Crypto Carnage Continues – Ripple Now Down 40% Year-To-Date

Overnight reports from South Korea started it; European regulator comments extended it this morning; and Shanghai “scrutiny” headlines just sparked another slam as cryptocurrencies are getting hammered today…

We detailed the anxiety over a more widespread crackdown on crypto-trading overnight, and since the US came back from its MLK-Day vacation, things have got worse.

It started with a repeat of South Korean finance ministry shutdown headlines.

Then Steven Maijoor, chairman of the European Securities and Markets Authority, said investors “should be prepared to lose all their money” in bitcoin, in a Bloomberg TV interview in Hong Kong. “It has an extremely volatile value, which undermines its use as a currency,” he said. “It’s also not broadly accepted.”

That was followed by warnings from Germany’s Central Bank – Joachim Wuermeling, a member of the board of Germany’s Bundesbank, has suggested that any attempt to regulate cryptocurrencies would require international cooperation. Speaking at an event in Frankfurt on Jan. 15, the director told listeners: “Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”

Then China headlines hit: Shanghai Stock Exchange has taken actions including suspending shares, requiring company clarification and asking for risk disclosure against some stocks amid speculation of blockchain concept, Shanghai Securities News reports, citing the bourse.

Shanghai-listed Easysight Supply Chain Management said in filingsthat co. will halt trading pending checks related to blockchain concept and warned investors again that blockchain business wouldn’t have significant impact on current earnings.

The reaction is not pretty as Ripple leads the collapse…

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