South Korea uncovers about $600 million in illegal cryptocurrency trade
- Author: Rogelio Becker Feb 01, 2018,
Feb 01, 2018, 0:21
USA regulators are investigating one of the world's largest cryptocurrency exchanges and a related company, Bloomberg reported. The Bitcoin price surge in 2017 attracted amateur investors like college students and housewives into the space.
Seoul will focus on tightening regulations on cryptocurrency trading. The total market capitalization of all cryptocurrencies is $511 billion. The sharp depreciation witnessed in Bitcoin today should remind investors on how explosively volatile and unpredictable the cryptocurrency can be. More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice previous year.
He expects ethereum to become the dominant cryptocurrency this year. This hack had also affected the price of Bitcoin and other virtual currencies.
A short time ago on coinmarketcap.com, the current combined "market capitalisation" of the 1,498 cryptocurrencies listed on the site amounts to nearly $US560 billion - about the same as Facebook, which has annual revenue of $US37 billion.
However, this is unlikely to rain on the parade of Bitcoin, even though many observers believe that the altcoin is hugely overvalued.
Bitcoin lost a tenth of its value Tuesday, crashing below the $10,000 level amid new regulatory measures in the US and South Korea.
Bitfinex is an online platform that enables traders to buy and sell virtual currencies such as bitcoin and ether. Rival cryptocurrencies now have swamped the market.
Many countries have clamped down on exchanges.
Although it is still far too early to tell what the overall long-term impacts of the new regulations will be, the price of most cryptocurrencies immediately dropped as soon as the South Korean government announced that the regulations had been implemented.
It follows weeks of speculation - partly adding to cryptocurrency volatility - that South Korea has been drawing up plans to clamp down on cryptocurrencies. While it has still to reach a value of $1, and is thus worth a miniscule fraction of the mighty Bitcoin, some people are optimistic about the potential of this altcoin.
Tax evasion and money laundering are not going to be accepted by Governments around the world and the true future of Cryptocurrency is not dependent on criminals and money launderers, some crypto houses like G-BiT have seen the writing on the wall and build a system that is compliant with global Anti Money Laundering and Tax Laws.