Industry Reports

Bitcoin Price Slips as South Korea Plans to Ban Cryptocurrency Exchange

Cryptocurrency has been attracting the attention of many people around the globe. Some consider cryptocurrency to be the payment method of the future, while others say that cryptocurrency is a balloon that is expected to burst in the foreseeable future. Bitcoin is the largest cryptocurrency thus far. The value of cryptocurrency, which was introduced in 2009, has grown at a rapid pace. Quite unsurprisingly, the bitcoin frenzy has invoked mixed feelings among the countries’ regulators, who are still examining the issue.

The price of bitcoin has demonstrated extreme volatility. Last year, bitcoin value reached its all-time high. Since then, prices have fluctuated significantly. According to the latest news, bitcoin prices infamously dropped following South Korea’s announcement that the country plans to ban trading of bitcoin and other virtual currencies on domestic exchanges. The figures showed that bitcoin prices on the local market dropped by 21%.

On Thursday this week, South Korea’s government officially announced that the country plans to apply a ban to trading of cryptocurrencies on exchanges. The news had a negative effect on the bitcoin value, which is currently in free fall. At a news conference, Justice minister Park Sang-ki commented that the country’s lawmakers are working on the bill.

It was explained that a majority vote of the total 297 members of the National Assembly is to be needed for the bill to pass. However, that might take months or even years. Mun Chong-hyun, chief analyst at EST Security announced that the traders can circumvent the law and go abroad to cash out their gains from virtual coin investments. According to Korea Blockchain Industry Association, there are a number of cryptocurrency exchanges in South Korea.

The Justice Ministry’s announcement triggered a massive wave of discontent, which blocked the official website of the Blue House (the executive office and official residence of the South Korean head of state). More than 55,000 South Koreans joined a petition seeking to postpone the imminent ban.

Cryptocyrrency Within the Gambling Industry

The casino industry is booming across Asia. South Korea has a good perspective of becoming a major Asian gambling venue. Being one of the most technologically advanced countries, South Korea might offer a one-time experience to every casino player.

It is important to note that the casinos in South Korea are open only to foreign visitors. The only casino that accepts locals is Kangwon Land Resort. Some online casinos have made a big bet on bitcoin. However, the provision of online gambling services across South Korea is illegal. In that sense, the ban on cryptocurrency trading is not expected to affect the country’s gambling sector.

The gambling industry is a highly-competitive business that is dependent on the latest innovations. The world is currently facing a major expansion of bitcoin gambling. As a result, some countries have already announced that they are to introduce a blockchain strategy in order to position themselves at the forefront of the online gambling industry. However, many other countries adopted a more conservative approach towards cryptocurrency, which hit value of bitcoin. Nevertheless, bitcoin is the most expensive virtual currencies globally.