The quick read
The trading of cryptocurrencies is booming in South Korea. And government officials are not happy about it. Authorities raided local exchanges Wednesday and are pressing forward with tax evasion charges. The government also announced that legislation to ban the trading of cryptocurrencies is in the works. The raids and planned legislation initially sent local coin prices tumbling 21 percent and global bitcoin prices down about 10 percent. (Reuters)
The key facts
South Korea is a major player in cryptocurrency trading.
(Bitcoin) still trades at around a 30 percent premium compared to other countries. (Reuters)
And it’s not just bitcoin. The South Korean market trades heavily throughout the cryptocurrency space. Any disruption in South Korea is a disruption in the global market.
The bottom line
The South Korean legislation is still being written and needs a majority vote in the National Assembly to pass. That’s still months away. But regulators and politicians are concerned. And that’s not a good thing.