The sale hit the performance of cryptocurrency on Tuesday, with bitcoin prices slump by 25%, along with the widespread discourse of firm action taken by some regulators.
Despite a 25% decline to US $ 10,338 at 16.37 pm New York time, bitcoin prices remained at the lowest level since early December 2017, according to composite prices in Bloomberg.
When bitcoin stops its rally, other top digital currencies also fall, with ripples slumping by 40% and ethereum down 26%.
Reported by Bloomberg, speculators around the world are currently trying to find out when or how the regulators can control a decentralized industry and derive most of its value from such anonymous ownership.
In South Korea, Finance Minister Kim Dong-yeon stated that the closure of the cryptocurrency exchange exchanges is still an option. However, he insisted that the action must first be through a serious discussion among the ministries.
"The finance minister affirmed that they must consider banning cryptocurrency trade, and [South Korea] is probably the third largest market," said Neil Wilson, a London-based senior market analyst for online trading platform ETX Capital.
"The news hit prices and broader sentiment, following China's move to close the mine [mining for cryptocurrency]," he added.
China, which first began targeting the industry last year, is reportedly increasing its pressure on cryptocurrency trading, particularly online platforms and mobile apps offering services such as exchange exchanges.
"We have heard the news that South Korea, China and Japan have considered steps to make the rules," Wilson said, citing other challenges coming from the U.S. Senate. "It seems that the touch that allowed the cryptocurrency boom to explode may be coming to an end."
According to Greenspan, senior market analyst for the eToro currency platform, smaller trading activity than usual in South Korea and Japan may have impacted the movement of cryptocurrency in Asia on Tuesday.
Bitcoin's trade in the Korean won stood at about 3.3% compared with more than 10% achieved on several days over the past two weeks, according to cryptocompare.com data.
"Investors should be prepared to lose all their money on bitcoin," according to Steven Maijoor, chairman of the European Securities and Markets Authority (ESMA), in an interview on Bloomberg TV in Hong Kong.
"[Bitcoin] has a very fluctuating value, which undermines its use as a currency. This digital currency is also not widely accepted, "he added.
The ESMA, the Paris-based financial institutions of the European Union, said it had warned retail investors against initial coin offerings (ICO) in November and kept track of the development of cryptocurrency.