Investing.com – Bitcoin and other major digital coin prices tumbled on Friday in Asia, reporting double-digit 24-hour losses in a sudden market meltdown. The crypto market cap dropped to US$122 billion, losing around US$17 billion, or 13%.
Bitcoin plummeted 12% to $3,576.4 by 10:40 PM ET (03:40 GMT), losing its grip on the US$4,000 level that it had kept during the first week of this year.
While there is no clear catalyst for today’s sell-off, some cited more calls for tighter regulations worldwide as possible headwind for crypto prices.
14 out of 21 South Korean crypto exchanges failed government security checks, according to local media reports.
South Korea’s Ministry of Economy and Finance said these crypto exchanges are “vulnerable to hacking attacks at all times because of poor security” due to “insufficient establishment and management of security system such as basic PC and network security.”
This further supports the financial watchdog’s call for a bill to regulate domestic crypto exchanges, the reports said.
In July, the Financial Services Commission said the bill was needed to address loose security, which resulted in hacks causing losses of more than US$70 million from exchanges such as Coinrail and Bithumb.
Meanwhile, in China, blockchain platforms must now censor content and give authorities access to data and user identity, according to the Cyberspace Administration of China. The new rules will take effect next month.
To trace user identity, real-name registration via a national ID or telephone number is required. Failure to comply with the rule will result in fines or prosecution.
The country is known for being crypto-unfriendly. Since 2017, it has been banning digital coins, initial coin offerings and domestic operation of local crypto exchanges.