In recent days, CNBC and other media outlets reported that the South Korean government is about to ban cryptocurrency trading – which apparently led to a downturn in the whole cryptocurrency market.
The truth is that South Korea has been working on a “cryptocurrency closure bill” since December 2017. The bill prohibits underage investors and foreigners from trading crypto within South Korea. The bill has not passed Congress yet and is therefore not yet in effect.
In an official announcement, South Korean government reaffirms there will be NO TRADING BAN for #cryptocurrency market in the short term and NOTHING IS FINALIZED.
— Joseph Young (@iamjosephyoung) January 11, 2018
But it would make no sense to try and regulate cryptocurrency if you are planning to ban it. And a regulatory framework is expected to be introduced by the South Korean government on the 20th January. Contrast this to China’s approach, which just went ahead and banned it, rather than working on a new regulatory environment.
I expect that we will see much more of this approach throughout 2018, as more countries attempt to make crypto trading more transparent, so they can ensure they get their taxes.
With so much FUD being spread by the media and people like Warren Buffett (who admitted to having no knowledge about cryptocurrencies) being featured on the front page of City A.M., it is ordinary folk who bought at the peak, who are now panic selling their bitcoin. I hope more people hodl.
But in any case, I suspect that the likes of NASDAQ are stealthily stocking up on cheap BTC in the lead up to the bitcoin futures introduction, coincidentally expected in Q2 this year.
Call it a conspiracy theory …but watch your backs. Good luck traders!