According to the government, the trading prices of most virtual currencies are much higher on South Korean exchanges than they were on exchanges in other countries

As bitcoin and other crypto currencies are fast-gaining acceptance in South Korea, the government plans to introduce new measures to regulate its trading on virtual currency exchanges, according to a report by Reuters.

The government said in statement that it will introduce new legislation to allow regulators to shut down virtual coin exchanges if required. Plus, it will impose a ban on opening anonymous cryptocurrency accounts.

“The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility,” said the statement.

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The government believes that trading prices of most virtual currencies are much higher on South Korean exchanges than they were on exchanges in other countries.

South Korea had previously announced its plan to tax capital gains from cryptocurrency trading to tackle what it sees as the risk of excessive speculation.

In South Korea, bitcoin has been extremely popular, drawing wide participation from housewives and students.

In September, South Korea imposed a ban on fundraising through all forms of virtual currencies.

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