Cryptocurrency loses a quarter of its value
A In the face of increasing regulation by authorities worldwide, cryptocurrencies are coming under increasing pressure. The value of a unit of the most well-known digital currency Bitcoin fell on Friday on leading trading platforms such as Bitstamp under $ 9,000. A minus of ten percent to $ 8366 was recorded. This week alone, the Bitcoin has lost a good quarter of its value. Other cryptocurrencies, such as ripple or litecoin, also fell sharply.
A harsh crackdown by authorities in Japan and the United States on crypto exchanges is causing a downward spiral. Japanese financial supervisors announced two trading venues on Thursday to cease operations for one month. Further exchanges filled them with penalties. In addition, they called on the big crypto-exchange Coincheck to tighten their action against money laundering. Furthermore, the trading platform Binance had to temporarily stop trading because of a hacker attack.
In addition, the US Securities and Exchange Commission SEC puts crypto exchanges on the short leash. To protect investors and avoid fraud and tampering, crypto exchanges would in future have to obtain SEC filings or exemptions under certain circumstances, it said Wednesday. Above all, "Initial Coin Offerings" should fall under it. In these "digital IPOs," companies are collecting money from investors who usually pay in cryptocurrency.
On Friday, China's central bank chief Zhou Xiaochuan warned against dangers of speculation in cryptocurrency. But check to what extent you could use the technology behind it.