In addition, the Wall Street analyst said, “We believe there is selling pressure by crypto exchanges…subject to income tax in U.S. jurisdictions.”
Regulatory actions are big contributors to the decline of bitcoin
There are two other reports that are likely contributors to the decline of bitcoin on Monday.
First, Japan’s financial regulator ordered a two-month suspension of the operations of two cryptocurrency exchanges—Eternal Link and SFHO. The country’s Financial Services Agency (FSA) issued an administrative penalty order against both cryptocurrency exchanges due to insufficient know-your-customer (KYC) procedures.
Second, South Korea’s financial regulators announced an on-site inspection into three domestic banks to determine their compliance into the country’s new anti-money laundering rules for cryptocurrency exchange accounts.
Regulators worldwide intensified their scrutiny into bitcoin and other cryptocurrencies. However, regulators are divided on how to control the cryptocurrency market, which is highly fragmented and volatile.
