[Bitcoin Now] Realizing US Regulations... Falling to 44 Million Won Range

Square Records Bitcoin Investment Losses Exceeding 50 Billion Won in Q2 Alone

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The representative cryptocurrency Bitcoin has fallen to the 44 million KRW range. It is interpreted that the drop was due to news that a specific bill related to cryptocurrency regulation was introduced in the U.S. Congress.

According to the domestic cryptocurrency exchange Upbit, as of 2:04 PM on the 3rd, Bitcoin recorded 44.71 million KRW, down 1.63% compared to the previous day. Bitcoin showed a sharp upward trend at the end of last month but has been falling for four consecutive days since July 31.

Bitcoin appears to be declining due to specific regulations being prepared in the U.S. According to cryptocurrency specialized media CoinDesk on the 2nd (local time), Democratic Representative Don Beyer introduced the "Digital Asset Market Structure and Investor Protection Act." The bill stipulates that the U.S. Securities and Exchange Commission (SEC) regulates security-type cryptocurrencies or tokens, while the U.S. Commodity Futures Trading Commission (CFTC) regulates the remaining cryptocurrencies not handled by the SEC. Security-type cryptocurrencies or tokens refer to cryptocurrencies issued based on company assets like stocks.

Regulations related to stablecoins linked to the value of fiat currencies such as the dollar were also prepared. This bill grants the U.S. Treasury Department the authority to ban or authorize stablecoins. Attorney Mark Goldich explained, "It effectively defines not only the issuance but also the use of stablecoins as illegal." Instead, the bill explicitly grants the Federal Reserve the authority to issue a digital dollar.

[Image source=AP Yonhap News]

Meanwhile, Square, an overseas mobile payment company led by Twitter CEO Jack Dorsey, reportedly suffered losses exceeding 50 billion KRW from Bitcoin investments in the second quarter alone. According to U.S. economic media CNBC on the 2nd, Square's Bitcoin investment loss in the second quarter was $45 million (approximately 51.7545 billion KRW). Square purchased Bitcoin worth $50 million and $170 million in October last year and February this year, respectively.

Square's cryptocurrency-related revenue in the second quarter recorded $2.72 billion. This is below the forecast of $3.4 billion compiled by U.S. economic media Bloomberg. Square explained, "It appears that cryptocurrency trading was not conducted as Bitcoin prices stabilized compared to the previous quarter." Earlier, on March 30, Square launched a payment service that allows cryptocurrencies to be used at merchants.

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