The price of Bitcoin has increased above $14,000, dipping yesterday after fears South Korea, one of the largest markets for cryptocurrencies, may ban trading the technology.
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“There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” Justice Minister Park Sang-ki told a news conference.
For South Korean legislators, a complete ban on cryptocurrency will necessitate a majority vote of 297 members of the National Assembly, a procedure that may perhaps take months or even years.
According the Blockchain Industry Association, there are more than a dozen cryptocurrency exchanges headquartered in South Korea.
Cryptocurrency exhanges Coinone and Bithumb, two of the largest exchanges, were raided by police this week for alleged tax evasion.
“We were asked by the tax officials to disclose paperwork,” an employee at Bithumb stated, wishing to remain anonymous.
Previously, South Korean financial officials stated they are examining six banks that offer cryptocurrency accounts to organizations, amidst fears that growing use of the technology may perhaps lead to an increase in misconduct.