Investing.com - Bitcoin continued to fall on Thursday, as the Bank of England warned banks against cryptocurrency assets.
Digital coins have fallen in recent weeks amid increased concern over security and regulatory concerns. Bitcoin was trading at $6,101.40 falling 0.54% the Bitfinex exchange, as of 7:29 AM ET (11:29 GMT),
The virtual coin has fallen more than 70% from its December high of just below $20,000, falling to a four-month low of $5,787 on Sunday.
Meanwhile the BOE told banks and insurers to be wary of crypto assets due to their volatility, central bank officials said on Thursday.
"Crypto-assets also raise concerns related to misconduct and market integrity – many appear vulnerable to fraud and manipulation, as well as money-laundering and terrorist financing risks,” said Sam Woods, BOE deputy governor responsible for financial supervision. Companies are expected to inform regulators of crypto-asset exposure as well as an assessment of the risks associated, Woods added in a letter to banks.
"Firms should conduct extensive due diligence before taking on any crypto-exposure and maintain appropriate safeguards against all the related risks," Woods said.
In other regulation news, Hong Kong’s Securities and Futures Commission (SFC) said it would closely watch the virtual currency market.
“New technologies provide convenience for investors but come with risks. We keep a close watch on cryptocurrencies and initial coin offerings, intervening where appropriate. We also launched the SFC regulatory sandbox for qualified firms to conduct regulated activities utilizing financial technologies,” the regulator wrote.
Cryptocurrencies overall remained steady, with the coin market cap of total market capitalization at $246 billion at the time of writing compared to $245 billion on Wednesday.
Ethereum fell 2.56% to $433.40 on the Bitfinex exchange. Ripple, the third largest virtual currency, dipped 1.64% to $0.45944 while Litecoin was at $77.975, down 2.01%.