Bitcoin Falls Below $10,200 as Regulators Tighten Scrutiny of Cryptocurrency Market

Bitcoin prices continued to plunge Wednesday, falling to the lowest levels since early December and extending their bear-market decline to nearly 45%.

 

 

The main reason is that since yesterday, regulators around the world have multiplied warnings on cryptocurrency speculation:

 

1/ South Korea’s Yonhap news agency reports that Finance Minister Kim Dong-yeon is ready to reveal details of an earlier plan to crackdown on cryptocurrency speculation in one of the world’s largest markets.

 

2/ In the meantime, in a Bloomberg TV interview, Steven Maijoor, chairman of the European Securities and Markets Authority, who told the group that investors should be prepared to lose all of their cash if they invest in digital currencies.

 

3/ According to Russian press (Kommersant), PM Medvedev warned on the risks linked to cryptocurrencies.

 

4/ Reuters also reported the contents of a memo circulating within the People’s Bank of China indicating that Vice Governor Pan Gongsheng said the government would continue to apply pressure to the virtual currency trade and prevent the build up of risks in that market.

 

5/ According to Reuters, Germany’s central bank, the Bundesbank, also weighed in Tuesday, with a warning from board member Joachim Wuermeling that any moves to regulate the growing cryptocurrency craze would need global coordination

 

6/ Later, Chinese local press (Shanghai Securities News) reported that Shanghai Stock Exchange has taken actions including suspending shares, requiring company clarification and asking for risk disclosure against some stocks amid speculation of blockchain concept.

 

7/ Finally, another Chinese local media (Securities Times) highlighted that Chinese government agencies including the central bank, cyberspace administration, Ministry of Industry and Information Technology will step up crackdown on cryptocurrency market in joint effort