Bitcoin is suffering fresh losses today after South Korea’s government announced a clampdown on digital currencies.
The digital currency tumbled by 11% to below $14,000, meaning it has shed a quarter of its value since hitting its latest record high on 17th December.
The selloff came as South Korea revealed it is taking several steps to combat speculation in cryptocurrencies.
The measures include a ban on opening anonymous cryptocurrency accounts, and new legislation to allow regulators to close virtual coin exchanges if needed.
Bitcoin has taken South Korea by storm – reportedly, 20% of all bitcoin transactions take place in the country.
The government fears that the boom has gone too far. In a statement, it says:
South Korea is also keen to clamp down on criminals who use bitcoin to launder money, or fraudulently manipulate the price.
This sent the bitcoin price reeling:
South Korea warns of shutting and reviewing of exchanges, #Bitcoin drops over $2800 pic.twitter.com/30fXXqkHh9
December 28, 2017
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
2017 has been a good year for shares, with most stock markets posting double-digit gains. And last night, the bull market swept Britain’s FTSE 100 to a new closing high of 7,620 points.
Can it do it again today? Possibly — the futures markets are suggesting that the Footsie could creep a little higher today as more traders return to the City after the Christmas break.
European opening calls suggest a sedentary session though mining stocks may help FTSE – FTSE +8, DAX -23, CAC -10 (futures) courtesy of IG at 7.15am
It will probably be a quiet trading session, though, as the markets stagger towards 2018.
Hussein Sayed, Chief Market Strategist at FXTM, says:
Investors will also be watching for the European Central Bank’s latest assessment of the eurozone economy, new UK home loan figures, and fresh trade and unemployment data from America.
Here’s the agenda:
9am GMT: European Central Bank publishes its economic bulletin
9:30am GMT: UK mortgage loans for November
1.30pm GMT: US trade balance for November
1.30pm GMT: US weekly jobless figures