Bitcoin is Close to Year Low After Japan Crackdown

Bitcoin on the drop again

0 3,350

Bitcoin has now dropped the most in this week after regulators from Japan hit six of the country’s crypto trading venues. The institutions were hit with improvement orders by the regulators. This latest crackdown caught investors by surprise, therefore, ending what was a positive trend in the week for the crypto markets. The orders affected all the coins seeing MVIS CryptoCompare Digital Assets 10 Index drop by more than 7.1 percent today.

The targeted exchanges reacted to the crackdown very quickly. An example is Bitflyer Inc. stated that it would be stopping accepting new clients and more to that it would review identity verification for most of the existing users after the order which came from Japan’s Financial Services Agency. The agency asked for an improved measure against money laundering by all exchanges. The affected institutions were instructed to submit their detailed plans before July 23.

Peer-to-peer money is now under pressure after the hack of two Korean exchanges. The latest concerns are covering the security of investors. According to information from Ryan Rabaglia who is a trader with crypto firm Octagon Strategy Ltd. From Hong Kong:

“The market is currently trading at a low volume and is yet go up from the downtrend which has made it prone to massive sell-offs. However, even though the market has been negative I see this regulatory issue as a positive thing for the industry in the long-run.”

Today Bitcoin which is world’s largest digital coin went down by 6.3 percent and is currently trading at 6,357 dollars. This is a continued downtrend since the start of the year which has seen the coin lose more than 56 percent of its value. Litecoin and Ethereum also reacted to the latest crackdown with both losing 7 percent.

Bitbank, Quoine, BTCBOX, BITPoint Japan and Tech bureau were among the penalized exchanges. Even though Japan has created a regulatory framework there have been many weaknesses with Coincheck having been hacked in January this year. Bitflyer was among the first exchanges to start its anti-money laundering rules after a newspaper reported that investors in the exchange could perform many functions without completing customer verification.

Bitflyer transactions amounted to close to 2 billion dollars per day during the late April times and also early may, thanks due to a huge section to Bitcoin margin contracts which have the japan based day traders.

According to a partner of Amber AI Group, Crypto hedge fund, Tiantian Zhang Kullander, he said;

“The market is quite soft, with liquidity lower across the board, especially compared to recent quarters. The FSA punishing operators, the BIS report and the Bithumb hack are all affecting sentiment.”

You might also like