<Anchor> It is a
friendly economic time. Today (25th) will be with reporter Kim Hye-min. I'm going to talk about bitcoin today, but these days it's really dropped a lot, the price.
<Reporter>
That's right. The market capitalization of domestic virtual currency has evaporated by nearly 40% in the last 10 days. There are many people around me who bought cryptocurrency and recently lost too much and came out with a loss.
One bitcoin expert was also investing in cryptocurrency with leverage, that is, lending, and was forced to liquidate when Bitcoin and Ethereum fell by more than 30%.
In the case of forced liquidation, if the value of the virtual asset you have is lower than a certain standard, you will need more collateral for the loan. So, it refers to a situation where the coins you have are forcibly sold and organized.
This bitcoin expert also said that billions of dollars of assets were liquidated, resulting in a quarter of the total assets being destroyed.
At the same time, when asked what would happen in the future, he said, "I plunged, but I can't figure out why, so it's difficult to respond." It is a phrase that shows the current situation of the virtual asset market as it is.
<anchor> That's
right. Reporter Kim, however, there is also a story that the current situation is very similar to the situation that fell sharply in 2018.
<Reporter>
The situation was very similar back then. Although bitcoin collapsed in 2018, it refers to altcoins, that is, coins other than Bitcoin. It went up and down in the short term for no apparent reason.
It was a technique to escape by handing bombs to individual investors while the'big hands' of the coin market induce a sharp rise in altcoins, and the market itself collapsed.
Even now, bitcoins are plummeting, but some altcoins are often soaring, even called'race horses'.
Individual investors are investing in these altcoins because they have the expectation that they can make a profit if they do'hit and fall' well.
Again, there is a situation of concern whether the big hands are handing over to individuals and preparing for the collapse.
Recalling the decline in 2018, bitcoin at the time exceeded 28 million won, and at the end of the year, it plunged more than 87% to 256 million won. Altcoins broke even worse, with most losses of 97-98%.
<Anchor> The
loss rate is really amazing. I think there may be a reason for this collapse this year.
<Reporter>
China has a great influence around the world. I'm Deputy Prime Minister Liu Hee, who is in charge of the Chinese economy. On the 21st, he said, "Bitcoin trading as well as mining is prohibited."
China has banned new issuance and trading of cryptocurrencies since September 2017. However, mining was closed, so China has been mining about 60% of the world's bitcoins.
In particular, there was a lot of mining in areas where electricity bills were low, but since this is banned, the virtual asset market was seen as a sign of a contraction.
In addition, cryptocurrency transactions have been banned in China at all, but Chinese people have been secretly making transactions between individuals using bank accounts or simple payment systems. In the future, it seems that measures will be taken to prevent this as well.
Earlier, the U.S. Treasury Department changed its policy to report all cryptocurrency transactions over $10,000 to the Internal Revenue Service.Bitcoin also plummeted at this time.
<Anchor>
Now, I saw the situation in China and the US, but there is a movement in Korea that places some restrictions on the transaction of bitcoin, that is, cryptocurrency?
<Reporter> As the
cryptocurrency fell sharply, a magnetic voice came out from the financial committee that manages this in Korea.
An official from the Financial Services Commission said, "It is regrettable that we did not preemptively regulate the market while the damage of young investors is increasing." Domestic banks are also struggling with cryptocurrency.
As I mentioned before, virtual asset exchanges must receive a deposit and withdrawal account from the bank that confirms the customer's real name by September.
Currently, there are only 4 banks and real name accounts. If a deposit and withdrawal account with a verified real name is not issued, the exchange must enter the closing process.
Recently, KB Bank, Hana Bank, and Woori Bank are known to have gathered internal opinions about not doing this business with a virtual asset exchange.
I was worried that I would get into a controversy that the bank would also be liable if a financial accident broke out later after opening a real name account. When this happens, small and medium-sized exchanges could suddenly close in September.
Therefore, I am concerned about the damage of investors who traded so-called'Kimchi Coins' that are distributed only in Korea. It is best to switch to an exchange with a bank and real name account in advance.