A resurgent bitcoin worth seen its rally grind to a halt on Monday following a report that South Korean regulators tasked with combating money laundering and terrorist financing would probe monetary establishment accounts belonging to house cryptocurrency exchanges.
Bitcoin Price Rally Grinds to a Halt
Despite shedding a vital amount of market share throughout the face of a widespread altcoin rally, bitcoin managed to rise all through the primary week of the model new yr.
Over the weekend, though, the flagship cryptocurrency launched into a rally of its private. By Saturday night time, the bitcoin price had soared to $17,252 on Bitfinex, its highest mark since December 21 and an increase of virtually $4,000 from the place it began the yr.
However, shortly after reaching this mark the bitcoin worth entered a steep decline, and on the time of writing on Monday, it was shopping for and promoting at merely $14,989 — a 13 p.c decline from its Saturday peak.
South Korea Inspects Exchange Bank Accounts
The decline appears to be at least partially linked to a report from regional media outlet Yonhap that South Korean regulators are planning to conduct an “intensive probe” into monetary establishment accounts belonging to South Korean cryptocurrency exchanges.
The inspections, which shall be overseen by the Financial Services Commission (FSC), search to resolve whether or not or not banks have complied with anti-money laundering insurance coverage insurance policies when servicing house bitcoin exchanges, which have reportedly deposited larger than 2 trillion acquired ($1.8 billion) at Korean banks.
The probe comes as regulators have sought to tighten inflows of fiat currency into Korean exchanges and curb the nation’s heated cryptocurrency markets, which recurrently worth money and tokens at excessive premiums relative to their worldwide frequent prices.
Traders are clearly concerned about what regulators will uncover as soon as they conduct their inspections, as correctly as how they’re going to reply within the occasion that they deem an account to be non-compliant. Korean officers have not ruled out shutting cryptocurrency exchanges down in the end for failing to alter to guidelines, so the switch would possibly finish in a turbulent week for the markets as retailers await an official report.
Notably, this uncertainty appears to have dwarfed totally different bullish bulletins, basically a very powerful of which is that the New York Stock Exchange (NYSE) has filed to document leveraged Bitcoin ETFs on its Arca shopping for and promoting platform, an event that may extra cement cryptocurrency as a mainstream asset class.
Write to Josiah Wilmoth at josiah.wilmoth(at)ccn.com.
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