Bitcoin prices plunge amid heightened warning from regulators

The Korea Times

The Korea Times

Finance

Mon, October 2, 2023 | 01:32

Markets

Bitcoin prices plunge amid heightened warning from regulators

Posted : 2021-04-23 15:14

Updated : 2021-04-24 09:11

Financial Services Commission Chairman Eun Sung-soo speaks during a National Assembly meeting in Yeouido, Seoul, Thursday. Yonhap

By Lee Min-hyung

The price of major cryptocurrencies in Korea are plunging amid a series of heightened warnings from regulators here. The Bitcoin price here stood at 50.06 million won ($50,000) as of 11 a.m. at Upbit, a Seoul-based cryptocurrency exchange, down 6.61 percent from a day earlier.

The price of the world's largest cryptocurrency soared to a record high of 80 million won in mid-April, but has since displayed a downward spiral.

An unprecedented cryptocurrency craze here has been a major factor in driving up the values of major digital assets. But warnings have surfaced again that retail investors should think twice before jumping on the bandwagon, as the high volatility of cryptocurrency prices poses huge uncertainties.

The price of Dogecoin, a meme-based cryptocurrency, also plunged 17 percent Friday morning from a day earlier. Dogecoin's market capitalization recently topped $50 billion, but has now fallen below the $40 billion mark.

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The price falls of major virtual assets is attributable to repeated gestures by authorities to crack down on any speculative transactions involving them.

Regulators, such as the Financial Services Commission (FSC) and the Bank of Korea (BOK), are voicing increasing concerns over the cryptocurrency trading fever particularly among younger Koreans.

"Virtual assets have too many restrictions in terms of their usage as a means of payment," BOK Governor Lee Ju-yeol said at a recent press conference. "We maintain our position that they do not have any inherent value."

FSC Chairman Eun Sung-soo also remained skeptical over cryptocurrencies, hinting at the possibility of introducing tighter regulations against any speculative trading involving digital assets.

"My biggest worry is that virtual assets becoming institutionalized could trigger a boom in speculative trading," Eun said. He also made it clear that authorities will not take responsibility for any losses stemming from cryptocurrency investments.

mhlee@koreatimes.co.kr