Ripple price (XRP) extended its underperformance since the start of this week; market pundits are suggesting different reasons for this – including the increasing supply of ripple coins and some are blaming its centralized nature. The price of the XRP coin plunged below $0.90 level today for the first time in the last month, even though Ripple made an agreement with 61 Japanese banks to develop a payment app called ‘Money Tap’.
The broader selloff in crypto markets due to increasing regulatory actions across the world has impacted ripple price in the last couple of days.
Source Image: coinmarketcap.com[1]
Ripple CEO Support Registration
While Ripple CEO Brad Garlinghouse admired regulators strategy of registering cryptocurrency exchanges and outlining broader trading policies, crypto markets aren’t welcoming the regulator’s decisions. The CEO suggested crypto markets to cooperate with regulators.
He said, “It’s incredibly important that the entire industry recognizes that we have to work with the regulators, we have to work with the system…the blockchain revolution is happening from within the system it’s not going to happen from outside the system.”[2]
Japanese regulators are also punishing crypto exchanges for leaving flaws in their trading tools and assets security plans. Japan’s Financial Services Agency stopped Bitstation and FSHO from trading for one month; the authority has also warned five other important exchanges to enhance their system and internal security.[3]
The investigation related to the Coincheck hack has outlined several discrepancies in crypto exchanges – including poorly trained staff, inadequate compliance with anti-money laundering standards, and misappropriated cryptocurrencies.
The U.S. SEC announced that it will not allow any cryptocurrency exchange to operate unless it holds the registration certificate from SEC. [4]
The wider market opinion favors regulators interference and policy guidelines, simply because it will decrease the illegal activities occurring through digital currency use. This may also help to reduce the volatility in prices.
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References
- ^ coinmarketcap.com (screenshots.firefox.com)
- ^ said (www.express.co.uk)
- ^ stopped Bitstation and FSHO (www.forbes.com)
- ^ announced (cryptocurrencynews.com)
- ^ Twitter (twitter.com)
