South Korea Considers Crypto Regulation

Fox Business is reporting: “New proposed legislation in (South) Korea will ban the use of anonymous cryptocurrency accounts starting next month and prevent banks from providing settlement services for unidentified digital-currency trades on bitcoin exchanges.”

This follows the shut down and bankruptcy of YouBit, a cryptocurrency exchange in Seoul that was hacked and lost 38 billion won ($35 million) in digital currencies.

The mania can be illustrated by the example of Long Island Iced Tea changed its name to Long Blockchain Corp. Its stock price soared almost 300% on the news of the name change, with more than 15 million shares trading on that day, compared to the average daily volume of about 170,000 shares, according to Bloomberg.

It’s only a matter to time before the government crack down.


About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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