Bitcoin bonanza: the rise of regulation
The latest cryptocurrency price crash is shining the spotlight on the regulation of these borderless, digital currencies, but the rules differ wildly from country to country; global super-regulator IOSCO is set to make an announcement.
The world of cryptocurrencies is on fire, with the price of bitcoin slumping from $14,755 a piece to $9,928 in the space of a week, having shot up to almost $20,000 in mid-December.
Ethereum, the world’s second largest cryptocurrency, fell from a high of $1,415 at the weekend to under a thousand dollars on Tuesday; its next biggest competitor – finance industry-backed Ripple – fell from a high of $3.40 on January 7 to just under a dollar.
|The volatile price of bitcoin
These wild price swings come amid moves from regulators to clarify their stance on cryptocurrencies.
Most recently, South Korea announced it intends to abolish cryptocurrency exchanges, while China is rumoured to roll out a total ban on bitcoin mining. Given South Korea is home to some of the largest cryptocurrency exchanges and most bitcoin mining comes out of China, this is significant.