Bitcoin price down after South Korea reveals ban on anonymous cryptocurrency trading from 30 January

South Korea’s financial regulator has announced that from 30 January, the use of anonymous bank accounts in cryptocurrency trading will be banned.

Traders will only be able to make deposits in their cryptocurrency exchange wallets if their name matches that on their bank account, the Financial Services Commission said today.

South Korea is a hotspot for cryptocurrencies like bitcoin, but regulators have been working to prevent digital currencies from being used in crimes like money laundering.

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Bitcoin lost billions off of its market value as it dropped below $10,000 last week on reports of a regulatory clampdown coming in South Korea.

The country’s financial regulator has said the government has considered shutting down cryptocurrency exchanges, but South Korea’s presidential office said an outright ban on trading is only one option being considered to tackle crime.

“The government is still discussing whether an outright ban is needed or not, internally,” a government official who declined to be named told Reuters.

“With South Korea being the world’s third biggest cryptocurrency market, behind the US and Japan, any decision in the country could potentially swing prices globally,” said Mihir Kapadia, chief executive and founder of Sun Global Investments.

Bitcoin was trading more than five per cent lower at $10,219.89 at the time of writing, according to Coindesk’s aggregate price index.

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