US President Donald Trump last week criticized Bitcoin, Libra and other cryptocurrencies.
Bitcoin rolled to a two-week low of more than 10 percent over the weekend, as fears of a cryptocurrency crackdown soared over growing scrutiny of Facebook's planned Libra digital coins.
Bitcoin fell 11.1 percent from Friday to $ 9,855 (about Rs 6.75 lakh) in early Monday, the lowest since July 2. The original cryptocurrency fell by 10.4 percent on Sunday alone, its second-largest daily decline of this year. It was up 0.5 percent to $ 10,245 last time.
Politicians and financial regulators around the world have called for an investigation into Facebook's Libra coin, covering concerns ranging from consumer protection and privacy to its potential systemic risks, giving the social media giant a global reach.
US President Donald Trump last week criticized Bitcoin, Libraand other cryptocurrencies, demanding that firms seek a banking charter and subject themselves to the US. And global rules if they "want to be a bank".
After a call by US Federal Reserve Chairman Jerome Powell to address concerns ranging from privacy to money laundering, bitcoin, which initially closed Trump's tweet, fell sharply.
Together they have increased the tail risk that the portfolio manager of crypto firm NKB Group in London, Jamie Farquhar, said that the US would somehow try to tighten it.
Government sources told Reuters that underlining the increased focus on Facebook's plans, Japanese officials have also formed a working group to look into Tula's potential impact on monetary policy and financial regulation.
Benoit Coeur, the policy regulator of the European Central Bank, is due to give a preliminary report on the matter at a meeting of the G7 finance ministers this week in Chantilly, north of Paris.
Bitcoin climbed nearly 55% in nine days, when Facebook revealed its plans for the Libra sign on June 18, touching an 18-month high of $ 14,000. The project has raised hopes among some investors that cryptocurrency may gain widespread acceptance.