Crypto bulls rejoiced on Saturday when a report in South Korea’s Chosun Ilbo repudiated the Justice Ministry’s warning that it would seek to stifle digital-currency trading in South Korea, and instead, the country is planning to implement a real-name accounting system. The news effectively put an end to the confusion surrounding the future of cryptocurrency policy in one of bitcoin’s most active markets.
Alas, the relief rally was short-lived.
Cryptocurrencies are sliding again on Sunday, with only 2 of the top 20 currencies trading in the green, according to CryptoCompare.
Of course, South Korea isn’t the only country rushing to create a regulatory framework that would presumably help bring digital currencies into the mainstream: Treasury Secretary Steven Mnuchin said this week that US regulators are forming a cryptocurrency working group.
The selloff appears to have coincided with the Central Bank of Indonesia issuing a press release warning its citizens against the use of selling, buying or trading cryptocurrency and reiterating that virtual currencies are vulnerable to bubbles and manipulation, which is why they’re not legally recognized within Indonesia.
“Virtual currencies are vulnerable to bubble risks and susceptible to be used for money laundering and terrorism financing, therefore can potentially impact financial system stability and cause financial harm to society.”
Ripple Labs shot higher earlier this week after payments service MoneyGram said it would use Ripple Labs’ technology in its product.
But it unwound some of those gains this weekend after MoneyGram clarified that it is only using Ripple’s tech in a pilot program.
To be sure, the market wasn’t totally lacking in good news. As CoinTelegraph reports, the Russian Ministry of Finance has drafted a bill to legalize the trading of cryptocurrencies on approved exchanges, removing the threat of a crackdown that had once been raised by Deputy Finance Minister Alexei Moiseev.
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