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The Bitcoin price has stabilized at $ 14,500 after plunging under the 13 $ 500 yesterday. Analysts have attributed the recent drop in the price of bitcoin to rumors now refuted that the South Korean government planned to ban bitcoin exchanges.
Bitcoin showing signs of recovery
On December 28, CCN reported that unconfirmed rumors of a potential ban on cryptocurrency by the South Korean government were untrue. But, FUD in the global cryptocurrency market has driven the price of lowering bitcoin with other alternative cryptocurrencies on the market, with the exception of Ripple.
This week, the South Korean government has released three regulatory frameworks it intends to impose in the coming months.
Regulations #Bitcoin of the South Korean Government from this week:
1. The government will impose regulations based on the global trend.
2. Special crypto-currency law written, * non-policy * exchanges can not work.
3. Open to the development of bitcoin / blockchain technology.
– Joseph Young (@iamjosephyoung) December 28, 2017
Local publications in the South Korean market reported positively on the new regulations of the South Korean government, as for the first time, the government consolidated its plans to regulate and feed the local cryptocurrency market. than to reject it.
Analysts of South Korea's cryptocurrency industry noted that the government has reached a consensus to regulate the space because of the increasing speculation about the price of various crypto-currency currencies and the growing number of cryptocurrency systems.
The government and local stock exchanges believe that strict regulation of the local cryptocurrency market would prevent funds from being allocated to unregulated scams and ponzi schemes.
However, while the average world bitcoin price was slightly lower, it was an overreaction of the market given that the South Korean cryptocurrency market did not accounted for less than five percent of international bitcoin transactions. Therefore, even in a hypothetical situation where the South Korean government prohibits bitcoin, it will have minimal impact on the global bitcoin market.
The South Korean government is aware of this fact and, as such, spokesperson for a cryptocurrency working group formed by the South Korean Ministry of Strategy and Finance , the Financial Services Commission, the Financial Supervisory Commission said that South Korea would follow the regulatory roadmap established by other major regions such as the United States and Japan.
"The South Korean government has no choice but to follow regulatory frameworks and trends established by other important governments." there is certainly a negative reputation attached to cryptocurrencies, the government's position is to allow what must be allowed for the benefit of the South Korean market, "said the spokesperson.
Where does bitcoin come from here?
Compared to other periods, bitcoin experienced a difficult month, even though it recorded a 50% gain in December, mainly because of the growing popularity of crypto alternative currencies such as Ripple and Ethereum
Two short-term driving factors of bitcoin are likely to be the efficient scaling up of the Bitcoin network and its adoption by the traditional financial sector as a solid store of value. Given the current trend, it is likely that Bitcoin will close the year at over $ 15,000.
But, in 2018, the Nasdaq, the Cboe and the NYSE, among other financial institutions, should introduce various investment vehicles such as exchange-traded funds (ETFs) and forward contracts, which will raise the price of bitcoin to the middle
Image from Shutterstock to photo
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