Bitcoin prices plunged below $10,000, marking the first time since November that the best-known cryptocurrency in the world sank so low. Its price hovered around $800 at the start of the year and then saw a meteoric rise to nearly $20,000 in December.
In the United Kingdom, an inquiry into cryptocurrencies could be launched by MPs because of concerns over investor losses.
"So unsurprisingly, with so many South Koreans keen to fulfil their financial hopes and dreams through cryptocurrency trades, there is resistance to plans for a crypto-clampdown", the news agency added.
Speaking about other cryptocurrencies like Ethereum, Bitcoin Cash, Cardano, Ripple, and Litecoin, they have also seen deep losses of between 30 percent to 40 percent, according to data from CoinMarketCap.
In the past few weeks, bitcoin has been steadily declining due to fear of regulation by governments.
On Tuesday, news that South Korea is weighing a ban on trading on crypto exchanges, and reports that Chinese authorities were considering a ban on its local investors using foreign bitcoin exchanges, acted as a chilling effect. With a 24-hour volume of $9.8 billion, Ripple is now the second most-traded cryptocurrency on the market.
The petition comes amid fears that the South Korean Ministry of Justice will bring forward a bill to ban cryptocurrency trading through exchanges.
Before asserting that Bitcoin has crashed, however, it is important to take note of the cryptocurrency market as a whole and Bitcoin's relative performance. Russian president Vladamir Putin was also vocal about potential regulation of cryptocurrency, saying, "In broad terms, legislative regulation will be definitely required in the future".
Its strong point for his supporters is that it cannot be subjected to the temptation of the "printing press", but it's critics emphasize its opacity and extreme volatility, denouncing the creation of a speculative bubble.
It seemed like Bitcoin was all that everyone could talk about previous year. "But while the rally phase is over, I don't think it is right to say bitcoin is finished".
The current drop as seen Bitcoin lose half of its value within one month.
MORE: What is Bitcoin, how do you buy it - and is it a safe investment? Always research a cryptocurrency before investing in it.
Charles Hayter, chief executive of CryptoCompare, said many anticipated the cryptocurrency market to decline.