Bitcoin (Bitcoin) fell more than 11 per cent after South Korea said on Thursday it would take additional measures to regulate speculation in cryptocurrency trading within the country, Economic Times reported.
"Officials share the view that virtual currency trading is overheating irrationally ... and we can no longer overlook this abnormal speculative situation," the government said in a statement.
The steps will include a ban on opening anonymous cryptocurrency accounts and new legislation to allow regulators to close virtual coin exchanges if needed, a measure recommended by the justice ministry, it added.
The government also seeks yo fight money laundering activities and financial fraud - including price manipulation - using digital currency trades.
"We will resolutely respond to such crimes by slapping maximum sentences possible on offenders," it said.
South Korea had previously announced its plan to tax capital gains from cryptocurrency trading to tackle what it sees as the risk of excessive speculation.