The cryptocurrency market recently hit with a direct hit by the simultaneous enforcement of regulations by three countries including Korea, China and the United States. In particular, in Korea, there is a strong analysis that the virtual money bubble will be released as the regulations from the government are visible, adding to mobile regulation from China and taxation from the United States. Bitcoin prices, which rose to a maximum of KRW 25 million at the beginning of the year, fell to KRW 17 million in 10 days as the risk of such regulation increased.

According to Bloomberg News and the Coin Desk of the virtual currency information site on January 16, the Chinese financial authorities have started to block similar online platforms and mobile apps as well as virtual currency exchanges.

The Chinese government has already shut down its virtual currency exchange in the past year, and has also blocked all over-the-counter (P2P) exchanges operated by OK Coin and Huobi. The virtual money market has plummeted on the last two days as news that the Chinese authorities have instructed them to stop bitcoin mining in each province are reported by foreigners such as the Wall Street Journal (WSJ).

The US, which allowed the world`s first virtual currency futures trading, is not in the mood. CNBC, the nation`s second-largest trading partner, said on Monday that the world`s virtual currency market cap would rise to around 1060 in the next five hours, citing the coin market cap, (USD 113 billion).

Earlier, Warren Buffett, Berkshire Hathaway, stated on CNBC, "It`s clear that virtual money will be the end of the bad," he said. "It`s a five-year put option for all virtual currencies I would be willing to do so if I could live."

Meanwhile, domestic demand for virtual currency regulation should be strengthened. Kim Dong-yeon, the deputy prime minister of economy and planning and finance, said, "The closure of the virtual currency exchange is also a viable option."

"It is the government`s position that irrational speculation about virtual money is much needed, and that some form of rational regulation is needed," Kim said in a radio broadcast.

As the high intensity regulations of major countries including Korea have become concrete, the domestic virtual money market, which has continued its long jump, continues its downward trend. Some investors who believed in the possibility of a virtual currency in the past have turned to short-term investments due to the announcement of government measures and the subsequent warning from the ministers and vice ministers.

Cryptocurrency experts expect the bubble in the virtual currency market, which has so far exploded abnormally, to gradually stabilize downward through regulatory issues.

By Kim Dong Wook east@


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