There have also been reports that China’s government is discouraging mining in the country, home to the majority of that process.
“Some interpreted these announcements to mean China will completely shut down mining operations,” said Bloomberg New Energy Finance China analyst Sophie Lu said. “Others feel that regulators are only tightening enforcement” on a process that in any event can move to other countries without threatening bitcoin’s future.
At the same time, buying interest seems to swell unabated. The world’s biggest cryptocurrency exchange, Hong Kong-based Binance.com, said it’s adding “a couple of million” registered users every week, with 240,000 people signing up in just an hour on Wednesday. And Russia’s Finance Ministry wants to allow trading cryptocurrencies on “official” exchanges, but Bank of Russia is currently against any trading, Deputy Finance Minister Alexey Moiseev said Thursday.
In Korea, it’s unclear whether the justice ministry’s proposal will be approved by other government ministries and parliament. The plan has spurred a backlash on social media, while a petition opposing the measure on the president’s website has attracted more than 54,000 names.
Work-Around
Even if lawmakers push forward with the exchange ban, local investors are likely to find ways to keep buying cryptocurrencies, said Mike Kayamori, head of Tokyo-based exchange Quoine, which counts Koreans among its customers.
“There are always underground exchanges” and over-the-counter platforms, he said. “They’ll probably convert their money into bitcoin there, and then start trading offshore.”
This article was provided by Bloomberg News.