The news about the prohibition of cryptocurrencies in Korea brought down the Bitcoin course

Bitcoin and other digital currencies have fallen by 15%since the beginning of the week. Any new message about the intentions of world regulators can lead to a new fall

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Last night, the South Korean Ministry of Justice announced a plan of actual ban on trading cryptocurrency on local exchanges. A few hours later, the president agreed that this is only one of the proposals - but the ministry’s statement managed to send the cryptocurrency market as a deep fall.

• In a few hours, the capitalization of the global cryptocurrency market lost $ 106 billion. Bitcoin was minimized to a minimum for 2018 and traded below $ 13,000, but by tonight he played a fall and by 19.00 Moscow time cost a little more than $ 14,000.
• Cryptocurrencies are getting cheaper for the last week - from January 7, the entire market has fallen by 15%, bitcoin - by almost 20%. The main reason for the fall is the fears of twisting the nuts by regulators in China and South Korea. The Chinese authorities, in particular, are going to limit the use of electricity for mining. China accounts for about 75% of world mining capacities.
• South Korea is one of the main world centers of cryptocurrency trading. The country accounts for approximately 20% of all world bitcoin transactions, while the prices of South Korean exchanges are usually 30% higher than the mid-ID.
• The main claim of the Korean authorities to crypto -streaks is accusations of tax evasion. Last week, several exchanges, including the second largest BitHumb, came with searches by the police.
• Regulation remains the main factor in uncertainty for cryptocurrency. Any messages about the new initiatives of the authorities cause sharp fluctuations in the market. In October 2017, China established a ban on ICO, and crypto -rhizms banned the exchange for real money, dropping a bitcoin exchange rate of $ 2000.

What am I to me?

The reaction of markets to news from South Korea for a thousandths confirms: investments in cryptocurrency are risky, and most importantly, what to follow - news from regulators. This year there will be many similar news, including from Russia - the Ministry of Finance promises to adopt a law on cryptocurrencies and ICO in the first half of the year.

Marina Bocharova, The Bell