LONDON, July 15 (Reuters): Bitcoin slumped more than 10 per cent over the weekend to a two-week low as fears of a crackdown of cryptocurrencies grew on mounting scrutiny of Facebook's planned Libra digital coin.
Bitcoin fell 11.1 per cent from Friday to $9,855 early on Monday, its lowest since July 2. The original cryptocurrency slumped 10.4 per cent on Sunday alone, its second-biggest daily drop this year. It was last up 1.3 per cent at $10,319.
Politicians and financial regulators across the world have called for close scrutiny of Facebook's Libra coin, with concerns ranging from consumer protection and privacy to its potential systemic risks given the social media giant's global reach.
In a sign of widening US attention, a proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies has been circulated for discussion by Democratic lawmakers, according to a copy of the draft legislation seen by Reuters.
US President Donald Trump had last week criticized bitcoin, Libra and other cryptocurrencies, demanding that firms seek a banking charter and subject themselves to US and global regulations if they wanted to "become a bank".
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