Cryptocurrency Market Last Week: Bitcoin Fluctuated, Solana Down 23%
Last week, the virtual currency market fluctuated due to information about Korea’s increased virtual currency surveillance, fake information about Walmart accepting transactions in Litecoin.
Korea is tightening its virtual currency activities, with investors threatening 2.6. to lose Billion USD
The Financial Services Commission of Korea (FSC) has given domestic and foreign cryptocurrency exchanges until September 24th to legally register. This is one of the efforts to tighten supervision with the virtual currency sector. A number of small floors will be closed.
To become a legitimate trading platform, South Korea cryptocurrency exchanges must work with a local bank and open a bank account with the customer’s real name. However, Korean banks refused to cooperate because of the risk of being involved in money laundering and other financial criminal activities.
Most of the local exchanges in Korea do not meet the government’s eligibility to register as a legal trading platform. According to sources from several congressmen and industry insiders, it is likely that nearly 40 of the 60 cryptocurrency exchanges in South Korea will close after September 24th.
The bulk shutdown of small exchanges will also eliminate 42 “kimchi cryptocurrencies”. According to Professor Kim Hyoung-joong, director of the Digital Currency Research Center at Korea University, these are locally listed cryptocurrencies that trade for won.
“A situation similar to the mass exit from the bank will arise, as the deadline is shortly before September 24th, when investors cannot sell digital currencies listed on small exchanges,” explains Foblgate expert Lee Chul-yi. “All of a sudden they lose all their money. I wonder if the governing bodies can handle the side effects. “
“Korean investors can suffer heavy losses as transactions are suspended, assets are frozen on small exchanges, and customer protection may not be a priority for exchanges that are about to close,” said Cho Yeon-haeng, chairman of the Korea Federation of Financial Consumers .
Walmart denies accepting Litecoin
On the evening of September 13th, the price of Litecoin jumped 25% and then fell vertically again after a fake press release wrote that Walmart will accept this coin to pay for online orders. According to CNN, commented that this appears to be an extremely successful pump-and-dump scheme.
However, a Walmart spokesperson has confirmed that the company’s announcement that it will accept litecoins is fake. Following the Walmart announcement, Litecoin fell from over $ 220 to $ 178 – roughly the price it was trading before the fake news was released.
Laos allows the trading and mining of cryptocurrencies
Laos has allowed cryptocurrency trading and mining, marking a change in policy to help the Southeast Asian country benefit from crackdown on cryptocurrency mining in China.
Analysts say this move is a logical step for a country with an electricity surplus (from hydropower) like Laos. However, some experts point out that some criminal groups can benefit from trading cryptocurrencies.
The ministries will work with the Central Bank of Laos (BoL) and Electricité du Laos, the national electricity company, to oversee the digital currency industry, according to The Laotian Times. Authorities will meet this month to discuss the digital currency issue.
“The reality is that Laos has excess electricity generation capacity and does not have much domestic demand for electricity,” said David Tuck, partner at Lyriant Advisory. “And one of the main requirements for mining is to have huge amounts of electricity.”
Bitcoin price fluctuated, Solana broke the bullish cycle
After falling earlier in the week, Bitcoin price rebounded to 47,650 USD. In the past 7 days, Bitcoin price has increased 5.45%. Similarly, other coins in the top 10 also rose slightly, with Ethereum gaining almost 5%.
Notably, Solana – the coin that recently entered the top 3 virtual currencies – is down almost 23% over the past week and is currently the seventh largest digital currency.
The market capitalization of cryptocurrencies rises to 2,128 Billion USD, from 2.048 Billion USD at the point in time 7 days ago.
|Price movement of the top 10 cryptocurrencies