South Korea’s 2018 Crypto Ban Threat: How It Crashed Bitcoin and Ethereum Prices

On January 11, 2018, South Korea, a global cryptocurrency trading powerhouse, sent markets into a tailspin when its justice minister announced plans to draft a bill banning all cryptocurrency trading. The news, reported by CNBC, caused Bitcoin to plummet over 12% and Ethereum to drop 7.6%, reflecting South Korea’s critical role in the crypto ecosystem. As one of the largest markets for Bitcoin and Ethereum, the threat of a trading ban sparked widespread panic, amplifying the infamous “kimchi premium” and exposing the volatility of speculative crypto markets.