Cryptocurrency prices and market capitalization was hurt on Monday after news that South Korean regulators were probing six retail banks that were providing virtual accounts to virtual currency exchanges. The consequent move by leading cryptomarket data provider CoinMarketCap to remove some Korean exchanges from its price calculations, without warning, exacerbated the slide.
During January 8, the total market capitalization fell to as much as $668 billion from $774 billion, according to CoinMarketCap data. And some respite for crypto fans; JP Morgan Chase CEO Jamie Dimon admitted on Tuesday that he regrets calling the digital currency a “fraud.”
Here is a wrap-up of the main news in the last 24 hours:
1. South Korea Crackdown
South Korea’s Financial Intelligence Unit and Financial Services Commission launched a probe into six commercial banks that were offering trading accounts to crytpocurrency exchanges in the country. Officials will check whether these banks comply with their anti-money laundering obligations in their transactions with cryptocurrency exchanges, the Financial Services Commission said in a statement on Monday. They will also inspect whether these banks have implemented appropriate measures to verify their customers’ identification in regard with cryptocurrency trading, so as to comply with the “real-name” mandate to be implemented from January 20.
2. CoinMarketCap Exclusion
Following the news of Korean crackdown, a leading cryptocurrency market data provider, CoinMarketCap, removed some Korean exchanges from its price calculations, without any warning, causing a sharp slide in prices of digital coins it tracks. “This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity,” CoinMarketCap said in its official twitter account.
3.JP Morgan’s Dimon Regrets Calling Bitcoin “A Fraud”
JP Morgan Chase Chairman and CEO Jamie Dimon on Tuesday backtracked on his earlier comment that Bitcoin is a fraud. During a banking conference in Saudi Arabia in September, Dimon caused a stir when he called Bitcoin a “fraud” and said he will fire any JP Morgan trader if they dealt with the most prominent cryptocurrency. In an interview with FOX Business’ Maria Bartiromo, aired on Tuesday, Dimon said, “I regret making them. The blockchain is real.” He said the initial coin offerings, or ICO’s, must be viewed “individually”.