Another sharp fall for Bitcoin amid fears of regulatory clampdown

Cryptocurrency began 2018 on a downward spiral

Just a day after falling to a four-week low, Bitcoin continued its slide today amid reports that the governments of China and South Korea were looking to ban trading of cryptocurrencies.

The value of bitcoin was as low as $10,567 on the Luxembourg-based Bitstamp exchange, from its peak value of $20,000 last December.

Yesterday’s decline was followed by South Korea’s finance minister Kim Dong-yeon saying that banning trading in digital currencies was ‘a live option’. Kim told media: “There are no disagreements over regulating speculation,” such as using real-name accounts and levying taxes on cryptocurrency trading. Shutting down digital currency exchanges is “a live option but government ministries need to very seriously review it,” he added.

As part of its rolling clampdown on cryptocurrency trading, Chinese authorities are also planning to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralised trading.Chinese regulators have already banned initial coin offerings (ICOs) and limited bitcoin mining.

According to Reuters yesterday, Chinese central bank has also urged authorities to ban the centralized trading of virtual currencies.

Former Wells Fargo Chairman and CEO Dick Kovacevich also told media yesterday that bitcoin is a scam: “I think it’s a pyramid scheme. It makes no sense. I’m just surprised it isn’t even lower

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