Many South Korean banks had been reluctant to open bank accounts which were to be used for cryptocurrency trading because of its ambiguous and uncertain legal position.
With South Korean exchanges generally responsive to their proposals, the government there now seems to be happy with how things stand, Heung-sik going so far as stating: "the government will encourage banks to make transactions with cryptocurrency exchanges".
On the Luxembourg-based Bitstamp, bitcoin rose as high as $11,700 BTC=BTSP and was last at $11,511.
South Korea government employee who was involved in coordinating efforts to regulate cryptocurrency trading was found dead on Sunday.
Bitcoin is trading at a three-week high of $11,160 on the Biststamp exchange after falling as low as $5,920.72 in early February.
South Korea has been advocating for regulatory supervision of cryptocurrency trading as locals, including students and housewives, have entered the market despite inherent risks and warnings from policymakers. Officials later clarified an outright ban is only one of the steps being considered, and a final decision was yet to be made, said Reuters.
No one knows how the price of Bitcoin will change tomorrow. With the recent crash, Bitcoin took nearly all altcoins down with its self, and this showed investors around the world that the high correlation between Bitcoin and other cryptos is highly risky. Ethereum, the second-largest by market value, was down 1.3 percent over the past 24 hours at $935.02, while the third-largest, Ripple, fell 1.6 percent to $1.13, according to cryptocurrency price tracker coinmarketcap.com.
The system was also the government's latest measures to curb speculative investment in virtual coins.
However, those who have been investing in cryptocurrency for any period of time know that the Bitcoin price and value is incredibly volatile, and has seen massive spikes and drops over the course of its short life.
Zaif, an exchange run by Osaka-based Tech Bureau Corp, said on Tuesday a problem in its price calculation system allowed seven customers to trade a cryptocurrency with no yen value for around 20 minutes on February 16.