Hong Kong: Bitcoin slumped to the lowest level since December in Asia trading hours as cryptocurrencies continued a January sell-off amid rising scrutiny from global regulators.
Bitcoin fell by 18 per cent today to $11,000, before posting a slight recovery, following reports that a ban on trading of cryptocurrencies in South Korea was still a possibility spooked investors who fear greater regulatory involvement. Bitcoin is now down more than 30 per cent from the record high in mid-December. Rival cryptocurrencies are also down, including a drop of as much as 17 per cent in Ripple.
Investors “should be prepared to lose all their money” in bitcoin, said Steven Maijoor, chairman of the European Securities and Markets Authority, in a Bloomberg TV interview in Hong Kong. “It has an extremely volatile value, which undermines its use as a currency. And it’s also not broadly accepted.”
The ESMA warned retail investors against initial coin offerings in November and is monitoring developments in cryptocurrencies, Maijoor said.
China, which first began targeting the industry last year, is escalating its clampdown on cryptocurrency trading, targeting online platforms and mobile apps that offer exchange-like services, according to people familiar with the matter.
