Bitcoin falls on fears as regulatory vexes the biggest Bitcoin exchange.
Mar 25, 2018 Posted / 2406 Views
Bitcoins value can be more volatile when compared to other more established currencies and commodities. This can be attributed to its relatively small market size, and that means a small amount of money can move the Bitcoins value more significantly. This discrepancy will decrease naturally over time as the market size increases and the currency matures. The prices of cryptocurrencies May rise or fall by 22-25% in a day but the prices in the traditional market don't fluctuate more than 1%.
Binance is an international, multi-language cryptocurrency exchange founded by the Changpeng Zhao in 2017.
Founded originally in China, eventually was compelled by the circumstances to move it's servers and headquarters from China to Japan. Since the Chinese government banned Crypto trading in September 2017. According to coinmarketcap.com, with a daily trading volume of almost $2 billion. Its short life has been characterized by rapid and dramatic growth. It made over $7 million in profit only three months after launching and once said that it had taken on 240,000 new customers in the space of one hour, forcing it to temporarily close its registration page. The exchange has over six million customers and handles over 100 different coins. As of January 2018, it is the largest cryptocurrency exchange with BNB (Binance Coin) market capitalization of $1.3 billion.
Having been moved from China, Binance is likely to face challenges in Japan too, as the Financial Services Agency warns Binance, given its lack of registration with the financial regulatory as the reason.
However, the statement does not entrail whether the regulator is weighing criminal charges, as indicated in the previous report of Nikkei. The exchange stated earlier this year that it was working with Japanese regulators to secure a license.
Since then the prices of various cryptocurrency have been plunging down too.
Bitcoin was trading at $8,411.4 by 12:20 AM ET (04:20 GMT) on the Bitfinex exchange, down 7.3% over the previous 24 hours.
Ethereum, the world’s second largest cryptocurrency by market cap, dived 10.6% to trade at $514.82 on the Bitfinex exchange.
Ripple’s XRP token plunged 9.5% to $0.62610 on the Poloniex exchange.
Meanwhile, Litecoin was trading 6.2% lower at $159.75.
The founder, Changpeng Zhao also tweeted, saying,
“No need to worry. Some negative news often turns out to be positive in the long term. Chinese have a proverb for this. New (often better) opportunities always emerge during times of change.
7:35 AM - Mar 23, 2018”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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