Bitcoin price (BTC/USD) tumbles as regulators move to rein in crypto trading

Some US exchanges will be required to register with the SEC

Bitcoin price (BTC/USD) tumbles as regulators move to rein in crypto trading

The Bitcoin price (BTC/USD) has seen significant losses in the past 24 hours, as regulators in two of the largest cryptocurrency markets in the world have stepped up their efforts to rein in digital currency trading.

Yesterday, the original currency dropped below $10,000 for the first time in nine days, as reports that Japan’s financial watchdog was preparing punitive measures against some local cryptocurrency exchanges rocked the digital currency market. Investors were further spooked by a statement from the US Securities and Exchange Commission, saying that trading platforms, which offer digital assets that are securities must register with the regulator.

"If a platform offers trading of digital assets that are securities and operates as an 'exchange,' as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration," the SEC said in the statement. The regulator is also concerned that “many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not”.  

“Many platforms refer to themselves as "exchanges," which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange."

The Bitcoin price fell to a nine-day low of $9,692.12 yesterday, but it managed to recover some of the losses in late Wednesday trading. The digital coin finished the session at $9,965.57, down from its opening level of $10,803.90. Bitcoin’s gradual advance has continued in today’s trading, allowing the coin to climb back over $10,000.

As of 10:03 GMT, the Bitcoin price stood at $10,125.20, down 4.2% from the same time yesterday. The cryptocurrency’s market capitalisation currently stands at $171.1 billion, which represents 41.6% of the total value of all digital currencies.

For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.

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