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Youbit announced on its website that it had been hacked on Tuesday, causing a loss worth 17 percent of its total assets. The South Korean exchange didn't elaborate on the exact amount, but said all customers' cryptocurrency assets would be marked down to 75 percent of its value, and that it was stopping trade to minimize customer losses.
The cryptocurrency exchange had been hacked once before in April when nearly 4, Bitcoins were stolen in a cyber attack that the country's spy agency linked to North Korea, according to a South Korean newspaper report on Saturday.
Youbit is a smaller player in South Korea's cryptocurrency market, with the world's busiest cryptocurrency exchange Bithumb accounting for about 70 percent of the country's market share. The news comes as South Korea last week banned its financial institutions from dealing in virtual currencies such as Bitcoin, as the cryptocurrency soars in a bubble fueled by retail speculators, many of them from the country. South Korea has emerged as a hotbed for cryptocurrency trading, accounting for some 20 percent of global Bitcoin transactions.
But trading in the virtual currency has been overshadowed recently by a series of warnings from politicians and financial experts about risks. Axel Weber, chairman of the Swiss bank UBS, warned this week that anyone keen to invest in Bitcoin risked losing their money. Denmark's top central banker later weighed in, saying people buying Bitcoin should not blame regulators if they suffered losses when the market crashed because it was an unregulated market.
He said putting money into bitcoin was basically gambling. Bitcoin exchanges and wallets have a history of being targeted, and security experts say they become more vulnerable to cybercrime as valuations rise. The European Union has agreed to implement stricter rules on exchange platforms that deal with virtual currencies, including bitcoin.
The measure is part of an effort to prevent terrorist financing and money laundering. Few people use bitcoin to buy anything — but everyone pays for its environmental impact. Does mining the cryptocurrency actually consume more electricity than Ireland? Cryptocurrencies have grabbed a lot of attention in recent days as the value of bitcoin skyrocketed to hit record highs and Venezuela announced plans to create a digital currency called "petro.
A further drop in the value of Bitcoin and other cryptocurrencies has recently left investors nursing heavy losses. Many proponents are holding out for a new breakout, if their digital assets can go mainstream. The best-known cryptocurrency, Bitcoin, has been around for 10 years and its history so far has been one of ups and downs. The financial world is still split down the middle over the future of the virtual currency.
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Change it here DW. COM has chosen English as your language setting. COM in 30 languages. Deutsche Welle. Audiotrainer Deutschtrainer Die Bienenretter. Business South Korean Bitcoin exchange shuts down after hack Cryptocurrency exchange Youbit is filing for insolvency after it was hacked for the second time this year, highlighting concerns for security amid booming trade in Bitcoin and other virtual currencies boom.
Ban amid warnings Youbit is a smaller player in South Korea's cryptocurrency market, with the world's busiest cryptocurrency exchange Bithumb accounting for about 70 percent of the country's market share. Never-ending rally? Bitcoin takes off in Venezuela. Bitcoin: EU approves cryptocurrency clampdown to combat terrorism financing The European Union has agreed to implement stricter rules on exchange platforms that deal with virtual currencies, including bitcoin.
Bitcoin energy boom stamps down colossal carbon footprint Few people use bitcoin to buy anything — but everyone pays for its environmental impact.
Bitcoin, cryptocurrencies — how do they work? Date Related content. Trial for murder of reporter Jan Kuciak begins in Slovakia. Poland: Thousands protest government proposal to punish judges. Merkel defends immigration, climate policies in Bundestag.
The popularity of the field has also made South Korean markets vulnerable to hacking. One major exchange in the country has been shut down as a result of hacking activities and will declare bankruptcy. The Youbit exchange has announced that it will be declaring bankruptcy after crjptocurrency been hacked into for the second time this year. The exchange lost about 17 percent of its assets in a hacking attack. This comes a few months after another hack where close or 4, bitcoins were stolen. This totaled nearly 40 percent of the assets the exchange held. Details on who could have orchestrated these two hacks are unclear.
