We already reported today that the market capitalization of the cryptocurrencies lost almost US$ 17 billion within 24 hours. Analysts do not believe the ground has been found yet. The market is confronted with considerable uncertainties about the future of cryptocurrencies and regulatory measures are one of these sources of uncertainty.
Today there was another blow against cryptocurrencies in Japan. Bloomberg reports today that the Japanese Financial Services Agency (FSA) issued so-called “Improvement Orders” against six leading Japanese crypto-exchanges to ensure compliance with the Anti Money Laundering (AML) guidelines, i.e. orders to improve business processes to prevent money laundering.
Money laundering is indeed one of the biggest problems for cryptocurrencies. OTC traders in Europe report that mainly from Eastern European countries billions of FIAT funds are being moved towards crypto. The international AML guidelines are not always strictly observed and compliance is an issue, traders report. It is therefore not surprising that the authorities are taking actionS against money laundering worldwide.
Some of the mentioned crypto exchanges like Bitflyer reacted immediately, halted the registration for new customers and announced an improvement of ID check procedures.
The intervention of the Japanese FSA is just another step that is weighing on the uncertainty surrounding the Krpyptov currencies. Crypto exchanges and OTS traders are currently recording declining prices with declining volumes. A trend reversal to a new “Crypto Bull Cycle” is currently not in sight.