Observers attributed Wednesday's move to several factors, including
issues at cryptocurrency exchange Binance, a warning from the U.S. Securities and Exchange Commission about exchange compliance and a report from the trustee of Mt Gox revealing that some $ 400 million in bitcoin and bitcoin cash had been liquidated over a several - month period.
Not exact matches
Whereas traditional investment methods require a firm to list in one country and utilize (
at least initially) one
exchange, creating and selling its own
cryptocurrency allows a firm access to finance from anyone, anywhere, outside the normal constraints imposed by state -
issued currencies.
Earlier this month, the FSA halted operations
at two
cryptocurrency exchanges (Eternal Link and FSHO) and
issued a business improvement order to a third
exchange called Last Roots.
Common stock - On March 9, 2017, the Company
issued (i) 125,000 shares of its common stock in
exchange for consulting services, valued
at $ 200,000, and (ii) 125,000 shares of its common stock for investments in
cryptocurrency, valued
at $ 100,000.
On March 9, 2017, the Company
issued 125,000 shares of common stock of the Company to an employee of the Company, in
exchange for an initial investment made in the form of
cryptocurrency, valued
at $ 100,000, based on the fair value of the investment on the date of such investment.
Binance, one of the world's biggest
cryptocurrency exchanges to date, decided to
issue 197,192,382 BNB in total, even though only 99,014,000 are in circulation
at present.
The timing of the launch comes
at a time when the nation's government has
issued restrictions on
cryptocurrency trading activities and is mulling a harsher crackdown on
exchange - based trading.
At issue is that, although the U.S. agency tasked with enforcing securities law - the U.S. Securities and
Exchange Commission (SEC)- has voiced concerns about
cryptocurrency tokens (even labeling one a security), it has yet to announce much in the way of formal rules.
At the same time, the FSA, which since April 2017 is authorized to
issue cryptocurrency operators licenses, granted with such a license only 16 crypto -
exchanges in Japan.
The number of Hawks available is strictly limited to the amount
issued for the crowdsale, in other words, when the crowdsale is ended, investors would have to purchase Hawks on
cryptocurrency exchanges at a price far higher than what is being offered in the ICO.
Cryptocurrency exchanges have enough regulatory
issues to deal with as it is, what with the threat of banking facilities being withdrawn
at short notice, without having to worry about the SEC breathing down their necks.
Nikkei also indicated that the agency is expanding its investigations, including on - site inspections
at other
cryptocurrency exchanges in the country to prevent a reoccurrence of the
issue.
David Harris, head of commercial innovation
at the London Stock
Exchange Group (LSEG), said that he looks forward to a day when central banks will
issue their own
cryptocurrency.
The company tries to set its clients
at the pace of the latest technology by eliminating the key
issues that face most
exchanges in the current
cryptocurrency market.
Reports of unauthorized sells on
cryptocurrency exchange Binance and technical
issues at cryptocurrency derivatives
exchange BitMEX have also added to bearish pressure around BTC.
In addition to the announcement, the FSA has also created a
cryptocurrency exchange industry study group which aims
at examining institutional
issues relating to
cryptocurrencies.
An
exchange issuing its own
cryptocurrency seems a little bit strange
at first glance.
The Wall Street Journal reported
at the end of February that the US Securities and
Exchange Commission (SEC) has «
issued dozens of subpoenas and information requests to technology companies and advisers» involved in the
cryptocurrency space.