No Bitcoin for Minors: South Korea Begins Laying The Hammer on Bitcoin

Various ministries of the South Korean government have met to pass measures that would restrict access to Bitcoin and make its institutional investment illegal.

The South Korean government decided today to pass a package of measures that intend to cut down on the amount of speculation and criminal activity that surrounds cryptocurrencies in the country.

Some of the measures ban minors from participating in the local cryptocurrency world and removed the right of financial institutions to invest in them in any way.

This was decided during an emergency meeting between a few officials in some of the ministries, including the ministries of justice, finance, science, and information technology.

According to the Korea Herald, the package discussed by the government includes an obligation to check the personally identifiable information of people making bank transactions to or receiving them from any organization that deals with cryptocurrencies.

Officials from the South Korean government said that they would mount political pressure to pass legislation that protects investors and provides transparency in the country’s cryptocurrency space.

A week ago, Novogratz had an interview with CNBC in which he explained his concern about regulations as cryptocurrencies grow stronger.

“I’ve got concern that if price movements go higher we’re going to get more regulation… One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. I could legitimately see Bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk,” he said.

This may well be one of the examples he speaks of, as South Korea is considered one of the major hubs for Bitcoin commerce.

The craze in the country has grown to such levels that Shinhan Bank—one of the first banks to ever operate in South Korea—started testing solutions to include digital wallet servicesfor Bitcoin and other cryptocurrencies.

It’s unlikely that the Bitcoin fever in the country will die down, but trading may be impactedover the next few days.

However, Bitcoin’s price dropped only 1.11 percent over the last 24 hours and is holding strong around $17,000, despite the announcement by the South Korean government.