The first three months of 2018 in the crypto industry were marked first of all by the “bloody” drop of bitcoin and all the altcoins.
In addition, the first quarter was remembered by the change in the positions of some regulators – the US SEC and the Japanese FSA made a number of statements regarding digital currencies, which, of course, also affected the crypto market.
What other events have occurred over the past 3 months, and how they affected the cost of bitcoin, we will analyze in the quarterly review.
JFSA, the Japanese regulator, said that it will closely monitor unregistered trading floors and, in support of its words, on March 8 suspended the work of two exchanges – FSHO and BitStation – for a month. It is worth noting that in 2017 Japan recognized bitcoin as legal tender on the territory of the country and officially registered 16 crypto-instruments.
SEC, the American regulator, also expressed concern about the unregulated nature of crypto-exchange platforms. However, the Commission’s main focus is on sites trading ICO-tokens, which in some cases can be classified as unlicensed securities. Such statements of the SEC, of course, puzzled all exchanges, not registered in accordance with the laws on securities.
For the first time in history, the Crypto-currencies were discussed at the G20 on March 19-20. The news from the summit was more positive – the participants agreed to adopt the existing measures to regulate crypto-currencies, and not to come up with new ones that are tougher.
The currency exchange Coincheck in January shocked its users with the news of a break-in and theft of $ 500 million in NEM. To track down and punish the robbers did not succeed, but losses to users were recovered from the reserve fund of the exchange. Most recently, the online broker Monex bought Coincheck for $ 33 million.
PRC announced its intention not to prohibit crypto-currencies, but gradual regulation of the crypto industry is inevitable. According to the head of the People’s Bank of China, “crypto-currencies are inevitable and they can not be avoided anywhere”, but the Bank does not recognize the cryptocurrency and does not consider it as an alternative to fiat money. In addition, there were rumours about the development of China’s national cryptocurrency.
Thailand refers to the cryptocurrency more positively. The law regulating the purchase and sale of digital currencies and ICO tokens was adopted, in order to avoid money laundering, tax evasion and market manipulation. The law obliged the crypto-investors to pay a 15% capital gains tax plus 7% VAT.
Venezuela has issued its own cryptocurrency El Petro, thereby circumventing US sanctions and improving its troubled economic situation.
According to experts, the fact that 36 thousand bitcoins were sold by the managing bankruptcy procedure of the Mt.Gox stock exchange, Nobuaki Kobayashi, had a special impact on the crypto market.
February was remembered by the purchase of the Poloniex exchange, which failed to cope with last year’s cryptocurrency boom and lost a huge market share, Circle company for $ 400 million. The company now plans to release an application for traders.
Binance Exchange, on the contrary, is developing steadily, having received seven million users in a hundred days. However, regulatory problems forced the stock exchange to leave Asia. After the FSA order, obliging the exchange to obtain a license to continue working on the territory of the country, Binance moved to Malta.
March was marked by the launch of the Lightning Network, a protocol that provides bidirectional, non-target payment channels of bitcoin-transactions.
Facebook, Google, Twitter, Yandex refused advertising crypto-currency on their pages, which also affected the behaviour of the courses cryptocurrency.
The price of bitcoin decreased, which affected the size of the commission in the detachment, respectively.
The total market capitalization at the beginning of the year was $ 840 billion. and fell by almost 70% (to $ 267 billion) by the second quarter. Most altcoins have become cheaper than bitcoins.
158 ICO for three months of this year has collected about 5 billion dollars, which is $ 1 billion more than last year. The record holder is ICO Telegram, which collected about $ 1.7 billion. It is worth noting that the messenger has not yet transmitted the keys of its users’ messages at the request of the Russian FSB, Roskomnadzor appealed to the court to block Pavel Durov’s offspring.
The first quarter of 2018 tested the strength of the cryptocurrency as much as it could, which as reflected in the mirror in the digital currency market. I would like to think that the second quarter will be more supportive of the crypto industry.