South Korean bitcoin exchange shuts down after hacking | Insurance Business
A South Korean exchange trading bitcoin and other virtual currencies declared itself bankrupt on Tuesday after being hacked for the second time this year, highlighting the risk over cryptocurrencies as they soar in popularity. The Youbit exchange said it had lost 17 percent of its assets in the attack on Tuesday. It came eight months after nearly 4, bitcoin -- then valued at 5. All its customers will have their cryptocurrency assets marked down by 25 percent, it said, adding it would do its best to "minimise" their losses by using insurance and selling the remains of the firm. The exchange -- founded in -- brokered trades of multiple virtual currencies including bitcoin and ethereum. It is the first time that a South Korean cryptocurrency exchange has gone bankrupt. Investing in virtual currencies has become hugely popular in the hyper-wired South, whose trades account for some 20 percent of global bitcoin transactions.
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Bitcoin fell Thursday after the South Korean Financial Services Commission took more steps to limit speculation in cryptocurrency trading in the country. There was no aftrr explanation for the sudden, one-day decline that day. On Thursday, the South Korean commission said in a statementtranslated by CNBC, that it is prohibiting cryptocurrency exchanges from issuing new trading accounts.
If an exchange does allow new accounts, the government has the ability to take action to exchabge stop trading or shut the exchange down, the statement said.
According to an English language Facebook post by the Commission, the rules would take effect in January. Click the following article commission added that since much of the cryptocurrency trading was being done anonymously, users must now use their real names and anonymous trading source no longer allowed.
The government also indicated it would closely monitor banks and would "swiftly" step in to limit fund flows into cryptocurrencies if necessary. Earlier this month, authorities in the country had prohibited minors and non-residents from opening accounts. Bitcoin trading in South Korean won fell slightly Thursday to about 6 percent of total volume, according to CryptoCompare. The website showed interest from South Korean traders has grown steadily in the last 10 months, sometimes accounting for more than 12 percent of total bitcoin trading volume.
Demand from South Korean here has also contributed significantly to gains in other cryptocurrencies such as ethereum and Ripplealso known as XRP.
Bitcoin has proved resilient to regulators so far. But the cryptocurrency has since more than recovered and is up nearly 1, percent for the year, according to CoinDesk. In less than a decade, what was a fringe product has become a globally traded asset. The Chinese yuan once dominated bitcoin trading, but today the Japanese Yen and the U. CME, the world's largest futures exchange, and its competitor, Cboe, also launched bitcoin futures this month.
Data also provided by. Skip Navigation. Markets Pre-Markets U. Key Points. On Thursday, the South Korean commission said in a statement, translated by CNBC, that it is prohibiting cryptocurrency exchanges from issuing new trading accounts. Koreea to a Facebook post by the Commission, the rules would take effect in January.
The commission adds that since much of the cryptocurrency trading was being done anonymously, users must now use their real names and anonymous trading is no longer allowed. VIDEO Closing Bell. The Bottom Line. Still, not everyone is spooked exchwnge the tougher rules. Digital Original. Related Tags. Trending Now. Trump has been impeached by the House. Here's what happens. News Tips Got a confidential news tip? We want to hear from you.
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Please log in to continue reading. The controversial law could affect Poland's EU membership. Get our introductory offer at. South Korean bitcoin exchange shuts down after hacking. Trial for murder of reporter Jan Kuciak begins in Slovakia. The exchange -- founded in -- brokered trades of multiple virtual currencies including bitcoin and ethereum. With so many small South Korean investors diving into bitcoin, authorities are getting worried about the potential impact of a crash. Youbit is a smaller player in South Korea's cryptocurrency market, with the world's busiest cryptocurrency exchange Bithumb accounting for about 70 percent of the country's market share. A cryptocurrency exchange in South Korea has declared bankruptcy and will shut down after it was hacked for the second time this year. The country contributes around a fifth of all global bitcoin transactions, with around one million South Koreans, mostly small-time investors, engaging in bitcoin trading. Global bitcoin prices have soared around fold this year. It is the first time that a South Korean cryptocurrency exchange has gone bankrupt.