Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Bitcoin Sell-Off Continues; FCA Investigates 24 Crypto Firms

Published 28/05/2018, 12:44
Updated 28/05/2018, 12:48
© Reuters.  Bitcoin was lower on Monday.

Investing.com - Cryptocurrencies were lower on Monday, as fears over a U.S. criminal investigation continued to rattle investors and amid reports that a UK watchdog is investigating crypto firms.

Bitcoin was trading at $7,215.5 falling 1.92% as of 7:43 AM ET (11:43 GMT) on the Bitfinex exchange, not far from an earlier low of $7,203.00. The digital currency was down over 14.69% over the week.

Bitcoin was at a six-and-a-half week low afters reports last week that the U.S. Justice Department is looking into whether traders are manipulating the price of Bitcoin and other virtual currencies.

Meanwhile, the Financial Conduct Authority, the UK’s main financial watchdog, is investigating 24 firms that deal with digital currencies and has also opened seven whistleblower reports in 2018.

The probe is to see if the unregulated business are participating in activities that would require authorization from the regulator, the FCA said in response to a freedom of information request from accountancy and consulting firm Moore Stephens. While the FCA does not regulate digital currencies, it does regulate virtual derivatives because it is considered a financial instrument.

As governments have increased regulation, digital currencies have fallen in value. The total market cap was down to a six-week low at $312 billion at the time of writing, compared to $342 billion on Friday.

Other digital coins were down with Ethereum, the world’s second largest cryptocurrency by market cap, falling 8.59%% to $530.22 on the Bitfinex exchange. Ripple, the third largest virtual currency, decreased 6.71%% to $0.56952 while Litecoin was at $112.50, down 5.01%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.