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Bitcoin Slumps as Backlash Against Libra Begins

© Reuters.
© Reuters.

Investing.com – slumped on Friday in Asia following reports that the U.S. House of Representatives Committee on Financial Services requested that Facebook (NASDAQ:) stop developing its cryptocurrency, Libra.

In a letter sent on Tuesday, the committee said the project could lead ”to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar.”

“This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy,” the lawmakers said.

Bitcoin prices slumped 6.3% to $11,160.8 by 11:39 PM ET (03:39 GMT).

The House Committee on Financial Services is not the only body sounding the alarm about Facebook’s plans. A group of thirty-three advocacy groups have also penned a letter calling for a moratorium on Libra development.

Prices of other major cryptocurrencies also fell. was down 3.8% to $285.94. was down 4.4% at $0.38436.

slipped 0.1% to 119.596.

In other news, Britain’s Financial Conduct Authority (FCA) said crypto-related derivatives including options, futures and CFDs are too risky for small-sized investors.

The Authority is now considering a ban on such products, The Guardian report.

“Most consumers cannot reliably value derivatives based on unregulated crypto-assets. Prices are extremely volatile and as we have seen globally, financial crime in crypto-asset markets can lead to sudden and unexpected losses,” said Christopher Woolard, executive director of strategy and competition at the FCA.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: investing.com
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