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Bitcoin Partly Recovers Even As Worries Persist Between Investors

January 24, 2018 at 13:48 by Yahia Barakah

Bitcoin price climbed on Wednesday to erase losses that the cryptocurrency had earlier this week in the wake of new regulations in South Korea that limited traders’ access to trading accounts. The digital currency has been struggling to maintain an upward momentum against a stream of overvaluation warnings from policymakers and analysts.

Bitcoin moved below the $10,000 mark earlier this week for the second time in a row in the last 14 days. The losses came as South Korea began a crackdown on cryptocurrency trading by restricting traders’ ability to deposit funds into their trading accounts from anonymous bank accounts.

Starting January 30, traders will be required to reveal their real identities to be able to exchange Bitcoin and other virtual currencies on South Korean exchanges. The move appears to be aimed at limiting funding criminal activity and illegal operations. However, South Korean officials have lately expressed concerns about speculative trading behaviors, which may have been limited by a recent rule that prevents exchanges from creating new accounts.

South Korea regulators also introduced a new tax plan on the income of cryptocurrency exchanges, which includes a 24.2% taxation. More regulations may follow in light of these developments, especially as high profile South Korean officials including Finance Minister Kim Dong-yeon. The finance minister said last week that shutting down cryptocurrency exchanges is one of the options on the table.

The crackdown on Bitcoin does not appear to be limited only to South Korea. China, Germany, and France all appear to be preparing for their own sets of new rules and laws to place the cryptocurrency market under control. Bitcoin traders are closely watching these developments as they continue to worry about the outlook for the digital currency over the short term.

BTC/USD traded at 11,219.5 on the Bitstamp exchange as of 13:30 GMT on Wednesday after rising to 11,422.8 at 12:45 GMT, the pair’s highest level since January 22. BTC/USD began trading today at 10,863.8.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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