Yesterday's news about South Korean authorities instigating inspection raid at two major exchanges are still shaking up the cryptocurrency market. And now not only by sensational value. The panic selling off started recently and the exchange rates quickly started to reflect the mood of the market.
And now into a little more detail. As everyone interested in the topic knows, the Asian traders have a significant impact on world crypto markets. So significant, in fact, that South Korean authorities crack-down on the residential exchange platforms and the possibility of all-out crypto ban may have caused the market to take a nose dive.
This week the second largest in the world crypto exchange Bithumb was forced do disclose all their paperwork to tax collectors and explain to local police, that their platform has no relation to gambling. The last part may be humorous, but the underlying message should be clear – “the Big Brother is watching you” for the exchanges, and will be doing it a lot closer from now on.
Also there are instances of banks that offer crypto accounts being investigated under “crime prevention” pretense. Local news outlet Yonhap News reports that the South Korean Government is developing a set of laws to abolish anonymous trading accounts.
The following media frenzy has caused a massive selloff this morning during the start of trading. And various news outlets falsely reporting that South Korea has banned cryptotrading as a whole doesn't help matters. All of this resulted in massive price drops in Bitcoin, Etherium and Litecoin.