Given the low levels of trading and relatively small number of people holding virtual currencies, wild price swings have become the norm, leading to an argument that paying too much attention to price rises and falls is a fairly futile exercise.
Scrutiny
Digital currencies such as Bitcoin have surged in value over the past year - driving a huge demand. That has led to concerns about gambling addiction as inexperienced investors try to ride the wave.
"There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," said Justice Minister Park Sang-ki.
It is understood the department is preparing legislation that would allow the exchanges to be shut down.
The crackdown in South Korea by authorities included a raid on the country's second largest virtual currency operator, Bithumb.
"We were asked by the tax officials to disclose paperwork and things yesterday," an official at the firm told Reuters, requesting anonymity.
The government had already said in December that it would apply more scrutiny to the exchanges, including moves to curb anonymous trading.
Read the original article on BBC.
More about: #Bitcoin
