Bitcoin was on a free fall Tuesday, reaching below $12,000 for the first time since December 5, amid reports that China is stepping up crackdown on cryptocurrency "Exchange-Like Services.". Smaller rivals ethereum and ripple were also losing their value as investors around the world are getting more and more concerned over the future of digital currencies after a last week report that South Korea, one of the major markets for cryptocurrency, is preparing a bill to ban all crypto trading, over "great concerns."
As of 4.13 am ET, bitcoin was trading at $11,951.61 a coin, but since gained back and was at $12,222.15 as of 7.00 am ET, down 10 percent. Ethereum, the second biggest digital currency, was down 12.1 percent at $1,134.67, while the third place holder ripple, which had once traded around $3.84, was trading at $1.44, down 14.3 percent.
Chinese authorities reportedly plans to block online platforms and mobile apps that offer exchange-like services as part of stepping up the crackdown on cryptocurrency exchanges.
The Chinese government now plans to block domestic access to homegrown and offshore platforms that enable centralized trading, Bloomberg reported, quoting people familiar with the matter.
The Central Bank of China in September had banned betting on bitcoin and other cryptocurrencies.
Last week, South Korea's justice minister Park Sang-ki had said the country was readying a bill to ban all crypto trading. South Korea has been emerging as a focus for the bitcoin world, influencing global demand for digital currencies.
Regulators around the world are closely watching cryptocurrencies amid concerns over excessive speculation, money laundering and tax evasion, which led to increased volatility in global markets for bitcoin and other digital tokens since November.
For comments and feedback: editorial@rttnews.com