The year started with Bitcoin’s value at $1,000 per unit and later, it reached the highest mark at $19,000. This has caused huge buzz and demand in the unregulated virtual currency market.
Taking action toward paving the path to somehow regulate the market the South Korean government today said people in the country need to trade such cryptocurrency in their real names. This will help in curbing speculations to the highly volatile investment.
Until recently the virtual currencies barely existed in South Korea but in past few months interests of investors towards it have grown up. Trading has become popular exchanges have set up physical storefronts too.
With real names in use, it is being said the virtual currencies will be in line with other financial products and the South Korean government would be able to track transactions easily too related to tax capital gains from the investments.
Releasing a press statement the government said, “Cryptocurrency speculation has been irrationally overheated in Korea… The government can’t let this abnormal situation of speculation go on any longer.”
In September the financial regulator of the country banned initial coin offerings, which were implemented to raise money by creating and selling virtual currencies.
Officials said such practice can lead to serious distortion if it is left unaddressed and the government wants to send a warning to investors about the volatility of cryptocurrencies.
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