Investing.com – The price of Ripple’s XRP fell sharply on Tuesday as traders fled cryptocurrencies after the threat of regulatory action grew on reports China, and South Korea were preparing to step up efforts to curb cryptocurrency activity.
South Korean news website Yonhap reported that Finance Minister Kim Dong-yeon had told a local radio station that the government is preparing a set of measures to curb cryptocurrency related activity, which may include banning cryptocurrency exchanges. It was reported, however, that plans for increased regulatory measures are yet to finalized.
That added to regulatory fears as China was also said to be considering a ban of centralised trading of virtual currencies.
Ripple (XRP) fell 30% to $1.26 after reaching an all-time high of $3.28 last Thursday, as the threat of regulatory action overshadowed recent positive developments including a partnership announcement with Moneygram last week.
Ethereum, the second largest cryptocurrency by market cap, fell 18.44% to $1,058.90 well below its recent all-time high of $1,423.2 set on Jan.13.
An exodus of South Korea crypto-investors is widely viewed as a major headwind for the Ethereum as more 10% of the cryptocurrency is said to be traded against the South Korean won.
Bitcoin continued its recent decline falling 17.29% to $11,440. The digital currency has fallen nearly 50% from its December peak of $19,891.
Bitcoin skeptics have been quick to comment on bitcoin’s demise as former Wells Fargo Chairman and CEO Dick Kovacevich said the popular digital currency was a “pyramid scheme,” adding that he was “surprised it isn't even lower."