South Korea Cryptocurreny Crackdown: Government Considers BitLicense-Style Rules For Crypto Exchanges

But Mr Aitchison said the new plans for a clampdown on cryptocurrency investing is now making trading more hard.

On Monday, European regulators warned consumers the cryptocurrency asset class is “highly risky” and that they have no protections against losses under EU law.

As for whether the past will be prologue in regard to investor profits, the report’s authors say “that is a big if”. However, after the ban of cryptocurrency trading in China, reports that South Korea and India may ban crypto trading affected the market in general causing a massive selloff of cryptocurrencies.

Data source: www.investing.com. Prices and daily changes as of 3:30 p.m. EST on February 13, 2018, and prices are rounded to the nearest cent where appropriate.

Bitcoin had a value of just $954 in January past year but saw its price soar more than 1,500 per cent throughout 2017.

That figure runs contrary to the results of a recent survey by Qualtrics, a credit score startup which found that almost 57 percent of 2,000 respondents reported some form of gains from cryptocurrency investments. That’s a rate of less than 0.04%.

Jagjit Chawla, general manager for Credit Karma Tax said the company was not too surprised that few people had reported cryptocurrency gains as Americans with more complex tax situations tend to file closer to the deadline.

Around 1 million people filed their taxes with Credit Karma’s service past year. Even so, 0.04% is an alarmingly low rate.

Cryptocurrency technology now allows users to make payments and store money on the internet without needing to use their name or a bank.

South Korea will also develop ways to tax virtual currencies, led by the finance ministry, and should announce measures within the first half of the year to develop the blockchain industry, Hong added. Naturally, investment into any currency is a risk, however the investments that you make can result in ridiculous amounts of profit. Just five months ago, the bank’s CEO, Jamie Dimon, was railing against bitcoin, calling it a “fraud”. “Some people think bitcoin’s spectacular price rise previous year was manipulated by a crypto token called Tether that’s supposed to be pegged to the U.S. dollar”.

On the other hand, looking at the ongoing scenario of the cryptocurrency market meltdown, the analysts at JPMorgan has issued a wake-up call to investors based on the technical charts while predicting that Bitcoin price can drop to 50% from the current levels to a low of around $4600 levels.

However, they also point out that the issuance of such a currency “would give non-banks access to the Fed balance sheet”, which could in turn “endanger the economically and socially important financial intermediation function of commercial banks”. That’s right – they think these 10 stocks are better buys. The Motley Fool has no position in any cryptocurrencies mentioned.