Bitcoin Drops To Four-Month Low After Warning On Money Laundering Of Japanese Financial Regulator

Yesterday, there was more bad news for the investors of the world’s largest cryptocurrency as Bitcoin plunged to a four-month low after the financial regulator of Japan warned six digital currency exchanges to improve their anti-laundering systems.

On Bitstamp, the price of Bitcoin dropped to as low as $6,085.59. It came as close to going down its lowest level for the year of only below $6,000.

On the other hand, according to CoinDesk, the digital currency dropped ell to $6,081, breaking below $6,400 for the first time in around a week and going down its lowest level since the 6th of February.

Despite a massive increase of 1,300 percent during the previous year, the bubble of Bitcoin has exhibited signs of disintegrating as it has dropped by almost 56 percent this year.

An announcement that was made by the Financial Services Agency of Japan informed exchanges including QUOINE, bitFlyer, Bit Bank, BTC Box, Bit Point, and Tech Bureau to clean up their act when it comes to the prevention of money laundering.

The order from Japanese regulator led bitFlyer — the largest cryptocurrency exchange in the country — to suspend the creation of new accounts while the exchange makes improvements, particularly in its measures to stop terrorist financing and money laundering.

In a statement that was posted on its website, bitFlyer stated: “Our management and all employees are united in our understanding of how serious these issues are, as well as how serious we are in responding to them going forward.”

The news comes after another blow for cryptocurrencies that was revealed last week as Bithumb, a South Korean exchange, was hacked for approximately $35bn worth of coins.

Peer-to-peer money has come under new pressure during hte recent weeks after two South Korean exchanges announced that they were hacked. That raised new concerns regarding the security of investor holdings.

Japan is one of the most crypto-friendly jurisdictions. The new pressure in the country demonstrated the fragility of the market to regulatory moves in the absence of much positive news.

Today, bitcoin was able to recover slightly, edging up by one percent to $6,116.19.