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Cryptocurrency prices tumbled Friday after the Japanese Financial Services Agency ordered six exchanges to improve business practices after a series of inspections over the past few months.
The exchanges hit with the notices are QUOINE, BTC Box, Bit Bank, Tech Bureau, Bit Point and bitFlyer—Japans largest digital currency exchange.
In the case of bitFlyer, a translated version of the FSA notice said: “an effective management system has not been established to ensure proper and reliable operation of the business, as well as countermeasures against money laundering and terrorist financing.”
The news is a blow for the crypto community that had begun to see some light at the end of the tunnel after some favorable rhetoric from regulatory officials and some price stability ahead of $6,000, but today’s news puts the Feb. 6 low of $5947.40 back on the radar.
A single bitcoin last changed hands at $6,152.23, down 8.4% since Thursday 5 p.m. on the Kraken crypto exchange.
The total value of all cryptocurrencies has fallen $30 billion in the last 24 hours to $258 billion, according to data from CoinMarketCap.
It was a matter of time
The timing of the news comes just hours after analyst Jani Ziedins, who correctly called the move lower from $9,000, said bitcoin was ripe for another wave of selling. “Unless we can find buyers willing to pull us out of these lows, it is almost inevitable another negative headline will come along and send us tumbling lower,” said Ziedins in a Friday note.
“At this point dip buyers don’t want to (or can’t because they are already fully invested) save this cryptocurrency and that means lower-lows are ahead,” Ziedins said.
Altcoins crumble
Altcoins, or digital currencies other than bitcoin, haven't been spared. Ether shed 10% to $473.05, Bitcoin Cash is down 12.2% at $762.50, Litecoin is down 11.6%, last trading at $85.26 and Ripple fell 7% at 49 cents.
In futures trade, the Cboe July bitcoin futures contract is down 8.8% at $6,135 and the CME June contract is down 8.7% at $6,125.