Cryptos tumble on news Japanese exchanges ordered to improve practices


Bitcoin sheds 5%, on track for third consecutive losing week

Cryptocurrency prices are under pressure Friday after the Japanese Financial Services Agency ordered six exchanges to improve business practices after a series of inspections over the past few months.

The exchanges hit with the notices are QUOINE, BTC Box, Bit Bank, Tech Bureau, Bit Point and bitFlyer—Japans largest digital currency exchange.

In the case of bitFlyer, a translated version of the FSA notice said: “an effective management system has not been established to ensure proper and reliable operation of the business, as well as countermeasures against money laundering and terrorist financing.”

The news is a

blow for the crypto community that had begun to see some light at the end of the tunnel after some favorable rhetoric from regulatory officials and some price stability ahead of $6,000, but today’s news puts the Feb. 6 low of $5947.40 back on the radar.

A single bitcoin BTCUSD, -8.80% last changed hands at $6,339.53, down 5.6% since Thursday 5 p.m. on the Kraken crypto exchange.

The total value of all cryptocurrencies has fallen $20 billion in the last 24 hours to $268 billion, according to data from CoinMarketCap.

It was a matter of time

The timing of the news comes just hours after analyst Jani Ziedins, who correctly called the move lower from $9,000, said bitcoin was ripe for another wave of selling. “Unless we can find buyers willing to pull us out of these lows, it is almost inevitable another negative headline will come along and send us tumbling lower,” said Ziedins in a Friday note.

“At this point dip buyers don’t want to (or can’t because they are already fully invested) save this cryptocurrency and that means lower-lows are ahead,” Ziedins said.

Altcons and futures dive

Altcoins, or digital currencies other than bitcoin, haven’t been spared. EtherETHUSD, -10.55%  shed 7.7% to $485.19, Bitcoin Cash BCHUSD, -12.85%  is down 7.8% at $801.40, Litecoin LTCUSD, -12.00% is down 8.4%, last trading at $88.36 and Ripple XRPUSD, -7.91% fell 5% at 51 cents.

In futures trade, the Cboe July bitcoin futures XBTN8, -8.77%  contract is down 5.7% at $6,345 and the CME June contract BTCM8, -8.49%  is down 5.8% at $6,325.

Read more at:  Market Watch

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