Bitcoin Down 1.7%·Ethereum Down 3.5%... US IRS Requests Support for Cryptocurrency Regulation

FBI Successfully Recovers Bitcoin, Raising Hacking Concerns
US IRS Requests Congress for "Cryptocurrency Regulation Support"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Prices of various cryptocurrencies, including Bitcoin, have declined. The FBI's successful recovery of Bitcoin has fueled concerns about cryptocurrency hacking, and the IRS's request for regulatory support has raised fears of regulatory pressure, which analysts say has driven the decline in cryptocurrencies.

According to CoinDesk as of 6:45 AM KST on the 9th, Bitcoin was priced at $33,600, down 1.68% compared to 24 hours earlier. Previously, Bitcoin maintained the $33,000 range the evening before but then began to plunge, dropping nearly 6% to $31,277.

It then started to rebound again, maintaining a slightly lower level than the previous day at around $33,600.

Bitcoin began to decline after reaching $58,000 last month, plunging 43% in one month. It also recorded its lowest price since early February ($33,600).

Ethereum is trading at $2,519, down 3.50% compared to 24 hours ago.

Dogecoin is at $0.3326, down 3.42%.

Among other major altcoins (cryptocurrencies other than Bitcoin), Ripple (XRP) rose 0.30% to $0.87, Litecoin fell 2.48% to $161, and Monero dropped 2.95% to $250.

The stock price of Coinbase, the largest cryptocurrency exchange in the U.S., closed at $220.66 on the Nasdaq, down 4.66% from the previous trading day.

The background to the continued decline in the cryptocurrency market is the recent success of U.S. authorities in recovering Bitcoin paid as ransom, which has spread concerns that Bitcoin can also be hacked.

Earlier, the FBI announced on the 7th (local time) that it had successfully recovered most of the cryptocurrency paid as ransom to the hacking group in the Colonial Pipeline hacking incident that occurred last month.

Cryptocurrency specialized media Decrypt reported that the FBI likely cracked the 'private key'?the cryptographic code that allows access to Bitcoin?to track the cryptocurrency paid to the hacker group.

The FBI's announcement that it secured the 'private key' to access Bitcoin and succeeded in seizure has fueled concerns about hacking of cryptocurrencies.

Additionally, the IRS requested regulatory support from Congress on the same day, raising regulatory concerns among investors.

IRS Commissioner Charles Rettig said at Congress, "Institutional support is needed to collect information on all cryptocurrency transactions exceeding $10,000."

This is interpreted as a concern that cryptocurrency transactions over $10,000 are mostly not reported to the IRS and could be misused as a means of crime or tax evasion.

Charles Rettig, Commissioner of the U.S. Internal Revenue Service (IRS)
[Photo by Reuters]

Commissioner Rettig also emphasized the need for stronger regulation, stating, "Cryptocurrency is essentially encrypted transactions, which have a high possibility of escaping the surveillance network of judicial authorities."

This content was produced with the assistance of AI translation services.