Bitcoin, the world’s most popular cryptocurrency, has fallen to its lowest level in more than a month, well below the $12,000 mark, as China’s targeting of mobile applications and platforms used to trade online began. Yesterday, Bitcoin’s price reached a low of $11.817, which threatens to set back the cryptocurrency world, facing the warnings of many central banks around the world.
Recently, the South Korean government has been speaking about the country’s obsession with cryptocurrencies, arguing that the South Korean market accounts for about 12% of the global digital currency markets.
The losses recorded by Bitcoin caused many other digital currencies to fall, most of them dropping between 16% to 29%. Ethereum, the second largest cryptocurrency, has also fallen by more than 20%.
These drops pushed the currency to severe losses, falling to its lowest level since December 5, when it traded at $12.120. The Chinese government has been planning to ban access to domestic trading platforms that offer cryptocurrency trading. Officials in China also target people who provide trading services and other infrastructure for cryptocurrency markets, which allow for various small transactions between individuals.
China’s cryptocurrencies campaign began last year, when the state blocked digital currency issuance in the country.. The government also recently considered banning cryptocurrency mining.
Joachim Formling, a member of the board of the Bundesbank, claims that the regulation of cryptocurrencies is only a matter of time. “It is the duty of the state to defend the individual and public interests, so the cryptocurrencies will sooner or later be subject to legal regulation either for the protection of the consumers or for tax reasons.”
It should be noted that the European Union has already taken the first step towards the regulation of cryptocurrencies, in December. According to a new money laundering regulation, future depositors cannot remain anonymous if they want to exchange digital currencies for real money. Government regulation of cryptocurrencies is fairly obvious in China and South Korea, which are the bastions of the digital currency.
German officials pointed out to “the need of global cooperation as much as possible” to determine the validity of the circulation of digital currency outside the borders of a particular state and away from the legislation in force in this country.
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