On Friday, bitcoin prices fell sharply losing more than 5% as news broke that Japan regulator ordered several major cryptocurrency exchanges to take additional measures to combat money laundering.
The beginning of the Asian trading session on Friday bitcoin met at around $6700. The order of the Japanese Financial Services Agency resulted in the termination of opening of new trading accounts on several Japanese stock exchanges and triggered massive sale-off that brought market to $6440 just for an hour.
In the short term, this reduces the capital inflow to the cryptocurrency market, which does not have stable volumes for the past two months.
Bitcoin capitalization has fallen by about 50 percent since January, according to CoinMarketCap.com. In addition, the trading in Japanese yen amounts more than 60 percent of the daily bitcoin volume. On this background, we can expect an increase in negative trends in the digital market.
Japanese and Korean regulators are in the forefront of regulating the digital market. Japan is the first country that adopted the national system for regulating in crypto trading after a series of high-profile scandals involving the largest cryptocurrency exchanges and the loss of client funds.
Shortly before the start of the American trading session, the first digital currency is trading at around $6200. The second-largest digital currency of the market - ethereum is declining even more rapidly, losing over 8% per day, trading at $475 per coin.