Bitcoin slides 3% as Hong Kong seeks to end 'honeymoon' with crypto exchanges

The price of Bitcoin has declined by more than 3% in the past two days.

The pullback of the dominant cryptocurrency comes amid growing regulatory pressure in China and Hong Kong.Timeline of exchange FUD in the past month.

On Oct. 16, top Bitcoin futures exchange OKEx suspended withdrawals after one of the exchange's private key holders was reportedly arrested.

Merely 17 days later, speculation that Huobi, a Singapore-based exchange with an office in Hong Kong, might face regulatory pressure emerged after data showed massive Bitcoin and Tether withdrawals on Nov. 2.

Today, Reuters reported that Hong Kong regulators will propose that all cryptocurrency exchanges must be regulated and apply for a Securities and Futures Commission license as opposed to the previous opt-in approach, which many exchanges declined to do.

It comes a year after the Hong Kong government released rules for cryptocurrency exchanges.

Ashley Alder, chief executive of the SFC said on Nov. 3:."This is a significant limitation, as under the current legislative framework if a platform operator is really determined to operate completely off the regulatory radar it can do so simply by ensuring that its traded crypto assets are not within the legal definition of a security."We can declare Bitcoin's honeymoon phase to be over".

Despite the subtle wording of the SFC's statement, industry experts said it is essentially a declaration to end Bitcoin's honeymoon phase.

"With rumors of more crypto exchange officials arrested in China and Hong Kong's move to make trading illegal, we can declare Bitcoin's honeymoon phase to be over.

The response of Bitcoin to the regulatory crackdown rumors has been minor.