Bitcoin Slips Below $9,000, Crypto Market Valuations to a Month Low

Just when the crypto markets were seen recovering from the early woes of this year, a bearish sentiment has yet again curtailed the digital currency market. The crypto markets have reacted following the regulatory news coming from around the globe.

Earlier this week, the SEC cracked a whip on all those crypto exchanges operating in the U.S that appear to investors to be SEC-registered and regulated, but in reality, they are not. The SEC in its announcement said that the federal agency has noticed that there are some online platforms for trading digital assets that are operating by unlawful means.

The SEC made its stand clear saying that all those platforms falling under the definition of security should get themselves registered with the agency. The commission said that "If a platform offers trading of digital assets that are securities and operates as an 'exchange,' as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

It further added that “The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not.”

Following this news, the Bitcoin price is seen correcting heavily by more than $2500 in just past two days. From its week high of $11.6K, Bitcoin has now slipped to sub $9K levels and is currently trading at $8903, as per our data .

The current trading price of Bitcoin is the lowest in the last 20 days’ time period. Following the Bitcoin correction, other cryptocurrencies too are seen correcting majorly as even Ethereum going below sub $700 levels. Moreover, the overall cryptocurrency market valuation has also taken a nose-dive touching $350 billion from its monthly high of around $520 in February last month.

However, it is not just the SEC, but even Japan’s regulatory body The Financial Service Agency (FSA) is seen taking a tough stand recently. Following the $500 million of the Coincheck exchange, the FSA is seen tightening its grip on the exchange operators and have asked them to necessarily implement the anti-money laundering rules and take necessary security measures to protect the investor’s funds.

The FSA has also asked the exchanges to submit their status of implementation by March 22nd, this month. On Thursday, March 8, the FSA also slapped two exchanges - FSHO and Bit Station - with one-month suspension notices after it discovered about the misuse of customers funds.

Moreover, a few reports also suggest that the latest downturn is because of the $400 million sell-off by the attorney and bankruptcy trustee of Mt.Gox, which was formerly the biggest crypto exchange but later got bankrupt in 2014 after having reportedly lost 800,000 BTC coins worth $500 million then.