines before.

Ethereum, the second-largest cryptocurrency by market value, was down 18 percent since Tuesday, according to website CoinMarketCap. "This is far from guaranteed given the existence of alternatives with better characteristics".