In response to the flurry of activity, the South Korean government has gone so far as to label the trend "irrational".
The South Korean government looks to be tightening their grip on cryptocurrency speculation, as well as establishing new taxation measures for exchanges.
Currently, banks in the country are barred from working with cryptocurrency exchanges, a move aimed at curbing, what the government believes to be, an alarmingly high interest in speculative investments.
The good news is that South Korea isn't about to ban cryptocurrency trading outright. Other crytocurrencies, such as Ether, have also fallen sharply in the past week.
According to Bithumb, the country's second-largest virtual currency exchange, the bitcoin price in South Korea was down 4.35 per cent at $12,567 (8,987.34 pounds) from previous day as of 0214 GMT on Tuesday.More news: Ben Simmons, Joel Embiid, Lonzo Ball highlight NBA Rising Stars rosters
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We knew this was coming, with government officials in South Korea confirming earlier this month that they were planning a crypto crackdown due to concerns that exchanges are being used for money laundering and tax evasion.
The new rules also require cryptocurrency exchanges to share data of their users' transactions with the six banks authorized to open the new trading accounts.
In its most recent statements, the country's Financial Services Commission (FSC) confirmed that exchanges must only permit trades from customers whose name matches their bank account. Bithumb, one of the biggest in the country, is expected to pay 60 billion Won or about $55.8 million Dollars in corporate and local income taxes.
According to figures from CoinMarketCap, at the time of publishing, the digital currency is valued at $10,407; however, late morning trading saw that it had dipped to $10,129. Another report says that children below 19 years will not be allowed to buy Bitcoins and even the foreigners not holding local bank accounts will be allowed to trade.
"As previously announced, in order to comply with the identification and anti-money laundering regulations being enforced by the government, the current KRW deposit method will be terminated by the end of January 2018". Cryptocurrency was popular among investors amid it potential to make anonymous transactions.