Today I will try to collect in one article all the possible reasons for the sudden decline in cryptocurrency prices we have experienced recently.
1 BitConnect ends its BitConnect business (BCC) is currently trading at USD 16.79, which means a drop by
93%. It is worth adding that the coin is probably worthless since the credit platform was closed.
The Stock Exchange was operating on the principle of a financial pyramid. The first signal that should draw people's attention
investing in cryptocurrencies was the total anonymity of the BCC developers.
2 In China, work is underway to tighten the regulation of cryptocurrencies.
Bloomberg reports that the Chinese authorities will introduce more regulations on related projects
with cryptocurrencies. Chinese investors will no longer have access to foreign exchanges. All activities
companies that deal with cryptocurrencies are likely to be banned. At the time of publication, all
virtual currencies have lost between 10% and 38% of value within a few hours of providing information.
3 The largest banks in India have frozen the funds of cryptoclips.
The state bank of India, Axis Bank, HDFC Bank and Yes Bank. The reason for this decision were suspicious payments. There has been it is after the tax authorities have sent crypto currency investors warnings that they must
they pay tax on income derived from cryptocurrencies. The stock exchanges concerned are: Zebpay, Unocoin, CoinSecure and BtcxIndia.
4 Hacking of exchanges: YOUBIT, ETHERDELTA.
EtherDelta announced on her Twitter account that she was the victim of a hacker attack. Hackers created
a copy of the domain that was not distinguishable and users unknowingly sent their cryptocurrencies to
cybercriminals, instead of going to the stock market, thus losing their money.
Youbit, filed for bankruptcy after she was hacked for the second time this year.
Security on cryptocurrency exchanges is the subject of intense debate among investors.
5 The European Union introduces strict rules for the identification of cryptocurrencies on the stock exchanges.
The new rules are part of the activities to combat money laundering and terrorist financing, as well as tax evasion. If these regulations come into force, they will put an end to anonymous transactions on cryptocurrencies.