Bitcoin Dips Below $14,000 as South Korea Eyes Fresh Regulations

Bitcoin resumed its slide Thursday, dipping below $14,000 as the cryptocurrency’s dizzying drop from a record set 10 days ago intensified, according to Bloomberg.

The latest blow to the world’s biggest cryptocurrency came from South Korea, where the government said it was eyeing options for stamping out a  frenzy of speculation, including a potential shutdown of at least some exchanges. Bitcoin fell as much as 11 percent to as low as $13,500, erasing modest gains after the South Korean release. It’s now down 30 percent from the record $19,511 it reached on Dec. 18.

Bitcoin’s plunge comes after futures contracts started trading on CME Group’s exchange, giving investors new ways to bet on the digital coin’s price moves. The news from South Korea unnerved traders because the country has been ground zero for a global surge in interest in bitcoin as its rally this year reached 1,600 percent, prompting the nation’s prime minister to worry over the impact on Korean youth.

While there’s no indication Asia’s No. 4 economy will shutter exchanges that have accounted by some measures for more than a fifth of global trading, the news is a warning as regulators express concerns about private digital currencies. South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges, according to a statement from the Office for Government Policy Coordination.

Singapore’s monetary authority warned last week that digital currency buyers should be aware they could lose all their money, joining counterparts who’ve warned about speculative mania surrounding bitcoin, which has surged more than 1,300 percent this year even after the latest selloff.