The crypto market took another major blow and today we are going to present the main reason why Bitcoin, Ethereum and Ripple (XRP) are going down. We should also mention that the crypto market has been on a rocky road ever since 2018 started and investors should already be accustomed to these downswings.
Top 100 Cryptocurrencies are Losing Value
As previously mentioned, the crypto market has taken a major blow. Bitcoin is down by 4.70% an its valued at $8,515.89. Ethereum also lost 6.55% of its total value and this puts it at $522.80 per token while Ripple (XRP) dropped 6.62% of its value and its priced at $0.636776. Nonetheless, all other top 100 cryptocurrencies are also in the red.
The main reason why the market is losing value is because of Binance. Binance is one of the biggest cryptocurrency exchange platforms in the world and Japan’s Financial Services Agency (FSA) recently announced that it plans to give Binance a warning about operating without registration.
Binance is based in Hong Kong and it failed to register its platform according to Japan’s mandatory regulation which was introduced last year. To make things even more interesting, Binance is saying that it doesn’t know anything about this warning.
Operating Without Registration
Seeing how this confusion is affecting investors, Changpeng Zhao who is the CEO of Binance decided to let everyone know that he is working on this issue. Furthermore, the CEO tweeted that he is having “constructive dialogs” with the FSA.
While it might seem like this recent market crash is caused by the regulation imposed by Japan, this is not actually the case. These regulations have been put in place with the sole purpose of trying to stabilize the market and not to crash it.