Look no further than South Korea!
What was starting to become one of the major hubs of bitcoin trading got some rather harsh news last night.
Well it wasn't actually all that harsh, but apparently those selling bitcoin think so.
In news out last night in South Korea, regulators have announced that they will be regulating cryptocurrency exchanges.
What does that mean?
It likely means several things.
The big requirement going forward will be that exchanges will be required to verify their customers before allowing them to trade, which would go along with rules other financial exchanges abide by in the country.
That doesn't sound all that bad.
What was likely scary was the part where regulators said that they might also shut down some exchanges that are not abiding by these rules.
Which as you can imagine read like, "oh no exchanges are going to be shut down!".
Luckily that is not the case.
However, some quotes from the government also didn't help ease the concerns felt by traders and investors:
“Cryptocurrency speculation has been irrationally overheated in Korea.”
“The government can’t leave the abnormal situation of speculation any longer.”
Overall it didn't sound like that big of changes would be coming, but at a time when bitcoin trading has already been weak, it seems like it is looking for excuses to sell off right now.
In fact, Cedric Jeanson, the CEO of BitSpread, said that not only did he think not that big of changes would be coming, but he actually thought the changes that did come would ultimately be good for the industry.
He felt that regulations were needed and would give investors more confidence to enter the space, which would only increase trading volumes going forward.
My thoughts:
I tend to agree with Mr. Jeanson.
Regulations were always coming if these things were ever to be accepted by the mainstream investors and traders.
This is simply just one step in that process.
For that reason, any dips felt because of news like this are likely buying opportunities.
Stay informed my friends.
Sources:
http://fortune.com/2017/12/28/bitcoin-fall-south-korea-exchange-closure/
Image Sources:
https://www.cryptos.net/article/index/flash-crash-bitcoin/211
Follow me: @jrcornel
It seems it's not only in Korea that regulators are starting to become aggressive. Poloniex, which is based in the US, also said yesterday that next year all traders using their service will have to be verified. I'm certain they got a strongly-worded letter from FinCen or some other gov. agency.
I think you are probably right. Bittrex is implementing similar things as well.
Definitely was curious, thanks for the update!
I agree - regulation and price action shouldn't be afraid of. Cyrpto's will be regulated and this just means more mainstream adoption. Great post!
but if government regulates crypto, and they know who you are and control what you do with them and demand taxes from them....if it loses its decentralized value, what will be the point of cryptos then?
As it is decentralized coins, how the government know about where we purchased from, I mean which geographical location we purchased it?
I don´t think government regulate Crypto, they can regulate Exchanges which is a different thing, indeed they have started to do it .
But 1 BTC will ever be and worth 1 BTC if you control your keys, irrespective what government say and do. In fact what we can and will be able to do with Crypto is what the project behind offers and what people are willing to accept for.
Firstly what's wrong with paying taxes? Also I don't see governments controlling what you do with them, they don't control how you decide to spend your money. Finally adding regulations wouldn't make them decentralized. I suppose it depends on what regulations would be implemented - which no one knows yet. So maybe I shouldn't have been too optimistic with my first post XD
what is wrong with paying taxes? ...Well in today's scammy monetary system where only banksters and corrupted governments benefit from it, and almost all the budget is expended in paying back the interests of unpayable governmental debt and war.... taxation is, indeed, theft
Taxes go on healthcare, schools, the police force, roads, libraries and so on. I don't mind being taxed to pay for these things.
Im afraid you've got to educate yourself a little bit about the matter first... your country as any western country is under huge unpayable debt due to a tremendously corrupt financial and monetary system (specially UK by the way)... i wouldn't mind paying taxes either if I knew that it certainly goes to the subjects you mentioned before...but due to the way the monetary and financial system currently works, it is just an illusion that our taxes go to these things, while the truth is that most of it goes to pay the interest of the unpayable debt we are accumulating at expense of the future generations... I highly recommend you to watch Mike Maloney's "The hidden secrets of money" on youtube...Educate yourself and then we can discuss about the matter in greater depth. Greetings from Spain (another highly indebted country which will most likely collapse in the near future and never pay back its debt)
How is it that a nation that once had so much power and influence is now on the verge of becoming the next Venezuela? How could such a great power fall?
https://www.thetrumpet.com/16660-bank-of-england-economic-collapse-coming-if-uk-keeps-borrowing-money
http://uk.businessinsider.com/bank-of-england-richard-sharp-warns-uk-government-debt-2017-12
It will help price move up long term! Only issue I see is the mempool being jammed and turning people off
As it is decentralized coins, how the government know about where we purchased from, I mean which geographical location we purchased it?
Yo ,
Thanks for sharing
I'm looking for a lower entry point for Bac. Say 12500? That would be awesomeness
Thanks for clarifying what happened. Btc should climb back up and this can just be looked back on as the perfect time to invest
Up voted and resteemed. Thanks for the info
Governments are affraid to have lack of taxes paid.
So they will do anything to secure their income.....
Nevertheless, many more will join, and from that we will all benefit.
Decrease in value is possible. But I think it will not be long because it will surely rise again. Moreover, see the development of bitcoin value every year higher.
