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US Senate panel could crackdown on Bitcoin

The price of Bitcoin plummeted as South Korea announced plans to draft a law aimed at banning cryptocurrencies and police raided cryptocurrency exchanges in Seoul, a result of allegations of tax evasion.

In more bad news for Bitcoin investors, Warren Buffett denounced cryptocurrencies telling CNBC that he believes “with almost certainty they will come to a bad ending”.

And things could get worse for cryptocurrencies.

It seems the US Senate’s financial services panel, due to hold a meeting next month with market regulators, will discuss “concerns over the risks cryptocurrencies pose to the financial system”, according to Reuters.

It is understood that the rise of cryptocurrencies has prompted heightened concerns among central bankers over whether it is a “legitimate and sustainable financial instrument”.

Both the Commodity Futures Trading Commission and the SEC have voiced concerns about cryptocurrencies and the associated risks.

They are not alone.

JP Morgan Chase CEO Jamie Dimon made headlines after he called Bitcoin a “fraud” but has since softened his position on the cryptocurrency.

Warren Buffett has become the latest high-profile investor to voice concerns about cryptocurrencies.

“If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth,” Mr Buffett told CNBC.

“We don’t own any, we’re not short any, we’ll never have a position in them.

“I get into enough trouble with things I think I know something about.

“Why in the world should I take a long or short position in something I don’t know anything about.”

Bitcoin surged past US$19,000 in December but has since suffered a sharp decline.

At the time of writing Bitcoin was trading at US$13,686.70, according to Coin Market Cap.

Another site, Coin Desk, has the Bitcoin price at US$13,354.86 at the time of writing.

Anyway, it’s highly likely those prices will be almost irrelevant by the time you’ve read this.

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