The dramatic fall of Bitcoin and other cryptocurrencies continued around the world on Thursday. After rumours of Hong Kong based exchange Binance being hacked triggered the earlier plunge on Wednesday, cryptocurrencies were expected to register a growth on Thursday. But the hopes took a hit when US Security and Exchange Commission announced that online platforms trading digital assets which are considered as securities will need to register with the agency. This resulted in a nosedive in Bitcoin prices around the world which fell by more than $1000 within an hour. The other factor which contributed to the crypto crash of Thursday was the announcement made by Japanese government to suspend two cryptocurrency exchanges for a month accompanied with a stern warning to five other exchanges including Coincheck.

These combined increased in scrutiny of exchanges around the world has severely impacted the value of cryptocurrencies around the world. Bitcoin has fallen by over 20% in last 2 days. However, amid these increased efforts to regulate the cryptomarket, Spencer Bogart, partner at Blockchain Capital, provided assurance. According to him, “But of all crypto assets, bitcoin seems least likely to be deemed a security — by a long shot."

The SEC, in its statement, stressed on existing US laws which compels platforms which trades in digital assets which are securities and operate as an exchange, to register with SEC. The SEC further stated, “The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated when they are not. These platforms refer to themselves as ‘exchanges’ which can give misimpression to investors that they are regulated.”
The statement comes after weeks of subpoenas from SEC in its dire attempt to control a large share of trading platforms and exchanges. Elsewhere in Japan, regulators continued their crackdown on cryptocurrency exchanges. Japan’s Financial Service Agency issued notices to a large number of exchanges across the country. Regulators have also suspended Bit Station and FSHO for a month from any trading, Reuters reported. Government actions against crypto exchanges have increased after virtual tokens worth about $530 million were stolen from Coincheck earlier this year.
To sum up, cryptocurrencies, amid increased regulation and resulting panic in the market, will take time before returning to the path of growth in financial value.