More Regulatory Scrutiny Weighs on Bitcoin

Increased regulatory scrutiny of bitcoin exchanges sent the price of the volatile digital currency plunging in recent days.

“The cryptocurrency has fallen about 18 percent to $9,245 since Tuesday morning, when it traded north of $11,000. The cryptocurrency suddenly dropped further in midday trading reaching a low of $9,086, according to CoinDesk,” reports CNBC.

Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition. Market observers previously expected Nasdaq to launch futures on the digital currency this year, perhaps as early as the second quarter. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.

“Bitcoin dropped below $10,000 Wednesday following news of compromised accounts on a major Hong Kong-based exchange and a statement from the U.S. Securities and Exchange Commission that expanded its scrutiny to cryptocurrency exchanges,” according to CNBC.

In a statement out Wednesday, the SEC warned against some of the digital platforms offering Initial Coin Offerings (“ICOs”).