Bitcoin failed to hold on Monday April 9 above the psychological mark of $ 7,000. The cryptocurrency rose on April 8, but again fell to $ 6,700, leading other cryptocurrencies to sink also. The explanation may be the strengthening of regulations on the cryptocurrency market in South Korea and other countries.
On Monday, the news that the Financial Services Commission (FSC) of South Korea will check three banks that provide services for crypto-exchanges – NongHyup, KB Kookmin and KEB Hana was reported. It was announced that checks would take place from 19 to 25 April. The regulator wants to make sure that financial institutions comply with the new rules regarding the anonymity of bank accounts and instructions on preventing money laundering.
Moreover, it was reported that South Korea works on the framework of taxation of cryptocurrencies, which will come out in June of this year.
The People’s Bank of China (PBOC) intends to strengthen control over Bitcoin and other cryptocurrencies, while continuing to consider the possibility of launching its own digital currency.
Switzerland, one of the most democratic countries in terms of its attitude to Bitcoin and cryptocurrencies in general, also launched a campaign to identify fraud schemes through the ICO. The regulator’s concerns were raised due to the the possibility of money laundering through the ICO.
Canadian authorities are planning to collect information about crypto-exchanges. As spokeswoman for the Securities Commission of Ontario (OSC) Kristen Rose recently mentioned, OSC received a large number of complaints about the exchanges of digital assets. The latest OSC check revealed that none of cryptocurrency exchanges were officially registered.
Regulations are coming into force. The cryptocurrency market is starting to progress and attract institutional investors. The previous launch of Bitcoin in particular contributes to that. Big players are already starting to invest in cryptocurrency, however it is only the beginning and major funds may not be invested at this stage. Were that to happen growth in the market would be possible.
The barrier for big investors is the still not finalised regulation of crypto-currencies and projects based on them, in most countries. As well as the negative attitude of the central banks of some countries towards cryptocurrencies. Furthermore, the legal complexity of investing in ICOs can be added to the list.
The name of John Rockefeller appeared perhaps for the first time in news about cryptocurrency. His grandson founded the company Venrock in the late sixties. Recently in the media there were rumors that the company will deal with investments in cryptocurrency.
The leaders immediately stated that they do not plan to play on volatility and they are interested in long-term investments. George Soros also drew attention to the prospects of BTC and altcoins. For a long time he was negative about cryptocurrency and blockchain projects as such, considering them a “bubble”, but he recently changed his mind and see it as an interesting investment for his fund.
According to the data from Capital.com, it can be seen that traders were bothered by the recent news, starting from the beginning of April. And as a result, this brought a lesser amount of traded positions, however now, together with the stabilisation of the market, the amount of positions has stabilised and it’s clear that the prevailing majority of positions are long positions.
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Written by Oleg Vaisman.
Prepared and edited by Andrew Carroll, Journalism MA in DIT.