The last few days have given new credibility to fears and worries of a coming altcoin apocalypse. Thanks to the SEC delaying their decision to approve any of the BTC ETF applications, cryptocurrencies are plunging. The truth is that the altcoins are both indirectly, as well as directly, impacted by the SEC and Bitcoin. There is no doubt that the VanEck Bitcoin ETF delay announcement caused the BTC price decline. More worrisome is that it also caused practically every major altcoin to crash as well. This includes such standards as ETC, LTC, XRP, DASH, and more.
Japan’s Main Financial Regulator Throws More Altcoin Shade
The main financial regulators in Japan only made matters worse for the digital asset space. They intimated that they are considering updating their cryptocurrency sector regulatory framework in order to quell speculation. Back in April of last year (2017), the FSA Financial Services Agency of Japan began to enforce new legislation that changed the Payment Services Act.
It officially recognized the digital assets as viable legal tender. Their pioneering move back then gave a huge shot in the arm to the national cryptocurrency exchanges. Operators could register with the FSA, obtaining a license that would permit them to run a Japanese digital assets exchange.
The problem is that this forward thinking Japanese regulator did not view the cryptocurrencies as primarily an investment. They believed it would become mainly a transacting instrument. Now, they are considering adjusting the liberal regulations in order to quell speculation in the space. In April, they established an expert panel to close up missing regulation gaps versus practice in the digital assets. It means that additional regulation is coming in Japan.
This was not the only bad news for the altcoins and Bitcoin either. The Japan Virtual Currency Exchange Association proposed that it will seek a four to one margin trading limit. It would cut down significantly on the speculation of the cryptocurrencies, drying up their volume.
This is likely part of what prompted largest cryptocurrency exchange in the world, Binance, to move their headquarters. They are relocating their office from Tokyo to Malta. The Mediterranean island nation prides itself on being a pioneer in its acceptance of cryptocurrencies and blockchain technology.