Bitcoin and major cryptos continue their downward spiral

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Cryptocurrencies have come under heavy pressure for regulation from global governments to central banks, with several countries imposing measures to regulate digital tokens. Photo: Jakub Porzycki / NurPhoto via Getty Images

The most valuable cryptocurrencies by market cap continued their decline on Tuesday.

Bitcoin (BTC-USD) fell 3.6% to $ 33,164 (23,906), falling to $ 32,804 on Tuesday morning. The larger token failed to break up or correct down, being stuck above the $ 36,000 mark, but managed to float to $ 32,000.

The drop comes after bitcoin peaked at $ 41,330 on June 15, breaking through a key resistance area of ​​$ 41,250, however, it has declined and on a volatile path since.

Other cryptos followed suit, ethereum (ETH-USD) fell 6.5% to $ 2,015, while Tesla boss (TSLA) ‘s favorite joke token (TSLA), Dogecoin, Dogecoin (DOGE-USD) ) fell 6.3% to $ 0.20 during the session.

Chart: Yahoo Finance

It comes after the Metropolitan Police’s Economic Crime Command seized nearly 180 million ($ 250 million) in bitcoin on Tuesday following an international money laundering investigation. The Met also confiscated 114 million cryptocurrency last month.

“As cash remains king in the criminal world, as digital platforms expand, organized criminals increasingly use cryptocurrency to launder their dirty money,” said Graham McNulty, Assistant Deputy Commissioner of the Met. “While a few years ago it was fairly uncharted territory, now we have highly trained officers and specialized units working hard in this space to stay one step ahead of those who use it at large. illicit purposes. “

Cryptocurrencies have come under heavy pressure for regulation from global governments to central banks, with several countries imposing measures to regulate digital tokens.

China has been the strictest in its demarches. Chinese Vice Premier Liu Hu vowed in May that the nation “will severely crack down on illegal securities activities and severely punish illegal financial activities.” The country in June extended the crackdown on the bitcoin mining industry to its largest bitcoin-producing provinces, including the southwestern province of Sichuan.

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Bank of England (BoE) Governor Andrew Bailey has previously said digital currencies will not get a regulatory ‘free pass’ in the future, despite their potential for innovation.

Meanwhile, the UK’s Financial Conduct Authority has previously warned that if consumers invest in crypto assets, “they should be prepared to lose all of their money.”

The regulator estimated that 2.3 million adults in Britain now own crypto assets, up from 1.9 million last year, with a growing number seeing them as a supplement or alternative to traditional investments.

UK bank TSB has banned more than 5 million customers from buying crypto over fears of “excessively high” fraud rates on trading platforms. TSB’s move follows similar steps taken by other UK banks in cracking down on financial cybercrime. Earlier in May, Barclays (BARC.L) Monzo and Starling Bank temporarily banned cash transfers to crypto platforms such as Binance.

The UK Advertising Standards Office has announced that it will begin a major effort this month to remove deceptive or irresponsible crypto ads, especially online.

Read more: From Binance to Coinbase: The Rise of Cryptocurrency Exchanges

Cryptos have recently been boosted by institutional support. Several organizations, including MicroStrategy (MSTR) and Tesla, have invested billions of dollars in cryptocurrencies and traditional financial firms like PayPal (PYPL) and Goldman Sachs (GS) have started to manage assets on behalf of clients. .

Despite regulatory fears, there has been more adoption of cryptocurrencies, especially bitcoin. A member of the Argentine congress introduced a bill that would allow staff to collect their salaries in bitcoin, to “strengthen their autonomy and retain the purchasing power of their remuneration.”

Last month, the President of El Salvador, Nayib Bukele, announced that he would accept bitcoin as legal tender. The move makes the Central American nation the first in the world to officially adopt digital currency.

Watch: What are the risks of investing in cryptocurrency?

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