Almost all the major cryptocurrency witnessed a slump in their price action on Thursday after the South Korean regulators discussed the possibility of initiating tighter regulations on blockchain currencies in the country. The news had a wide-reaching effect because South Korea is one of the biggest crypto trading countries in the world. There is one major digital currency that didn’t draw back; it instead posted a gain after trading of the day was concluded.
Reports gathered by Reuters on Wednesday revealed that officials of the South Korean government are making plans to launch tighter cryptocurrency regulations. The country will likely impose new regulations on exchange platforms that trade digital currencies, with a ban on anonymous cryptocurrency accounts likely to be a part of the new regulations.
With this move, South Korea is paving the way for other regulators across the globe to follow. The blockchain industry in the country not long ago agreed to tighter transparency rules and larger asset requirements for Korean virtual currency exchanges, with those rules to take effect starting next week. The regulators are also planning to tax capitals gains from cryptocurrency trading.
While this was happening, the world’s third-largest cryptocurrency in terms of market cap, Ripple (XRP) took a big step forward. The ripple coin XRP witnessed a price surge while its major competitors plunged. XRP started trading at 0.6 cents per coin at the beginning of the year, fast-forward 12 months later and is now trading at $1.69, a 245 fold increase in a year.
The price increase recorded on Thursday by XRP is a result of the news report that came out of Japan. The Ripple development team partnered with a consortium of credit card companies with the aim of providing XRP to the hands and wallets of their customers. The Ripple foundation was established with the purpose of offering money transfer services and giving banks and consumers a low-cost way to transfer cash across international borders.
The addition of more credit card companies to its list of customers increases Ripple’s chance of achieving its long-term objective.
Ripple is concerned with addressing the real-world issue that affects money transfers such as slow rate and hefty transactions fees. IfRipple (XRP) achieves this fully, then the cryptocurrency will be more than just a speculative currency like the other cryptos.