South Korea bans its banks from dealing in Bitcoin

SEOUL: South Korea today banned its financial institutions from dealing in virtual currencies such as Bitcoin as the cryptocurrency soars in a bubble fuelled by retail speculators many of them from the country

Updated At : 06:09 AM Dec 14, 2017 IST

A man walks past an electric board showing exchange rates of various cryptocurrencies including Bitcoin (top L) at a cryptocurrencies exchange in Seoul on Wednesday. REUTERS

Seoul, December 13

South Korea today banned its financial institutions from dealing in virtual currencies such as Bitcoin, as the cryptocurrency soars in a bubble fuelled by retail speculators, many of them from the country.

The hyper-wired country has emerged as a hotbed for cryptocurrency trading, accounting for some 20% of global Bitcoin transactions — about 10 times its share of the world economy.

About one million South Koreans, many of them small-time investors, are estimated to own Bitcoins, and demand is so high that prices for the unit are around 20% higher than in the US, its biggest market.

Bitcoin prices have surged globally this year, soaring from less than $1,000 in January to over $17,000. — AFP