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Bitcoin falls $1,000 after South Korea promises crackdown on trading

Bitcoin plunged by more than $1,000 on Thursday after South Korea said it was planning a crackdown on trading in the digital currency in the latest of a string of warnings for investors.

Richard Partington | The Guardian

In a further illustration of bitcoin’s volatility, it dropped to around $13,500 after trading at about $15,400 on Wednesday. The cryptocurrency has surged in value this year by more than 900%, becoming one of the biggest stories in finance amid a slew of warnings of a pending market crash, hitting a record high of almost $20,000 earlier this month.

South Korea, which is one of the biggest markets in the world for bitcoin, said it was preparing a ban on opening anonymous cryptocurrency accounts and new legislation to enable regulators to close coin exchanges if they felt there was a need to do so.

According to Reuters, the government issued a statement saying it had “warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility”.

The move comes less than two weeks after the high-profile bankruptcy of one of the country’s digital currency exchanges, after the Seoul-based platform was hit by hackers for a second time.

READ the full story from The Guardian

About Richard Partington

Richard Partington
Richard is an Economics Correspondent at the Guardian, based in London. He previously worked for Bloomberg covering banking. Before that, Financial News, a publication of The Wall Street Journal, and City A.M.. He is also published in The Wall Street Journal, Dow Jones Newswires, The Times, Guardian, Independent, Daily Mirror and regional press.

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