It is new year and people are cashing out to pay their taxes. It will back on feet in a week.
Is it already the new year in some places? In the US there is still another 4 days before the new year and tax related selling would take place...
Today’s bitcoin crash is the exact reason why i won’t invest. Imagine when bitcoin experiences it’s first economic recession...
I respect your view. But remember the dot.com bubble? That was a helluva crash when that went! BUT the internet survived. And Amazon, Yahoo and others ultimately thrived. Nothing goes up in a straight line, but cryptos have utility (the good ones, anyway) and are here to stay.
I agree that regulation will bring in investors. Probably the biggest thing limiting the growth of cryptocurrencies is the hesitancy of investors to adopt it as a new standard. It's a bit too "wild west" for those of a more risk averse mindset.
As governments recognize and address certain issues with cryptos, you can expect to see more mainstream adoption of the standard.
There’s always an excuse. Bottom line it’s up over 100x in a few years. Corrections are normal?
Resteemed! Really appreciate this update! That big red candle was quite the surprise!
We've seen this all before, no?
Here's something about "Who is Satoshi?" that you may NOT have seen tho...
https://steemit.com/bitcoin/@harpooninvestor/did-nick-szabo-solve-nick-szabo-s-biggest-bit-gold-problem
No panic No stress. Just buy bitcoin when you fall. My thought is $ 30,000:)
yeah btc is dropped over 10% but they want tu calm up the btc dear
Taxes paid is a must! Further, if government noticed crypto boom to the extend taxable - it is a very good sign. It only means crypto opportunity is getting bigger and safer for end users, for all of us. Thank you for post!
falling to 10,000 dollars before the great growth in the new year
Constructive discussion, I do not know what is going on, the loss is just ours. @jrcornel
I think there is a correction going on within the price of BTC, once that done, it will shoot up to new boundaries. BTC is making a new history in currency market, that never happened in known and unknown currency world.
Good Post....👌👌
Yess and its a good news from new members to purchase it..great post i like it so much...
Oh yeah! Totally heard about this! But I really wasn’t sure what to think of it, thanks for expressing your thoughts on this big news.
Still amazes me news like this can move the market so harshly - all the same, time to buy.
Yep, I think since the market is already weak, news like this has more of an affect than it might have had say 2 weeks ago.
Capitalization in crypto markets os not that big.
A small ammount of trades (around 50 BTC maybe) is enough to create big movements in prices.
Thats why the volatility is so big.
Bigger markets like Forex need billions in trade to make big movements in prices.
Excellent info jrcornel upvoted and resteemed!
Regulations is something crypto will have to deal with in the future, only strongest will survive. As of now I look at it from the technical perspective where we have head & shoulder pattern and is slowly breaking up. If that’s the case it may drop as low as $8,000.00. If Yes, I will definitely start scaling in.
I have heard that number thrown around by quite a few people as well. That $10k touch we had the other day represented about a 50% retracement from the highs...
Yes, but that’s a good thing It always helps the late comers to get in.
great write up - I just posted a similar one myself about the same subject...
What is the basis of any asset's price? Supply and demand. That is all. The utility of the asset is based on the buyer and seller's opinion. In that sense all investments are based on psychology.
Kind of shocking the governments that are being held to account with the development of these international cryptocurrencies aren't championing them? Who would've thought.
That's helpful to know, thanks. It sounds like Korea is going through the same growing pains as other places and we have bumps as the system matures. Hopefully, they will continue to embrace crypto in the new year!
great point mate! ;)
I must have heard this Korean news 10x before, is it actually true this time!?
A small dip of 10% is not a big deal in the world of crypto ;)
Thank you for the info
I have a feeling its going down just for correction before shooting up back..
Notice how the only thing up today is Ripple? High or Low. There will always be a transaction to make and XRP is the way to do it.
Just looked at ripple today. Quite different to other coins.
I have asked this question a little time ago, but I don't completely get it:
Why is this necessary?
I think to make the account holder accountable for his payment of its taxes.
thanks for the information ! very helpfull.
That’s go to know. A pull back like this is a good way buy bitcoin at a lower price.
great stuff @jrcornel ! I honestly dont like the way things are going on with btc lately... bit afraid of it... :/
Well written article. Regulations, when done for the right reasons, are always good in the end. Thanks for sharing.
It's ironic though, SK are still trading near $18k while BTC GP is around $14k. They are still trading with a 25% premium when it usually is around 15-30% anyway.
This suggests that sellers are not coming from SK, but infact elsewhere. I think the correction is continuing as expected, regardless of this news. Especially when SK is only infact 10% of investment, they are still trading at high prices, and they are just implementing KYC like other Bitcoin regulations.
In the long-term, this is actually good news, if it affected price, it's only as a knee jerk reaction...
wow deci tu esti cel mai tare roman de pe aici super tare romanii sunt cei mai buni peste tot
I love to buy on the dips baby! 😂🤑
Short term regulation will be bad but long term it will lead to stability and help ease fears of a bubble.
yes, but why is bitcoin selling at 25 % in Korea more than anywhere else ??
Yup yup ;)
Upvoted. Thanks for keeping us informed.
Wait till the first week of january second week of january is the christmas for sbd 😍