When it comes to trading cryptocurrencies, South Korea is one of the biggest countries involved. Massive amounts of capital has been flowing into the markets from South Korea. However, rumors over the past few days regarding South Korean government imposing a ban on trading cryptocurrencies led to a global panic - leading to a crash in the cryptocurrency markets. Today, the government of South Korea has clarified stating no such ban is being planned.
The announcement to ban cryptocurrencies was first made by the South Korean Ministry of Justice. However, it now appears to be that this statement came independently from the ministry and was not an official governmental stance.
The Ministry of Strategy and Finance has stated that they do not stand by this statement and that there is going to be no ban on cryptocurrency trading in South Korea.
The announcement reads that there is no such plan to ban cryptocurrency trading in South Korea in the short term. However it appears that 'in the short term' was added just as a legal formality. The previous news which was circulated by the Ministry of Justice caused what is known as 'FUD' in the cryptocurrency markets - Fear, Unpredictability and Doubt - which often leads to people making wrong trading decisions under a situation of panic.
Following this new announcement today, over 60,000 people in South Korea have filed a petition to fire the head of Ministry of Justice, Park Sang-Ki over his statements of yesterday which led to large-scale panic in the global cryptocurrency markets.
Current reports from South Korea indicate that the government might actually be working towards regulating and encouraging the cryptocurrency markets.
Cryptocurrency markets function on sentiments and if a sizable amount of people begin to panic over announcements such as these, it is bound to have an impact in the markets - such as the recent crash in Bitcoin prices. Following the announcement, many cryptocurrencies, including Bitcoin witnessed a fall in the price.