2018.03.0802:18:00UTC+00Bitcoin Tanks after SEC Requires Registration of Crypto Exchanges

Bitcoin slid below the psychologically significant level of $10, 000 after the Securities and Exchange Commission said it will require digital asset exchanges to register with the regulator. The statement particularly referred to cryptocurrency assets that are perceived as securities.

The biggest cryptocurrency by market value fell by almost 10 percent on Coinbase in an abrupt move after SEC statement triggered concerns that tightening regulation could limit future trading. Bitcoin declined to almost $9,500 but had rebounded slightly to $9,969.

The statement from the regulatory agency comes following weeks of subpoenas from SEC in its initiative to have better control over may trading platforms and exchanges.

There is persisting speculation if securities laws will apply to digital coins, resulting in companies depending mostly on self-disclosure and attorneys to attempt to define themselves from common frauds.

Bitcoin has fallen almost 50 percent from record highs near $20, 000 hit in December, sharply declining since then as concerns of government regulation weigh down sentiment in the cryptocurrency market.