What started off as a hopeful week of broadening user adoption is ending on a sour note as Japan’s chief regulator launched a probe of crypto-exchanges, prompting the largest to halt account creation sending the entire crypto space lower...
As CNBC reports, the order from Japan’s Financial Services Agency, led bitFlyer – the largest crypto exchange in Japan — to suspend the creation of new accounts while it makes improvements to its business, especially as it pertains to its money-laundering measures.
“Our management and all employees are united in our understanding of how serious these issues are, as well as how serious we are in responding to them going forward,” bitFlyer said in a statement on their website.
“In order to maximize our efforts towards building a suitable service and improving on the issues identified, we have temporarily suspended account creation for new customers of our own volition,” bitFlyer said.
The agency gave the same order to five other other exchanges after finding weaknesses in their anti-money laundering controls.
Bitcoin immediately responded with selling pressure which then extended as Europe woke up and US markets came to life – sending it back below $6500…
But the pain is widespread.
“In the long run this is good for the ecosystem,” Brian Kelly, founder and CEO of BKCM said in an email to clients.
“In the short run it reduces the flow of new capital…which is bad.”
via RSS https://ift.tt/2K6WkZb Tyler Durden