Bitcoin saw its value drop below $9,000 during trading Friday amid a major selloff for the cryptocurrency market.
The number one digital currency fell by nearly 10 percent today, to $8,993, according to CoinMarketCap. Over the past seven days, this represents a near 20 percent drop.
Losses, however, could be seen right across the board. Ethereum is currently trading at $689, representing just over a nine percent decline in 24 hours. In the past week its value has fallen by more than 20 percent. Ripple is down 8.22 percent, at $0.795055, whereas bitcoin cash has dropped below the $1,000-mark and is trading at $987, with a 9.12 percent decline in value.
These losses are extended from earlier this week after the market came under pressure from the U.S. Securities and Exchange Commission (SEC). On Wednesday, it was reported that the agency stated that exchanges that offer the trading of ‘digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws’ would have to register with the SEC.
In a statement, it added:
The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.
That statement was followed after the SEC issued subpoenas in an bid to look into the initial coin offering (ICO) market and how they are structured at the end of February.
Additionally, yesterday Japan’s Financial Services Agency (FSA) ordered two digital currency exchanges to cease operating for a month after finding they lacked measures in place to ensure consumer protection. Those exchanges in question include Bitstation and FSHO.
However, five other cryptocurrency exchanges were also handed notices to improve their services. These were Tech Bureau, GMO Coin, Mister Exchange, Bicrements, and Coincheck.
Regulatory scrutiny over the market within Japan has increased following the hack at Coincheck at the end of January. As the biggest hack of its kind, criminals were able to steal $530 million worth of XEM, the native token for NEM.
As such questions have been raised over the safety measures cryptocurrency exchanges have in place, which has seen the FSA conducting onsite inspections at them.
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