Cryptocurrency enthusiasts will have noticed the Bitcoin price has taken another stumble. This latest downtrend comes at a rather surprising time. Worrisome news originating from Japan and the Binance rumors are not helping matters much. As is usually the case, this market will bounce back eventually.Japanese Exchange Concerns
Perhaps the biggest Bitcoin price ‘scare’ originates from Japan. More specifically, the local Financial Services Authority has continued to scrutinize cryptocurrency companies. The results are relatively worrisome, although there is no reason to be overly concerned from a long-term perspective. FSHO and Bitstation are temporarily shut down by the FSA. Neither of these exchanges are “major trading platforms”, but the decision sets a rather worrisome precedent.
A total of four exchanges have been penalized, including Zaif. That exchange allowed users to buy Bitcoin for $0 due to a system glitch. GMO, Bicrements, and Mr. Exchange are also penalized. BitExpress and one unidentified exchange have their license withdrawn due to “irregularities”. Coincheck, which lost over $450m in customer funds, can’t reimburse users until further audits are completed. It is unclear how long this process will take exactly.
None of these developments are negative for cryptocurrency as a whole. Companies not adhering to guidelines need to be punished in one way or another. Japan is not banning cryptocurrency but rather creating an optimal ecosystem for all parties involved. In the long run, these developments will create a more robust ecosystem, which is a positive development. All of these companies will come out stronger because of the “intervention” by the FSA in this regard.Binance and the Bitcoin Price
As one would expect, all of this news has crippled the Bitcoin price a bit. With the value dropping quite quickly, the Bitcoin price even dropped below $10,000 at one point. This trend is compounded further by rumors regarding Binance being hacked. So far, the company stated all customer funds are safe. They did experience some “irregular trading” but it seems those problems have been rectified already.