Today, the cryptomarket awoke to some troubling news. The bitcoin price rescinded about 5%, being the most visible cause the announcement By Nikkei that Binance would be halting its operations in Japan. This occurs after a short bull period in which Bitcoin touched again the 9.000 dollars mark. Ethereum also experienced a notable drop to 530 dollars.
The announcement of the (supposed) Binance cease of operations in Japan, could have had a negative influence on the market dynamics. The news was given by Nikkei and supposedly informed by a source in the FSA, due to the exchange not complying with the regulations of the country about licensing and KYC policies. Binance is a big player in the exchange world, so anything happening with this behemoth strikes the market in a big way.
Also, the Payza incident that happened yesterday could have affected the market in a negative way. As reported, the crypto exchange and direct competitor of Paypal, Payza was accused yesterday of acting without a license, money laundering and serving clients like Ponzi schemes and child porn rings knowingly. The service integrated bitcoin payments since 2014 and had recently scored a partnership with Dash to provide wallet services.
The market is still as volatile as ever, and it will remain to be so in the near future. So, if you’re not a hodlr, exercise extreme carefulness when investing in cryptocurrencies.