Bitcoin drops as regulators issue negative warnings on crypto

FILE PHOTO - Representations of virtual currency bitcoin are seen in this picture illustration taken taken March 13, 2020. REUTERS-Dado Ruvic-Illustration

Earlier today, the flagship cryptocurrency managed to reach above the $52,000 level but then reversed and went down to $51,000, losing 2.44% and around $1,000 in a single hour.

Prior to this, the media published warnings of U.K. and U.S. regulators who were negative toward crypto-assets and crypto-related businesses.

The chairman of the U.K.’s FCA, Charles Randell, announced that in order to prevent possible harm to investors from the promotion of volatile crypto assets, the regulator will not grant a license to companies that are unable to explain the basics of their work, e.g., who is responsible for the key functions of the business.

Also, the media has reported that the U.S. SEC issued a warning against cryptocurrency scams that are targeted at retail investors. These scams are becoming more popular and push retail investors into “devastating losses.” However, this scam alert was published on Sept. 1.

At press time, Bitcoin has recovered to $51,400 on the Kraken exchange.

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