BAFL 51.82 Decreased By ▼ -0.69 (-1.31%)
BIPL 22.37 Decreased By ▼ -0.43 (-1.89%)
BOP 5.63 Decreased By ▼ -0.05 (-0.88%)
CNERGY 4.96 Decreased By ▼ -0.13 (-2.55%)
DFML 18.84 Decreased By ▼ -0.51 (-2.64%)
DGKC 79.66 Decreased By ▼ -1.14 (-1.41%)
FABL 32.51 Decreased By ▼ -0.59 (-1.78%)
FCCL 19.84 Decreased By ▼ -0.39 (-1.93%)
FFL 10.61 Increased By ▲ 0.04 (0.38%)
GGL 13.53 Decreased By ▼ -0.09 (-0.66%)
HBL 124.52 Decreased By ▼ -5.65 (-4.34%)
HUBC 119.55 Decreased By ▼ -3.07 (-2.5%)
HUMNL 7.92 Decreased By ▼ -0.13 (-1.61%)
KEL 4.49 Increased By ▲ 0.04 (0.9%)
LOTCHEM 27.82 Decreased By ▼ -0.10 (-0.36%)
MLCF 41.76 Decreased By ▼ -0.94 (-2.2%)
OGDC 125.24 Decreased By ▼ -0.37 (-0.29%)
PAEL 22.04 Increased By ▲ 0.69 (3.23%)
PIBTL 6.25 Increased By ▲ 0.13 (2.12%)
PIOC 116.05 Decreased By ▼ -1.95 (-1.65%)
PPL 113.96 Increased By ▲ 0.11 (0.1%)
PRL 30.11 Decreased By ▼ -1.69 (-5.31%)
SILK 1.25 Increased By ▲ 0.15 (13.64%)
SNGP 70.12 Increased By ▲ 0.72 (1.04%)
SSGC 13.56 Decreased By ▼ -0.16 (-1.17%)
TELE 9.51 Increased By ▲ 0.27 (2.92%)
TPLP 15.13 Increased By ▲ 0.38 (2.58%)
TRG 97.42 Increased By ▲ 4.57 (4.92%)
UNITY 28.26 Increased By ▲ 0.76 (2.76%)
WTL 1.71 Increased By ▲ 0.05 (3.01%)
BR100 6,781 Decreased By -34.3 (-0.5%)
BR30 23,966 Decreased By -279.4 (-1.15%)
KSE100 66,012 Decreased By -211.3 (-0.32%)
KSE30 22,048 Decreased By -75.1 (-0.34%)

HONG KONG: Cryptocurrencies resumed their slide on Monday, giving up the gains they had eked out over the weekend, as regulators continued to circle.

European officials reiterated warnings of risks posed by cryptocurrencies.

Bitcoin fell 5% to around $29,700 on Monday in Asian trade, sliding alongside stocks because of worries about high inflation and rising interest rates.

The world's largest cryptocurrency has lost around one fifth of its value so far this month, as the spectacular collapse of TerraUSD, a so-called stablecoin, has roiled crypto markets already falling amid broad selling of risky investments.

Bonfire of bitcoin: Why crypto assets are tumbling

TerraUSD, which broke its 1:1 peg to the dollar last week and is currently trading near 14 cents, according to price site coingecko, has drawn particular attention to stablecoins and the important role they play in the crypto system.

Some of that attention has come from financial regulators. Bank of France Governor Francois Villeroy de Galhau told a conference on Monday that crypto assets could disrupt the international financial system if they were not regulated and made interoperable in a consistent and appropriate manner across jurisdictions.

He pointed to stablecoins, which he said were somewhat misnamed, as among the sources of risk.

Speaking separately, Fabio Panetta, member of the executive board of the European Central Bank, also said on Monday that stablecoins were vulnerable to runs.

Tether, the world's largest stablecoin, briefly lost its 1:1 peg on May 12, before recovering. Unlike TerraUSD, Tether is backed by reserves in traditional assets, according to its operating company.

On the same day, bitcoin dropped as far as $25,400, its lowest level since December 2020, but recovered to as high as $31,400 on Sunday. Ether, the second-largest cryptocurrency, fell 5.6% to around $2,000 on Monday.

Regulators elsewhere are also concerned.

The US Federal Reserve warned last week that stablecoins were vulnerable to investor runs because they were backed by assets that could lose value or become illiquid in times of market stress.

Comments

Comments are closed.

Bitcoin back below $30,000; European regulators renew crypto warnings

SBP seen as holding key policy rate as monetary policy committee meets Tuesday

Inter-bank: rupee settles lower against US dollar

Banks in the red as KSE-100 loses some steam

Market cap: Pakistan’s energy giant Mari Petroleum joins billion-dollar club

Fighting intensifies across Gaza, raising alarm over potential exodus into Egypt

Open-market: rupee unchanged against US dollar

Roshan Digital Accounts: inflow clocks in at $137mn in November

Mari Petroleum successfully drills development well in Sindh

IIOJK special status: Pakistan rejects Indian SC verdict on Article 370

India’s top court upholds end of special status for IIOJK