The dramatic decrease in cryptocurrecy rates has created a huge pressure on cryptomaniacs and investors . Over $100 billion was wiped off of the global cryptocurrency market in 24 hours on Friday.
South Korea regulation:
South Korea is also cracking down on cryptocurrencies heavily as well. The main reason for this is that majority of the global investors in cryptocurrencies reside in South Korea. Even though, the population of the country might be small but the number of investors or the density of investors is actually pretty high. This is one of the main reasons why any change in the regulatory framework in South Korea would actually impact the entire cryptocurrencies space as well. South Korea has made it harder for people to trade in cryptocurrencies. The exchanges are required to collect the documents and verify the identity before allowing them to trade.
all the major cryptocurrencies including bitcoin , ethereum and ripple has seen their evertime lowest price from last year leaving huge investors moonstruck.
why are they crashing ?
well..the cryptocurrency market has recently been completely plagued by negative news making investors panic and withdraw their assets .
The main reasons why cryptocurrency are falling today are :
South Korea regulation:
South Korea is also cracking down on cryptocurrencies heavily as well. The main reason for this is that majority of the global investors in cryptocurrencies reside in South Korea. Even though, the population of the country might be small but the number of investors or the density of investors is actually pretty high. This is one of the main reasons why any change in the regulatory framework in South Korea would actually impact the entire cryptocurrencies space as well. South Korea has made it harder for people to trade in cryptocurrencies. The exchanges are required to collect the documents and verify the identity before allowing them to trade.
India’s finance minister statement :
Officials have said cryptocurrencies are used by criminals to launder money. India, which has likened the market to a Ponzi scheme, on Thursday vowed to eliminate their use.
The Indian finance minister said his government would take “all measures” to remove crypto-assets in “financing illegitimate activities or as part of the payment system”, Arun Jaitley told parliament.
Facebook ban on advertising:
Facebook recently announced that it would not allow the cryptocurrency advertisements especially for the ICOs. Many of the ICOs were heavily advertising on Facebook in order to gather the new investors and in order to gather the hype as well. Since Facebook is not allowing that any longer, many of the ICOs would not be able to market them heavily.
US crackdown:
The SEC is also examining the ICOs carefully now. It has even stopped to some of the ICOs which it thinks are suspicious as well. Owing to this very reason, when it comes to the ICO market, the regulation and the regulatory hurdles are increasing as well. Cryptocurrency is a decentralized form of money. Therefore, whenever there is any regulatory hurdle or whenever there is an attempt to control it, it would certainly fall as well.
M good
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