Why Cryptocurrency Prices are Tanking Right Now

The correction is likely a result of several factors. Last week, South Korea's Justice Minister Park Sang-ki said the country is preparing a ban on cryptocurrency trading. Even though other branches of government later said the ban is not finalized, the country's stance towards the cryptocurrency market does seem to be getting tougher.

The Chinese government plans to block domestic access to local and offshore platforms that provide centralized trading, according to Bloomberg, citing unidentified sources. Officials are also targeting people who provide trading services like market making (providing bids and offers) and other market infrastructure, while smaller transactions between individuals may be permitted.

Trouble may be brewing for cryptocurrencies in the U.S. as well. Fortune reported Sunday that the Metropolitan Bank has halted all cryptocurrency-related international wire transfers, likely as a response to an incident of international fraud related to one of the bank's clients. The Metropolitan Bank is a fast-growing bank — sometimes referred to as the "Bitcoin Bank" — whose client list includes some prominent cryptocurrency companies, one being the world's largest cryptocurrency exchange Coinbase.

China’s crackdown started last year. It began by banning initial coin offerings (ICOs), which meld aspects of crowd funding and virtual currencies. Then it targeted local exchanges, telling them to halt trading in digital assets. More recently, authorities have looked to discourage bitcoin mining.