Cryptocurrencies Plunge After South Korea Announces Ban

Cryptocurrencies in the market are in the midst of an enormous crash.

All cryptocurrencies are falling in the middle of a major selloff. Most cryptocurrencies have dropped by over 10 percent over the morning, and the price of bitcoin has fallen below the $12,000 mark.

A few days ago, bitcoin was marching towards the $20,000 mark. Today, it has dropped by more than 10 percent – taking the cryptocurrency down by almost 40 percent since last month. Overall, it has risen by more than 1,300 percent over the year.

Bitcoin is considered to be the best performing of the various cryptocurrencies over the morning.

The third largest cryptocurrency, Ripple, had plunged by as much as 25 percent amid major volatility. Ethereum, on the other hand, dropped by more than 15 percent.

The price of cryptocurrencies manages to fluctuate wildly, and far more abruptly compared to the other more traditional currencies and assets. However, the decline on Tuesday morning is considered to be extreme even in that market.

The said drop came amid the increasing suggestions in South Korea that officials might examine to impose new regulations on cryptocurrency. Kim Dong-yeon, the South Korean Finance Minister, suggested that the country might impose a ban on the trade of the currencies entirely, pending a review by the government.

The government has stated that the plans are considered only as a suggestion and that more discussions are needed. However, another government minister stated that trading could be prohibited last week, prompting another instant sell-off, and the plans have already drawn in 200,000 people to petition the government requesting to keep bitcoin trading legal.