Cryptocurrencies continue to decline due to regulation fears

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Along with other concerns concerning government regulation of cryptocurrency cropping up, Bitcoin and other coins continued to drop in value, negating the $550 billion in value it earned for the global cryptocurrency market since the beginning of 2018.

According to Japan’s Nikkei Business Daily, two cryptocurrency exchange startups revoked their applications to the Japanese Financial Services Agency after they were advised to boost their security features. This comes after the reported theft of Coincheck,  a cryptocurrency exchange platform that lost $500 million in tokens due to the heist.

At the same time, Twitter, the microblogging media site, announced plans to follow Google and Facebook in banning cryptocurrency ads on their platform. Early in March this year, the Bank of International Settlements warned central banks worldwide to exercise caution before making a move towards launching their own digital currencies.

Mark Carney, Governor to the Bank of England said cryptocurrencies were “failing” and requested for a global crackdown of the market. In the U.S., the Securities and Exchange Commission issued subpoenas as part of its crackdown against Initial Coin Offerings or ICOs.

“I think our Main Street investors look at these virtual currency platforms and assume they are regulated in the same way that a stock is regulated and, as I said, it’s farm from that and I think we should address that.” SEC chairman Jay Clayton said as he addressed lawmakers on the Senate Banking Committee in February.

All of the negative press has weighed heavily on the cryptocurrency market. After all, one of the reasons why digital tokens gained popularity is due to the fact that they are not regulated and are anonymous.

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