Bitcoin Approaches Year Low as Japan Cracks Down on Venues

Bitcoin Approaches Year Low as Japan Cracks Down on Venues

Bitcoin extended losses as it approached the lowest price for the year after Japanese regulators hit six of the country’s biggest cryptocurrency trading venues with business-improvement orders.

The biggest virtual currency fell as much as 10 percent to $6,045.31, testing the low for the year of $5,922 that was set on Feb. 6, according to prices compiled by Bloomberg. The MVIS CryptoCompare Digital Assets 10 Index tumbled as much as 11 percent.
Some of the targets of Japan’s regulator were quick to react. Bitflyer Inc. said it would stop accepting new customers and also review identity verification for some existing users after it received an order from Japan’s Financial Services Agency. The FSA called for improved measures at all the exchanges against money laundering. The companies must submit their plans by July 23.

Peer-to-peer money has come under fresh pressure in recent weeks after two South Korean exchanges said they were hacked. That raised fresh concerns about the security of investor holdings. New pressure in Japan, one of the most crypto-friendly jurisdictions, demonstrated the market’s fragility to regulatory moves in the absence of much positive news.

“The market is still trading on low volumes and has yet to break out of its current downtrend, leaving itself susceptible to sell-offs,” said Ryan Rabaglia, head trader with cryptocurrency dealing firm Octagon Strategy Ltd. in Hong Kong, in an email. “Although the market reacted negatively, I view this as a positive for the industry as a whole.”

Bitcoin, the largest cryptocurrency, is down about 57 percent this year. Ethereum and Litecoin both retreated by more than 14 percent.

Source: Bloomberg News

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