Assets, Bitcoin

Is Bitcoin Allowed in Korea?

The Korean government is reportedly considering a ban on cryptocurrency trading, sending the prices of Bitcoin and other digital currencies sharply lower.

Bitcoin tumbled more than 12 percent on Thursday, its steepest daily percentage drop in more than three weeks, after news of the potential ban in South Korea broke. Other digital currencies also sold off sharply.

Ethereum fell more than 20 percent, while Ripple, the third-largest cryptocurrency by market value, plunged 33 percent. Bitcoin cash, the fourth largest, declined 14 percent.

The sell-off was widespread and across exchanges. In South Korea, one of the most active markets for digital currencies, bitcoin was trading at around $17,000 on Thursday afternoon, more than 20 percent below the record high it reached just a day earlier.

NOTE: WARNING: The legality of Bitcoin in Korea is highly uncertain and may change at any time. As such, trading or using Bitcoin in Korea may be considered illegal by local authorities. Please exercise extreme caution when dealing with Bitcoin in Korea, and make sure to stay informed about the latest developments in the Korean legal system regarding Bitcoin.

The potential ban in South Korea is just the latest regulatory challenge to face Bitcoin and other digital currencies. China has already moved to shut down exchanges and prohibit initial coin offerings, a popular way of raising money for new digital currency projects.

And last week, JPMorgan Chase & Co. chief executive Jamie Dimon called Bitcoin a “fraud” and said he would fire any employee trading it for being “stupid.

” He later said he regretted making the comment.

Despite the regulatory challenges, digital currency exchanges have proliferated in recent months as investors have poured money into Bitcoin and other virtual tokens in hopes of making big profits.

South Korea’s proposed ban is aimed at curbing speculative investing in digital currencies, which has led to a boom in trading by ordinary investors there. The government is also concerned about the potential use of digital currencies for money laundering and other illegal activities.

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