Regulations imposed by the South Korean government are having a devastating impact on Bitcoin
Bitcoin, etherium and ripple are all in the middle of a nosedive as cryptocurrencies across the market are crashing.
The digital currencies are experiencing a massive selloff as prices have fallen by as much as 10% this morning.
Bitcoin in particular has come down nearly 40% over the last month despite being valued at around $20,000 a few days ago.
However, it’s still the best performing cryptocurrency ahead of ripple and etherium. The former has dropped as much as 25% while the latter has plunged 15%.
Much of the drop may be precipitated by suggestions that South Korea is looking to impose new regulations on digital currency trading.
The South Korean government is following in the footsteps of China and Vietnam; two countries which have already imposed measures to try and control cryptocurrencies.
“The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility,” the South Korean government said in a statement, according to Reuters.
Unlike bitcoin, which are mined, ripple are controlled by the firm, which has initially created 100 billion ripple – 38 billion of which are in circulation.
And ripple can release one billion further coins each month.
While this means that transaction fees are lower, it does come with its risks.