That followed reports last week that increased worries about potential price manipulation at Bitfinex, one of the largest cryptocurrency exchanges in the world. The Commodity Futures Trading Commission on Dec. 6 subpoenaed Bitfinex and a digital coin company called Tether, run by many of the same people as the exchange, Bloomberg reported, citing a source. The New York Times said Wednesday that a person familiar with the matter also affirmed the report. The CFTC declined to comment to CNBC. A representative for Bitfinex and Tether had no further comment.
Bitcoin dropped more than 10 percent to $7,334.93 on Monday morning, according to CoinDesk’s bitcoin price index, which tracks prices from exchanges Bitstamp, Coinbase, itBit and Bitfinex. That marked bitcoin’s lowest since mid-November.
Bitcoin 12-month performance
On Tuesday, Facebook also banned ads for cryptocurrencies.
Meanwhile, worries about a regulatory crackdown are growing. The U.S. Securities and Exchange Commission has stepped up its efforts to halt cryptocurrency-related fraud, while authorities in South Korea have banned anonymous trading accounts in an effort to limit speculation. Japanese regulators are inspecting local cryptocurrency exchanges after Coincheck lost the equivalent of more than $500 million in digital currency to hackers in January.
The heads of the SEC and CFTC are set to testify before the Senate Banking Committee on Tuesday.
In India, the country’s minister of finance, Arun Jaitley, said in a speech Thursday that the government “does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system,” according to a transcript from the daily newspaper The Hindu.
“Short term regulatory scrutiny may be a set-back to crypto prices, but long term professional investors need better regulation and more clear guidance regarding the crypto space,” Gabor Gurbacs, director, digital assets strategy at VanEck, said. “The more regulators understand the markets, the higher the probability for regulated products, such as ETFs.” […]