During the last weeks the global market of cryptoactives has experienced downward movement, due to the different announcements of regulation in the main countries around the world. Today, almost all the cryptoactives on the market have percentages of decrease of more than two figures.
After the great increase presented by the global market capitalization during the last month of 2017, as well as the increase in the value of the main cryptocurrency, which exceeded 20 thousand dollars per bitcoin on December 17, different announcements of regulation, added to the recent Hack to Coincheck, have negatively affected the price of the main cryptoactives.
This is what the cryptocurrency market looks like today.
Source: coinmarketcap
More and more governments of the world announce that they will regulate the functioning of the exchange houses and that they will impose more restrictions on the functioning of these, as well as more requirements of Know Your Customer (KYC), to avoid potential illegal or fraudulent transactions.
These ads, moreover, are mainly made by countries that handle higher volumes of transactions with cryptocurrencies in the world, such as Japan, South Korea or the United States.
HOUSES OF CHANGE IN THE LOOK
A few days ago, the main financial authorities of the United States, the Securities and Exchange Commission (SEC) and the Commission of Trade Futures Exchange (CFTC) published a joint statement warning that they will reinforce their regulations on cryptocurrencies.
In addition to discussing their concerns regarding the Initial Currency Offers (ICO) market, the representatives of these institutions reported that:
Many of the cryptocurrency exchange platforms that operate through the internet have been registered as payment services and are not subject to surveillance by the SEC or the CFTC. We would support any law that supports the revision of these regulatory frameworks and ensure that they are effective and efficient in the digital age.
Jay Clayton and Christopher Giancarlo
Directors, SEC and CFTC
This intention to regulate exchange houses finds a similar counterpart in Japan, where the Minister of Finance and other authorities have expressed their plans to regulate the exchange of cryptoactives in the country, especially after the hack suffered by the Coincheck exchange house, in which were stolen 530 million dollars in XEM, currency of the NEM platform.
The South Korean counterpart also expressed that it will not prohibit the exchange of cryptocurrencies, but that they will strongly regulate its operation. These statements follow the implementation of a law that prohibits the clients of the exchange houses from operating with anonymous bank accounts, in addition to the comment of the president of the Financial Services Commission that they would be studying to close these entities. In response to this, the Minister informed that this was only one of the possibilities studied.
Although the outlook seems negative for the crypto market, TF Global Markets' market analysis director Naeem Aslam told the Bloomberg news agency that these regulations are positive in the long term.
In his opinion, investors feel more comfortable knowing that there is a regulatory framework around this market, so these actions increase confidence in blockchain technology.
In addition, the cryptoactive market tends to suffer these widespread losses and then, as developers make improvements in the networks and that adoption grows, its value reaches levels higher than those presented before falling.