The value of Bitcoin and other cryptocurrencies has nearly halved in Korea, home to one of the world’s biggest digital currency markets, in recent 10 days as Seoul government stayed defiant of investors’ protest and unrelenting in its clampdown on cryptocurrency trading.

Local price of the most well-known Bitcoin more than halved to around 12,500,000 won ($11,695) in the morning trade on Wednesday from its all-time high of around 25,500,000 won reached on Jan. 7 on Bithumb, the largest exchange in Seoul.

At 2:00 p.m. Thursday, the Bitcoin was trading at 14,652,000 won ($13,683) and Ethereum at 1,299,900 won on the Bithumb, while two averaged at $11,373 and $1,003, respectively, on CoinmarketCap, one of the world’s largest exchanges. During their peak, the Bitcoin and other popular currencies exchanged hands in Korea nearly 30 percent higher than in the overseas market.

The market, jittery after the government`s reiterations that shutdown in virtual currency exchanges is an option still on the table and reports that it is pursuing taxation on trade and profits from cryptocurrencies, underwent another rout amid rumors that Beijing could ban peer-to-peer trade after closing down virtual exchanges.

Deputy Prime Minister for economy Kim Dong-yeon dealt another blow to the market that regained stability after the Blue House issued a denial to the bombshell warning from the justice minister that the government will propose a special act to ban cyptocurrency trading by saying the shutdown option was still “alive.”

The Blue House, bombarded with public petitions opposing the strict regulations on cryptocurrencies, is said to be discussing with the government and ruling party of closing down exchanges that do not comply with its rules of real-name transactions.

The market also received upset from overseas upon reports that Chinese government is mulling to block domestic access to peer-to-peer trading platforms such as social networks that allow locals to trade overseas.

Seoul authorities, which have been enforcing real-name trade in cryptocurrency, are said to be planning to draw up taxation to include the levies in the tax code for next year after storing data based on real identities of the traders. Trade and profits made from cryptocurrencies could be levied as in securities that impose tax rates from 6 percent to 42 percent depending on the profit gains.

By Cho Si-young and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]