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South Korea’s top financial regulators have clarified their position following reports by local media that they have been considering a possible ban on all cryptocurrency transactions, particularly bitcoin.
Regulators Discuss the Extent of Regulation
Reports circulated on Friday that South Korean regulators are considering banning all kinds of cryptocurrency transactions. Hankyung publication, for example, quoted a government official saying: “We are actively considering ways to prohibit transactions on domestic exchanges by judging virtual currency trading as a deceptive means of deceiving people and similar currency transactions.”
On Monday, Financial Services Commission (FSC) Chairman Choi Jong-ku clarified to reporters in a lunch meeting that “the FSC is mapping out measures to restrict [cryptocurrency] transactions to some extent,” which he did admit include “an all-out ban,” Yonhap reported. “The restriction is aimed at minimizing side effects of bitcoin transactions and reducing speculative investment,” the news outlet added. Choi was then quoted by Asia Economy:
We are discussing to what extent the government will regulate the trade, including the prohibition of trade.
Outright Ban Needs Legal Grounds – Ministries Divided
The chairman noted that the Ministry of Justice is currently reviewing measures to regulate cryptocurrencies. News.Bitcoin.com reported last week on this ministry being put in charge of a new Virtual Currency Task Force in order to “set up and implement the regulatory measures through consultation between the related ministries.”
FSC vice chairman Kim Yong-beom, who is part of the task force, was quoted on Monday by Joongang Daily:
There is an opinion that we should hurry to ban virtual currency transactions within the task force, but we will analyze the legal basis and the market impact in a comprehensive way.
Choi confirmed that “there must be legal grounds (to prohibit all transactions).” In addition, the publication pointed out that “it is known that there is a great difference between ministries on whether there is a legal basis for prohibiting all transactions.”
Not First Discussion of Regulating Exchanges
The Virtual Currency Task Force includes not only the financial sector but also the Ministry of Strategy and Finance, the Fair Trade Commission, the National Tax Service, and the National Police Agency, Maekyung detailed. “The Ministry of Justice wants strong trade regulations, but the Ministry of Finance and the Financial Supervisory Commission are said to be hesitant,” the publication noted.
Kim was quoted saying, “The Finance Ministry mainly focuses on preventing institutional finance companies from jumping into virtual currency transactions.”
This is also not the first time South Korean regulators have suggested restricting bitcoin transactions. In November, news.Bitcoin.com reported on the FSC proposing to regulate cryptocurrency exchanges, suggesting that they “will be required to maintain standards for consumer protection.”
Reiterating the regulators’ earlier plans to regulate cryptocurrency exchanges, Yonhap conveyed:
It is expected that the government measures related to virtual currency will not be a one-sided regulation that prohibits virtual currency trading altogether, but a regulation that limits investment amount and investment qualification.
Do you think South Korea will ban all bitcoin transactions? Let us know in the comments section below.
Images courtesy of Shutterstock, Korea Herald, the Investor, and Yonhap.
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The post South Korea Clarifies Position After Reports of Possible Ban on All Crypto Transactions appeared first on Bitcoin News.
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Bitcoin’s value has been climbing since the recent opening of Cboe’s futures markets. The spot price of BTC had dipped a good 3 percent an hour prior to Cboe’s Sunday evening trading sessions, but volume immediately spiked at precisely 6 pm ET when the futures trading opened. At the moment bitcoin is hovering around the $ 15,700-15,950 range on Bitstamp, and Cboe’s bitcoin futures markets have been going wild.
Bitcoin’s Price Kicked Into High Gear At the Start of Cboe’s Opening Trading Sessions
Lately, bitcoin markets have been an astonishing observation as the price has been moving at warp speed towards record highs for over a week. Many people believe that Cboe and CME Group’s bitcoin-based futures products have been injecting markets with optimism. The price slumped this past weekend after coming awfully close to the $ 17K territory reaching a low of $ 13,000. However, on December 10 bitcoin’s value kicked into high gear during the morning trading sessions reaching $ 15,300. Following this, the price had rapid swings ranging from $ 500-900 and markets were down just before Cboe opened its futures markets.
Cboe’s January Contracts Reach a High of $ 18,280
Cboe’s market contract bids started at $ 15,000, and they expire on January 8. At press time the firm’s bitcoin futures have surged over 15 percent reaching a high of $ 18,300. So far a few thousand contracts have been traded on Cboe’s derivatives exchange. Further according to the Wall Street Journal a spokeswoman from Cboe said trading stopped for 2 minutes due to volatile price swings. If the price moves during a massive swing, the exchange can impose a halt on trading. Additionally, Cboe’s website and XBT futures charts suffered from severe traffic, and the site was unavailable for a period of time. Cboe’s website states;
Due to heavy traffic on our website, visitors to www.cboe.com may find that it is performing slower than usual and may at times be temporarily unavailable.
Bitcoin Markets See Massive Volume and High Energy
Bitcoin’s global trade volume is through the roof, averaging over $ 14.6Bn worth of BTC swaps in the last 24-hours. The Japanese yen is still leading the market share by 42 percent, but the U.S. dollar has picked up by 29 percent. The volume, by currency, behind the dollar is the won, tether (USDT) and the euro, according to Crypto Compare statistics. Right now Bithumb is dominating the top five exchanges followed by Bitfinex, GDAX, Bitflyer, and Coinone.
Charts show a fairly bullish trend forming after the previous dips during the afternoon and into the early evening. The two short and long-term Simple Moving Averages (SMA) had crossed earlier in the day which indicated signs of buyer exhaustion. At the moment the long term 200 SMA is above the 100 SMA, indicating another correction could be in the cards at any time. Stochastic and the Relative Strength Index (RSI) have been showing oversold conditions for quite some time. Even so, bitcoin’s price could easily reach the $ 17,000 range or more this week after Cboe’s first day and before CME Group’s introduction. There is heavy resistance above the $ 17K range and even more so above $ 17,600 region. Order books show thin foundations on the buy side, showing prices could slide back quite easily with very little breaks until $ 14,000 again.
Overall the bitcoiners are still optimistic about the spot market value as many believe the mainstream enthusiasm is good for bitcoin. For the moment trading arena participants agree as the price is reflecting a favorable upswing that seems to also reflect Cboe’s contract predictions.
Bear Scenario: As stated above, order books show fragile buy walls in the backdrop, indicating prices could slip backward easily. Prices could dip back in the $ 15,300 to $ 14,800 regions if market optimism became reasonably negative. For now, the only bears making off will be intra-range players and day traders for the time being.
Bull Scenario: Bitcoin could easily break $ 17-20K in the short term due to market optimism, speculation, and bull market emotion. Markets have been bullish for weeks on end, and the quick dips have been eaten up quite quickly. Bulls should expect resistance around $ 16,500, $ 17,000, $ 17,600, for short-term strategies.
Where do you see the price of bitcoin heading from here? Let us know in the comments below.
Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Images via Shutterstock, Cboe, Twitter, and Bitstamp.
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The post Markets Update: Bitcoin’s Value Climbs After Cboe Opens XBT Trading appeared first on Bitcoin News.
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