What a way to go down
South Korea bans ICOs but also banned margin trading. Consider that seemingly most activity in Bitcoin is coming from Korea this could have a huge impact on the price. Should we expect the price to collapse without the margin traders of South Korea or the Chinese? Little by little, money is being removed from or drained out of the crypto-space by regulators. This can happen via complex regulations which require hiring a bunch of lawyers or it can be restrictions on ICOs or it can be banning of margin trading.
It is true that margin trading is high risk but day trading generally is supposed to be high risk activity. Is there a good reason for a ban on margin trading in it's entirety? On the other hand North Korean hackers are accused of being involved with cryptocurrency so that could be enough to trigger the crackdown both in China and in South Korea.
I still don't understand if the margin banning is only on ICOs or on all cryptos? I really dislike these vague statements from regulators where there's a ton of ambiguity. The news agencies re-interpret these vague statements and just run with it, which in turn triggers market panics.
Can't they just put out a well-worded released that is on point? Is that too much to ask of these so-called regulators?
Wow thank you for noticing us about it. I didn't see the margin trading news.
Would you have access to a broad % of short positions on Bitcoin (on individual exchanges for example)?
Because it would also prevent people from Shorting Cryptocurrencies!
If china the 2nd largest economy of the world couldn`t do it how will south korea have a bad impact on Bitcoin price, Bitcoin is here to stay forever , dont panic future is in our own hands now..............
nice subject and ICO
Oh no! Not again!!
upvoted for original interesting content -- my view is that most investors are prey to margin trading companies, and it would be interesting to hear from anyone who has actually made money from margin trading (and could prove it). Bitcoin will continue to grow as it is so useful, and the masses of the world are now beginning to enter the market. Steem is also looking at a bright future.
offering margin is not an "activity of prey" (at least in the US, it's hard to find info about SK)
you need reputable trust built with your brokerage, typically deposit history of significance (at least 5 figures) and knowledge with margin accounts to even get a brokerage to allow you margin account privileges. Now, of course you can lie about most of this (not recommended and a securities violation btw) but it's not as easy to open a margin account as it was years ago.
Also, trading on margin isn't some outrageous high interest rate scheme like a loan shark, but typically it's substantial enough to be used effectively only over short durations (unless you're a hedge fund). Regardless, if you shit the bed you'll get a margin call triggered real fast and have to pay up the loss before shit really hits the fan.
mindless babble
Thank you for this highly ironic reply
Sorry, i couldn't see your original point and should have let it go without comment. I worked in trading foreign exchange for a trading bank for a couple of years, and have seen the results of bucket shops set up to steal money from "investors". I am sure you meant to educate me, and that's a valid intention. All the best, wishing you an excellent day.
no worries. that sounds like an interesting background with some stories that would be interesting to read about. consider posting them in a series or something.
my comment was more thinking of the average joe that hops on a big ebroker in the US.
all good
"Country X bans crypto"
Cats out of the bag guys, you are not putting it back in.
What you can expect from news like this is that monero goes up in price
On the long run not that bad news. The world will survive without margin trading, and it will even remove some volatility - and possibility of banksters to manipulate market price :-).
Only S. Korean based ICOs are banned. One could argue that leveraged trading in cryptos is banned to 'protect the little guy'. I know I would for sure loose my lunch money if I were to try that. We're back over $4200 the day after another 'banning' so I'm thinking tempest in a teapot.