The US Securities and Exchange Commission, the SEC, announced that online platforms trading digital assets need to register with the agency. The announcement sent major cryptocurrencies lower in New York. Bitcoin fell below the $10,000 level.
There are growing concerns about increased regulation in the US, Japan, South Korea, India and China as the G-20 meeting approaches, where expectations are high for discussions on a coordinated framework for the future of these new crypto and blockchain industries. From the start of 2018, there has been confusion as some policy makers have been openly uneasy with one even reversing its stance on trading cryptocurrencies.
What is implied, is not fact.
The regulatory agencies are concerned because digital assets are trading on `exchanges` which implies that there is oversight by the government. The key point here is that a misimpression the gives investors a false sense of security as trading explodes on said exchanges around the globe. This announcement by the SEC stoked fears that tightening regulations could weight heavy on future trading.
Recent announcements in Japan and the US are timely as a maturing cryptocurrency market will necessitate coordination to ensure investor trust is not eroded – especially given the series of shocks that include a $530 million loss at one exchange in Japan.
Note that we will be putting together a series of articles and audio-visual pieces that discuss the ever-changing market here in Japan as there have been more comments and releases the week of March 5th.
Classarius is the only data driven news for blockchain, cryptocurrencies and technology from investment professionals.
Dislaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.