US and Japan impose new regulations, Bitcoin suffers a slump
Bitcoin suffered a big dip yesterday, now worth $9,760 after losing 7.19 % of its value compared to this time on Wednesday morning. It has dropped about 10 percent this week.
The slump is thought to be a response to the US Securities and Exchange Commission (SEC) warning that all cryptocurrency exchanges must to be registered if they are to be permitted to continue operating.
Another reason for the Bitcoin’s slump could be the crackdown from the Japanese Financial Services Agency which ordered FSHO and Bit Station to stop operations for at least a month, and others like GMO Coin, Zaif, Bicrements, and Mr. Exchange will be facing penalties. The FSA also ordered Coincheck to revise its management structure, improve anti-money laundering procedures, and report to the agency by March 22.
The announcement by the Japanese authority came hours after the US Securities and Exchange Commission warning.
For the first time in history, the SEC stated platforms similar to exchanges must register with the agency as a national securities exchanges. The SEC believes such platforms may confuse investors into trusting them. Platforms prefer not to register with the agency to avoid compliance burden that comes with regulations including regular inspections.
Cryptocurrency platforms that don’t take action on the SEC’s warning and register with the agency could be sued and shut down.
We believe, Coinbase, one of the largest cryptocurrency trading platforms, will obey the new regulation, as it has previously stated that it complies with all applicable laws.
These developments are part of the efforts by many governments around the world to tighten oversight of the industry and curb cyber theft, cryptocurrency scams, money laundering, trading outages and other frauds.
Even though these regulations affect the Bitcoin prices adversely, many experts believe in the long-term, more government involvement will make nascent markets safer for the investors who mushroomed during the last year’s boom.