Bitcoin drops $2,000 in value as South Korea announces planned trading ban
The value of bitcoin plunged 13.5% in the early hours of Thursday after news hit that South Korea is planning to ban cryptocurrency trading.
News of the ban follows the raiding of local cryptocurrency exchanges by police and tax authorities over alleged tax evasion, as one of the key nations driving the demand for bitcoin and other virtual currencies attempts a clampdown.
There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges, justice minister Park Sang-ki said.
This is usually normal in crypto currencies as news and event always have impact on their prices, south Korean ban on bitcoin will only affect it temporarily as we noticed during the clamped down on exchanges by the Chinese government last year, there was a drop in the price
then before the price rallies upward later.