On Monday, bitcoin (BTC) gained to trade as high as $8,907. This increase in the coin’s price forced South Korean authorities to conduct a pan-governmental meeting to talk about the state of the crypto market.
According to a report, the agencies held the meeting on Tuesday. Attendees included officials from the ministry of economy and finance and the justice ministry. The Financial Services Commission (FSC) also had some of its members participate in the meeting. Noh Hyeong-ouk, South Korea’s minister of the office for government policy coordination was in charge of the conference.
Since virtual currencies are not legal currencies and nobody guarantees their value, the price fluctuates drastically due to illegal acts, speculative demand, and changes in the domestic and foreign regulatory environment.
It is necessary to make a careful decision on a series of actions.
Measures to Protect Investors
The officials promised to monitor local crypto exchanges. They pledged to introduce measures that will protect investors when the crypto market posts gains. On top of this, the panel vowed to fight crypto market frauds by involving law enforcement and regulatory agencies.
The meeting also found that there was a need to pass an amendment to the country’s Financial Information Act. In so doing, the law would prohibit money laundering on crypto exchanges.
Crypto Activity in South Korea on the Rise
South Koreans have been joining the crypto movement. Data from Coindance reveals that the weekly bitcoin (BTC) trading activity on Localbitcoins hit an all-time high of 219 million won. The country is one of the major crypto markets in the world. While it comes after several countries regarding total volume, South Korea leads when it comes to per capita adoption.
Reportedly, this is not the first time that South Korea is taking action on the crypto market after the prices of crypto coins gained. The country’s FSC reaffirmed that it had banned ICOs. According to the FSC, ICOs are high-risk investments. The government had also tried to ban crypto as a whole but failed after facing resistance from society.
Although BTC posted gains while opening the week on Monday, the coin began plunging on Tuesday and most of the altcoins followed suit. At the time of writing, the leading crypto coin is trading at $8,661 after losing 0.60 percent in the day. On the other hand, bitcoin cash SV (BSV) is the highest gainer in the top-10 list of the biggest crypto coins. According to data from Coinmarketcap, BSV is trading at $148. 08 after gaining 22.89 percent in the past 24 hours.
Do you think South Korean citizens are behind the recent BTC rally? Let us know in the comments below.