Korean Lawmaker Shows Evidence Government Embargo Led to Market Manipulation

A South Korean lawmaker has shown how the government’s announcement policy enabled market manipulation last week following the news of possible cryptocurrency trading shutdown. According to his evidence, reporters and officials had 40 minutes to buy the dip as the price of bitcoin in Korean won reversed and rallied.

Also read: South Korean Officials Caught Trading On Insider Knowledge of Crypto Regulations

Embargo Enables Market Manipulation

Representative Ha Tae-keung of the South Korean Bareun Party held a press conference at the National Assembly on Friday to assail the current practice of regulatory announcements. “The government intervened in the virtual currency market and led the manipulation of the market,” he was quoted by Asia Economy. Korea Joongang Daily elaborated:

An opposition lawmaker Friday blasted the government for putting an embargo on an announcement about bitcoin regulations Monday – giving reporters and officials 40 minutes to snap up cryptocurrencies.

Ha explained that “the government informed reporters at 9 a.m. last Monday of its impending announcement with an embargo attached, which was lifted at 9:40 a.m.”

Korean Lawmaker Shows Evidence Government Embargo Led to Market Manipulation
Ha Tae-keung’s presentation.

Prior to the announcement, traders learned that the regulators could ban cryptocurrency trading. However, Chung Ki-joon, head of the Prime Minister’s Economic Policy Coordination, prepared to announced that “the government’s changed [its] position on digital currency regulations at 9:40 a.m. on Monday, saying the government would not shut down cryptocurrency trading,” the news outlet conveyed. “Anyone who knew the government would ease its stance on digital currencies could anticipate a rally and buy before it took off.”

The lawmaker was quoted saying:

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