Bitcoin, Ethereum, And Other Cryptos Tumble As Regulatory Noose Tightens

Chinese regulators will seek to prohibit domestic access to foreign platforms that "enable centralised trading" as well as "target individuals and companies that provide market-making, settlement and clearing services for centralised trading", sources told Bloomberg.

In 2017, China had already authorized local cryptocurrency exchanges to close their businesses and banned ICOs.

In South Korea, shutting down cryptocurrency exchanges is still an option, Finance Minister Kim Dong-yeon said in an interview with TBS radio.

"Explaining moves in bitcoin is always tricky but this plunge. may well be a result of recent signs that regulatory pressures are building", said Neil Wilson, analyst for ETX Capital, as several countries, notably China and South Korea, target a crackdown.

Last week, the justice minister's remark that the country will ban bitcoin and other digital currencies triggered big sell-offs and a public outcry. Has Germany become one of the most progressive and forward thinking nations in the world in terms of currency?

"[It] seems like it's uncertainty spooking the markets ... with regulations unclear", said Charles Hayter, founder of data analysis website Cryptocompare. Now, South Korea has come out and said they are considering banning cryptocurrencies. It had fallen Tuesday as low as $11,183, a level last seen in early December, and it stands far below a mid-December peak above $19,000.

The price of bitcoin was fluctuating at juts under $12,000 by publication time, according to Bitstamp.

The Central Bank of China in September had banned betting on bitcoin and other cryptocurrencies. The entire crypto business is taking a huge hit, being swept by a wave of negativity based on fresh crypto regulation news from South Korea and China. According to Coinmarketcap, around 58% of Ripple's current 24-hour trading volume have been generated by four South Korean platforms - Bithumb, Upbit, Coinone and Korbit.

At the same time, Ripple - the "establishment's cryptocurrency" - has given back about 60% of its market value over a two week period.

A day before, the cryptocurrency market cap as a whole was about $699 billion, but bad news coming from Asia kicked it down by more than 22% - to $539 billion.

  • Zachary Reyes