Digital Coins Tumble in January Amid Facebook, Tether Concerns

For cryptocurrency investors, January is turning into a month to rue.

Digital coins have mostly slid the coming week, with Bitcoin heading for its worst monthly wane since February 2014, as U.S. regulators ramp up their scrutiny of one of the world’s largest digital currency exchanges while Facebook Inc. is banning ads tied to the industry.

Bitcoin is down about 29 percentage this month, trading at $10,172 as of 8: 35 in London, according to composite pricing compiled by Bloomberg. Rival coins Ripple and Litecoin have respectively slid about 45 percentage and 29 percentage, while Ethereum has managed a 47 percent increase. The four coins were little changed on Wednesday.

” The regulatory oversight and the clampdown is truly coming to the fore right now ,” Stephen Innes, head of trading for Asia Pacific at Oanda, said by phone from Singapore.” I don’t think we’ve seen the last of it .”

The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to cryptocurrency trading venue Bitfinex and Tether, a company that issues a widely traded coin it claims to be pegged to the dollar, according to person or persons very well known the matter who asked not to be identified discussing private datum. The firms share the same chief executive officer.

Facebook, meanwhile, will ban ads on its social network promoting digital currencies, initial coin provides and binary options, cautioning they’re” frequently associated with misinform or deceptive promotional practises .”

U.S. regulators have moved to crack down on the industry after the emergence of various types of companies or people raising fund through an ICO, or initial coin offering, with no apparent business behind it. The U.S. Securities and Exchange Commission said this week that it got a court order freezing the assets of a Texas-based initial coin offering that claimed to have raised more than $600 million. The ordering stops AriseBank from creating any additional cash from investors.

Cryptocurrencies have yet to sustain a rally after a record $500 million heist from Japanese exchange Coincheck Inc. on Jan. 26, further intensifying calls for increased oversight in world trading hotbeds such as South Korea.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s