Several cryptocurrencies dropped on December 28 after South Korea announced its plans for new cryptocurrency regulations. However, one cryptocurrency surprised people by rising in price.
South Korea wants to ban anonymous crypto accounts in their country. They also plan on hastily shutting down coin exchanges that break the rules. These two changes indicate South Korea’s concern about cryptocurrencies being used in the black market. Another major change the South Korean government may make is taxing capital gains from cryptocurrency trading. Different from the first two reasons, this one is about profiting and monitoring the trading of cryptocurrency.
The South Korean government has given warnings in the past that virtual currency can’t act as real currency. They think that citizens will suffer huge losses due to the digital coin’s volatility. The spokesman of South Korea’s Office for Government Policy Coordination reminded everyone of this at the press conference.
Within minutes of Reuters reporting on the story, bitcoin, litecoin, ethereum, and other cryptocurrencies fell by 5% or more. Tech Crunch reported that bitcoin took a 12% nose dive. Despite the South Korean government frowning upon cryptocurrency, the country has some of the largest coin exchanges. Thus, changes that they implement can affect the crypto markets.
One cryptocurrency jumped up in price after the news. Throughout 2017, it has been steadily rising, and South Korea’s upcoming changes didn’t negatively impact its price. Ripple coin (XRP) increased by 9.4+%. With the entire year accounted for, ripple coin skyrocketed from 0.6 cents per coin to $1.46 per coin. This is a 243-fold increase.
One reason Ripple coin increased on Thursday when other major cryptocurrencies declined is positive news was released about their partnership in Japan. The partnership is with credit card companies to make the crypto coin more accessible to consumers.
Is there a need for panic? As is usually the case, there’s no need to panic over this recent cryptocurrency news. If you haven’t invested in Ripple coin yet, then it’s worth considering adding it to your portfolio. As for bitcoin, it maintains a significant lead as the top cryptocurrency in the world. It will likely recover from the recent decline as crytpocurrency gradually becomes more acceptable in other countries around the world.