It’s been a four-week low for cryptocurrencies as regulatory crackdown looms. Even Bitcoin, the leader of this roost got scathed as its price titter-tottered around the 10k territory from its glorious all-time high of 19k.
Right before 17th December when the cryptocurrency juggernaut was recording a colorful performance, even unknown coins like Cardano, Tron, and Stellar trudged forward to take a spot in the top ten positions by market cap. Unfortunately when Bitcoin came tumbling down, so did all the rest-both major and minor crypto coins.
Countries and entities looking to ban cryptocurrencies
South Korea has plainly made clear of its plan to regulate cryptocurrencies for some time now. Being a major player in the market, their sentiments led to many investors relinquishing much of their assets to avoid losses. Mass selling has been witnessed across all the coins resulting in a rapid slump in prices.
Yonhap, a South Korean news website reported that Kim Dong-Yeon, a finance minister disclosed to a local radio station that the government was working on a set of measures to regulate what they call “irrational” crypto investment craze.
China is making the same move in Bitcoin
A senior banker in China is also advising their government to shut down decentralized virtual currencies from being traded in their spaces. He further advised that companies offering these services should be clamped down as well.
This isn’t the first time China is issuing an embargo against decentralized currencies. September last year, they banned ICOs from operating in their jurisdiction which led to cryptocurrency prices taking a U-turn. Earlier in the same year, they also restricted Bitcoin users from withdrawing their money via banks for several days.
Away from China and South Korea, there are also some noises coming from New York over the legitimacy of cryptocurrencies and why they shouldn’t be treated like stocks or bonds. A bench of judges in Brooklyn is yet to organize a hearing to discuss what Bitcoin is and whether it should be regulated or not.
The judges in New York are not the only ones struggling to understand this asset class and how to regulate it. Back in Japan, the government watchdog is inspecting all exchanges within its jurisdiction after Coincheck got hacked and worth £380 million in NEM stolen. This is to ensure such an incident doesn’t happen again.
Nevertheless, the cryptocurrency evangelists and lovers have several theories to explain what’s happening at the moment. For instance, Outlier Ventures’ CEO Jamie Burke, who also happens to be a holder of several crypto coins insists that this market is not yet due the correction phase. According to Burke, this phase is non-discriminatory, and every coin will feel the heat for a few more days before things spring back to normal.