U.S. And Japanese Regulators Deepen Clampdown On Cryptocurrencies
Crypto markets are reacting negatively to increasing regulatory pressure from key players. The price of bitcoin reversed some gains that it had generated early in the week; BTC price plunged below $8,500 level today after Japan has issued a warning to Binance – which is the largest cryptocurrency exchange based on trading volume of over $1.6 billion.
Reports suggest that Japan’s Financial Services Agency has shown concerns over the Binance strategy of expanding its operations in Japan without a license in the country. Japan has previously suspended operations of several crypto exchanges on security concerns.
While the warning to the largest exchange doesn’t signify any immediate threat to digital currencies, the warning adds to the sentiments that global regulators wouldn’t allow crypto markets to work freely, amid concerns that crypto markets are supporting everything from tax evasion, terrorist funding to money laundering.
Binance CEO refuted all the claims after the market reacted negatively to report. He said, We are in constructive dialogs with Japan FSA and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.”
U.S. regulators are working on different strategies to tackle the illegalities in the evolving cryptocurrency markets. Brett Redfearn, the heads of SEC’s trading and markets division, believes cryptocurrency trading marketplace could be strengthened by enforcing stock market principles, including best execution and surveillance.
Fraud, theft, market manipulation, cybersecurity, money laundering and terrorist financing are the biggest concerns in view of Brett Redfearn.
“There are no registered exchanges, there are no registered ATSs (Alternative Trading Venues) trading any of these products,” said Redfearn, a former JPMorgan Chase executive. “That is a very big concern for us,” he said.
The entire cryptocurrency market started reversing gains that they had generated early in the week after U.K, Japan, and the U.S. increased cryptocurrency scrutiny. Bitcoin price plunged 4% today, while altcoins are posting high mid-single digit to double-digit decline over the last two days. Stellar (XLM), Cardano (ADA) and NEO (NEO) are among the prominent laggards.
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