South Korea to impose measures to reign in runaway speculation in Bitcoin

Among the measures South Korea will take is baning the anonymous opening of cryptocurrency accounts; the measures will also have legislative backing.

On Thursday, the South Korean government said, it will impose additional restrictions in order to reign in wild speculation in Bitcoin, a cryptocurrency, that is being traded within the country.

“The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility,” said the South Korean government in a statement.

Although its statement did not cite specific examples, it noted that trading prices of most virtual currencies were much higher on South Korean exchanges than they were on exchanges in other countries.

The steps it will take to mitigate speculation on bitcoin includes a ban on opening anonymous cryptocurrency accounts as well as a new legislation that will provide regulators a handle to shutdown virtual coin exchanges, if it deems it necessary. This measure was recommended by the justice ministry.

Earlier, South Korea had stated it would tax capital gains on cryptocurrency trading to tackle excessive speculation.

Significantly, Bitcoin has appreciated by more than 19 times in 2017.

As of 0304 GMT, its value stood at $14,384 on the Luxembourg-based Bitstamp exchange.

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