South Korean Banks Abandon Bitcoin Because of the Government’s Regulations

Major South Korean banks are to ban cryptocurrency transactions

Two of the major South Korean banks are going to cease cryptocurrency transactions. As reported by Korea Biz Wire, Shinhan Bank will stop providing cryptocurrency related services on January 15 and KB Kookmin Bank on January 22.

Both banks have their own reward systems allowing customers to earn points for using their credit cards. Owing to their partnership with the Coinplug cryptocurrency exchange, customers can redeem earned points in Bitcoin.

The most obvious reason for such a ban is the “emergency” regulations imposed by the South Korean government upon cryptocurrencies in order to minimize the side effects of BTC transactions and reduce speculative investment.

Previously, the government inspected 13 of the largest South Korean cryptocurrency exchanges including  Bithumb, Coinone, Korbit and Upbit, having recognized their security systems as non-compliant with necessary requirements.

Notably, South Korea is one of the largest cryptocurrency markets in the world. It has been trading BTC with the highest premiums ever which caused the overall BTC price uplift in the market. Cryptocurrency regulations and the refusal of major banks in the country to deal with Bitcoin will probably cause some bearish trend and we might possibly see a drop of BTC and other cryptocurrency prices. Or maybe not.

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