BTC/USD Stable After SEC Orders Temporary Freeze on Bitcoin Firm

Bitcoin prices hovered within a narrow range on Monday, as markets reacted to the SEC’s temporary freeze on trading for a publicly-listed cryptocurrency firm.

Bitcoin (BTC/USD) edged down 0.5% to trade at $4,370.92 at 7:59 a.m. ET, according to CoinDesk BPI. Prices traded within a $55 range through the overnight session. At present values, Bitcoin is capitalized at $72.3 billion.

Markets were calm in the wake of a decision by the U.S. Securities and Exchange Commission (SEC) to freeze trading for American Securities Corp, a company that recently declared it would launch a cryptocurrency exchange. In doing so, it plans to rebrand as the Crypto Currency Exchange Corporation.

Over the past month, the SEC has suspended trading on two other Bitcoin-related companies that are publicly listed on over-the-counter (OTC) markets.

Meanwhile, China’s ‘big three’ cryptocurrency exchange OKCoin has refuted claims that it is using idle client funds to make risky investments. Earlier, it was reported by state news agency Xinhua that OKCoin and Huobi used $150 million of users’ funds to invest in risky financial assets.

Chinese regulators are closely monitoring the cryptocurrency market. Earlier this year, the People’s Bank of China (PBOC) suspended withdrawals on the ‘big three’ exchanges amid concerns they were being used to facilitate capital flight.

South Korea is taking an entirely different approach to Bitcoin. Regulators in that country are moving closer to formally recognizing Bitcoin as a payment method. As a result, the South Korean won has been a major player in the global cryptocurrency market in recent months.

BTC/USD (CoinDesk BPI)

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Sam Bourgi is a financial market analyst for economiccalendar.com. He has more than six years of progressive experience in economic and financial analysis, research consulting and sectoral analysis. As a published author in government, peer-reviewed, online and industry sources, he has developed a fundamental approach to the financial markets with a broad focus on stock indices, commodities and the technology sector. He earned his Bachelor’s Degree from the University of Windsor and Master’s degree from McMaster University.