Bitcoin fell more than 11pc on Thursday after South Korea announced a clampdown on cryptocurrency.

The new rules will target anonymous trading of virtual currencies and crack down on money laundering activities, Seoul said.

South Korea is a hub for digital currency trading, reportedly accounting for 20pc of global Bitcoin transactions.

Regulation will including a ban on opening anonymous accounts and new legislation to allow regulators to close virtual currency exchanges.

"Officials share the view that virtual currency trading is overheating irrationally ... and we can no longer overlook this abnormal speculative situation," Hong Nam-ki, thw South Korean minister for government policy co-ordination said. Anonymous accounts currently in use will be closed next month, it added, without explaining how it planned to do this.