After having faced stringent government regulations in Japan, the Bitcoin price has hit a low of $8,495.10 and was trading 3 percent lower near $8,600 as of 11:42 a.m. ET.
Bitcoin price has been struggling for some quite some time now. The Bitcoin price has struggled to recover the $9,000 level after tumbling from a short-term high of $11,660 earlier this month. Now, the bitcoin price remains about 17 percent above its low of $7,335.57 hit over the weekend.
Binance, founded by Zhao Changpeng, had received several warnings because it employs a large part of their staff in Japan and had been expanding without official permission from the Financial Services Agency (FSA), according to an unnamed source.
The cryptocurrencies have been decided to come after scrutiny after governments of various countries have been increasingly alarmed about the threat these cryptocurrencies may pose to their economy. Japan, one of the most active markets for digital assets globally, introduced a licensing system for virtual currency exchanges last year in an effort to improve oversight.
However, Binance mentions that in January that it was working to acquire a licence in Japan. In fact a tweet from Mr. Zhao on Thursday regarding the same issue read,“We are in constructive dialogue with Japan FSA, and have not received any mandates,”
The FSA has been actively stamping out cryptocurrency venues ever since a $500 million theft from Japanese exchange Coincheck Inc. took place in January. Moreover, last month, the regulator issued an administrative penalty against Macau-based Blockchain Laboratory Ltd. for giving seminars and providing consultation services in Japan without a license. Earlier this month, it suspended several local venues for poor security measures.
On Monday, Japan’s Financial Services Agency said that on March 8 and 9, it held a “Blockchain Round-Table” with regulators and policymakers from countries such as Singapore and Canada. The agenda for the closed-door meeting included discussion of vulnerability issues of the public blockchain and coordination between regulators and academia.
According to Coinmarketcap.com., Binance has been consistently ranked as the world’s largest cryptocurrency exchange by volume since late last year. It held the top volume ranking for the past 24 hours, trading about $1.6 billion, the website shows.
With the ongoing regulations in Japan along with Binance’s position as mentioned by its CEO, the Bitcoin price is yet to face another set of circumstances in the cryptocurrency market.
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