CRYPTO TRANSACTIONS PARTIALLY HALTED

[Anchor Lead]

Virtual currency trade exchanges are halting some transactions ahead of mandatory reporting to financial authorities. Investors can't get a clear explanation on the criteria for suspending transactions.

[Pkg]

This virtual currency can be used like a credit card at some 70000 facilities including convenience stores and cinemas. This is possible because of an alliance with the relevant businesses. Last year it was listed on the number-one virtual currency exchange in Korea.

[Soundbite] (Virtual currency investor(VOICE MODIFIED)) : "Although it's not as big as bitcoin, I thought it was safe to invest in it because it's one of a handful of virtual currencies that can be used in real life."

Starting from June 18, this virtual currency can no longer be exchanged for the Korean won. Last year the exchange announced the suspension of won transactions for four virtual currencies. It also disclosed the names of 25 other currencies that could be halted.

[Soundbite] (Virtual currency investor) : "The value of my coins plunged 40-50 percent following the announcement. I had no choice but to sell them despite losses."

Trade exchanges ranking second and third have also been announcing the lists of virtual currencies subject to suspension. The move is reportedly designed to protect investors in line with their own criteria. But no explanation of the so-called criteria has been provided so far.

[Soundbite] Park Sung-jun(Dongguk University) : "The market is in a turmoil because information is not being disclosed. There is insufficient information for investors to tell whether a certain virtual currency exchange is good or not."

There's strong backlash from virtual currency development companies and investors.

[Soundbite] (Staff at virtual currency development company) : "There was no clear explanation of why our listing was scrapped or what can be done to improve the situation."

With major exchanges scrapping the listing of virtual coins, the lists of other virtual currencies that could be expelled soon are posted online one by one.