Amid cryptocurrency frenzy, South Korea bans anonymous accounts

Amid cryptocurrency frenzy, South Korea bans anonymous accounts

Amid cryptocurrency frenzy, South Korea bans anonymous accounts

"Cryptocurrency speculation has been irrationally overheated in Korea". South Korea has just announced a major change to cryptocurrency trading, stating that everyone within the nation who trades will need to use their real name.

The announcement likely contributed to the price of the best known cryptocurrency, bitcoin (BTC) to drop more than 11% or $1,000 this morning.

On Dec. 28, the Korean government reaffirmed its hardline policy against virtual money trading. Part of the trading in South Korea is carried out anonymously and this might be banned if we are to believe new reports in worldwide media. Cryptocurrency exchanges will also be banned from issuing virtual accounts to new clients. The Long Island Iced Tea Corp - an iced tea company that changed its name to Long Blockchain and saw its stock price rise over 200 per cent - saw its price dip by about six per cent after the news from South Korea that had nothing to do with iced tea.

An influx of Korean traders were believed to be responsible for Bitcoin's abrupt surge in early December.

Bitcoin plunged to US$13,500 on the announcement, down from around $15,400 on Thursday, but later recovered to some $14,000. Reuters reported that Bitcoin is so popular in Korea that it attracted non-professional investors like housewives and students to bet their savings in it.

In statements, the government noted that the prices of digital currencies on domestic exchanges was much higher as compared to global markets.

Bitcoin climbed as much as 8.3 percent tin Asian trading, before dropping back to trade 1.9 percent higher at $14,211 at 8:21 NY, composite Bloomberg pricing showed. It said officials from the Justice Ministry could propose legislation that would shut down cryptocurrency exchanges nationwide, but didn't elaborate on when this might happen.

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