Bitcoin drops more than 10% as scrutiny of cryptocurrencies grows

Bitcoin slumped more than 10% over the weekend to a two-week low as fears of a crackdown of cryptocurrencies grew on mounting scrutiny of Facebook’s planned Libra digital coin.

Bitcoin fell 11.1% from Friday to $9,855 early on Monday, its lowest since July 2. The original cryptocurrency slumped 10.4% on Sunday alone, its second-biggest daily drop this year. It was last up 0.5% at $10,245.

Politicians and financial regulators across the world have called for scrutiny of Facebook’s Libra coin, with concerns ranging from consumer protection and privacy to its potential systemic risks given the social media giant’s global reach.

U.S. President Donald Trump criticised bitcoin, Libra and other cryptocurrencies last week, demanding that firms seek a banking charter and subject themselves to U.S. and global regulations if they wanted to “become a bank”.

Underscoring the growing attention on Facebook’s plans, Japanese authorities have also set up a working group to look at Libra’s possible impact on monetary policy and financial regulation, government sources told Reuters.

Via Reuters/CNBC