Crypto currencies keep diving as SEC warns against illegal exchanges

On Thursday, Bitcoin as well as other crypto assets kept diving after the Securities and Exchange Commission dared to warn against suspicious crypto exchanges.

Bitcoin showed an outcome of $9,757.10, sliding 7.88% on the Bitfinex, which is not far from its overnight minimum of $9,572.

On Wednesday, the SEC warned market participants against quite suspicious online platforms, telling that any exchange, which trades digital assets classified as securities are bound to be registered with the watchdog.

In spite of the fact some of these platforms utilize strict standards to deal only with high-quality digital currencies, the SEC doesn’t think these standards or the crypto assets chosen by the platforms shouldn’t be likened to the listing requirements of national securities exchanges, as the agency pointed out.

The SEC announcement emerged the same day that crypto exchange platform Coinbase told it’s on the verge of introducing a weighted index fund to have to do with first-time crypto investors. As the virtual currencies gain greater popularity, watchdogs around the globe have been discussing the best way to have cryptocurrencies regulated.

Besides this, on Tuesday Jack Weinstein, US District Judge ruled that the CFTC was free to file a fraud lawsuit against Patrick McDonnell as well as his company dubbed Coin Drop Markets. Since 2015 the agency has classified Bitcoin to be a commodity, while Weinstein’s ruling generally underpins that decision.

Crypto assets were also held back by reports that Japan’s Financial Services Agency had seven crypto exchanges punished for not having adequate internal control systems. Two exchanges, FSHO and Bit Station were forced to suspend trading for one month.

As for other virtual currencies, they headed south, with Ethereum, the world’s number two crypto asset by market cap, edging down 5.63% hitting $743.91.