City & Business News
BITCOIN prices suffered an overnight blow, plunging by more than $1,000 on Wednesday evening to strike out below the $10,000 mark. But why are bitcoin prices falling today?
Bitcoin took a hit last night after the US Securities and Exchange Commission (SEC) announced it will require digital asset exchanges to register with the federal agency.
Prices plunged by more than $1,000 in the space of an hour, falling from $10,673.03 at 4.40pm GMT to $9,481.45 by 5.22pm GMT on Wednesday, according to CoinDesk.
So far on Thursday the token has attempted to claw back its losses, kickstarting trading at $9,906.80 and peaking at $10,030.63 after 1am.
As of 8.33am bitcoin is exchanging hands for $9,865.37 – down 0.42 percent.
The SEC announcement last night sparked fears of tighter cryptocurrency regulation, forcing traders to pull back.
According to the agency, digital assets moving through exchanges need to abide by federal laws, to protect investors’ best interests.
The SEC said in a statement: “If a platform offers trading of digital assets that are securities and operates as an 'exchange,' as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not.
