Bitcoin fell more than 10% overnight on fears that the South Korean government crackdown on cryptocurrency trading, which could lead to shut down of the exchanges.

The new moves by Seoul are seen as a way to curb growing speculation and fraud after one exchange went bankrupt last week after suffering a second hack.

Youbit, a Seoul-based crypto exchange, suspended trading and filed for bankruptcy after it was hacked a second time this year with the latest hack resulting in loss of its digital currency reserves.

South Korean investigators are probing whether North Korea may have been involved in the exchange hack.

New proposed regulation looks to end the use of anonymous cryptocurrency accounts and ban banks from settling trades on unidentified digital-currency accounts on bitcoin exchanges, according to a government statement on Thursday.

Thursday morning EST bitcoin was trading at $13,835 down 10% for the day.