Bitcoin falls over on 10% Thursday morning as South Korea's justice minister said that its government was preparing a bill to ban cryptocurrency trading through exchanges in the country.

South Korea has been one of the biggest markets for currencies like Bitcoin and Ethereum. Its top cryptocurrency exchanges including Coinone and Bithumb were raided for alleged tax evasion. The exchanges were asked to disclose paperwork.

The decision to control cryptocurrency trading comes after an increase in daily trade volumes. The minister said that virtual currencies are being traded at a hefty premium as there is a herd behaviour showing how strong the demand is. South Korean exchanges have been selling at a premium of about 30 percent compared to other countries. Its practices have been compared to "gambling".

Without disclosing specifics, the minister said that the government was working on implementing measures.