Currently, South Korea is a hub for digital currency trading, reportedly accounting for 20% of global Bitcoin transactions. Moreover, one million South Koreans own Bitcoin and demand is so high that prices are around 20% higher than in the US.
The new rules will target anonymous trading of virtual currencies and crack down on money laundering activities, Seoul said. Regulation will including a ban on opening anonymous accounts and new legislation to allow regulators to close virtual currency exchanges, the online publication continues.
The announcement caused Bitcoin to tumble from USD 15,300 to as low as USD 13,700. At press time, the price of bitcoin was USD 14,489. Furthermore, Israel, China and Russia have announced similar plans to reign in trading of digital coins as its popularity has soared.
Bitcoin hit a record high of just under USD 20,000 earlier in December 2017- increasing more than 25 times its price in the beginning of 2017. It suffered a pre-Christmas tumble, dropping 30% in one day last week, but stabilised at around USD 16,000 on December 27.
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