eBusiness Weekly
Bitcoin slumped by the most since September, giving new impetus to a January selloff in cryptocurrencies that coincides with rising scrutiny from regulators in many countries.
The largest digital coin fell 12 percent to $12,255 at 9 a.m. in London, the lowest level since Dec. 5, according to composite pricing on Bloomberg, bringing an end to its two-day rally. Bitcoin earlier was down as more than 40 percent from its record high in mid-December. Rival cryptocurrencies alsotumbled, with Ripple diving as much as 28 percent.
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, particularly online platforms and mobile apps that offer exchange-like services, according to people familiar with the matter. – Bloomberg
