Price of Bitcoin is Falling as Coincheck of Japan Stops Withdrawals

On Friday morning, the price of bitcoin has fallen by over six percent amid news that a large Japanese exchange has stopped the withdrawals of clients.

Bitcoin has had a rough start to 2018. Following its rise in December which was close to $20,000, the cryptocurrency king has halved in value in January because of the murmurs regarding regulation from nations across the globe.

According to the aggregate index of Coindesk, at around 10 in the morning yesterday, the digital currency was down by 5.74 percent at $10,498.09.

Today, the steep drop of bitcoin came as Coincheck, a Japanese exchange, said via a Twitter post that it was stopping deposits, withdrawals, and buying and selling of the cryptocurrency NEM.

Coincheck said that it was “working to resolve this issue as quickly as possible.”

According to Coinmarketcap, NEM is the world’s 10th biggest digital currency in terms of market capitalisation. The price of the cryptocurrency dropped by almost 18 percent after the news. The other top 10 cryptocurrencies were trading between five and 13 percent lower.

During the World Economic Forum in Davos last Thursday, Theresa May, the British Prime Minister added to the chorus of the sceptics of bitcoin, asking for more regulation on the cryptocurrency. The Prime Minister said that the world should watch “very seriously” at the implications of the cryptocurrency and its potential for use by criminals.

Urging caution around bitcoin, Chancellor Philip Hammond added to the sentiment.

“Possibly we do need to look at the way we regulate this environment before the amount of outstanding bitcoin becomes large enough to be systemically important in the global economy.”