As the financial regulator of South Korea, Choe Heung-sik said the government will support the normal transactions of cryptocurrencies, the bitcoin prices rise above the $11,500 level. Choe’s statement is in contradiction with government’s consideration to be tough on crypto exchanges, three weeks earlier.
South Korea Cryptocurrency: supports to normal transactions
On Tuesday, South Korea’s Financial Regulator Choe Heung-sik said that the government will support the normal transactions of cryptocurrencies. Heung-sik’s statement came just three weeks after the government’s consideration to be tough on virtual currency exchanges.
On January 30, South Korea launched a real-name trading system for the trading of cryptocurrencies. The move has been made to prevent the digital coins from being used in tax evasion and money laundering among other crimes.
Recently, in a meeting with cryptocurrency exchanges’ representatives, Choe said that the government will support cryptocurrency trading and encourage the banks to transact with cryptocurrency exchanges if normal transactions are made.
Bitcoin and Ethereum among other cryptocurrencies have gained immense popularity among the investors of South Korea. Reportedly, about $648 million revenue has been generated by South Korean cryptocurrency exchanges in 2017.
Bitcoin rises above the resistance level of $11,000
With South Korea’s green signal to the normal cryptocurrency trading, the bitcoin prices rose above $11k. At the time, bitcoin is riding at $11,519. This takes bitcoin about double of its lowest on February 6 at $5,900.
Amid the concerns of a crackdown on booming cryptocurrency industry, its prices took a deep plunge through the most of January. However, CFTC chief Giancarlo’s testimony at Senate Committee gave a relief to the bitcoin investors.
The market has been testing strong resistance levels while experiencing shakeouts as the market decides its next move. Amidst this, the green light from South Korea is working very well in favour of cryptocurrency prices as it takes the bitcoin prices well above $11,500.
According to the CEO of BitMEX, Arthur Hayes:
“South Korea did not ban Bitcoin. We’ve now gone up almost double in the last few weeks, and I think a lot of this is people coming around to the fact that Bitcoin trading isn’t going anywhere.”
What are your views on South Korea being in favor of normal cryptocurrency trading and bitcoin prices being on a bullish trend? Let us know your thoughts below!
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.