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Rumors of Private Wallets’ Possible Regulation Negatively Affected the Crypto Market

26 November 2020 10:58, UTC
Denis Goncharenko

Bitcoin price has dropped nearly by $2,000, recording the strongest decline in three weeks as traders are resisting overbought conditions and rumors of tighter regulations.

The market sell-off accelerated after Coinbase CEO Brian Armstrong warned of a likely tightening of US cryptocurrency regulations. On his Twitter account, he said that the company "heard rumors" of plans by US Treasury Secretary Stephen Mnuchin to introduce new rules for "self-custody wallets."

Regulation restricts many of the privacy features. Armstrong noted that under such rules, users will need to verify the identities. This could potentially compromise their financial privacy.

At the time of writing, the flagship cryptocurrency is hitting an intraday low of $17,150, more than 12 percent below its annual peak of $19,500 set the day before.

Image: Coindesk