3 months ago
Cryptocurrency News

Bitcoin Dips Below $4,000 Level in Subdued Trade

Investing.com - Cryptocurrencies failed to remain in the green on Wednesday, as Japan’s financial watchdog plan to require exchanges

Investing.com - Cryptocurrencies failed to remain in the green on Wednesday, as Japan’s financial watchdog plan to require exchanges to provide information on clients.

Bitcoin fell 2% to $3,922.0 on the Investing.com Index, as of 8:32 AM ET (13:32 GMT).

Cryptocurrencies overall were slightly lower, with the total coin market capitalization at $125 billion at the time of writing, compared to $129 on Tuesday.

Ethereum,or Ether, decreased 2% to $108.83 and Litecoin was at $30.897, down almost 3%, while XRP slumped 1% to $0.35047.

Digital coins have fallen dramatically in recent weeks, with Bitcoin trading at 80% less than its value a year ago as traders worry about increased regulatory scrutiny and volatility.

In Japan, the government is considering requiring digital exchanges to provide information on clients suspected of tax evasion. Income from cryptos is considered taxable in Japan and anyone with an income of 200,000 yen or more per year must declare their digital coins as income.

The new tax system would legally require exchanges to disclose client names, addresses and ID numbers to the National Tax Agency.

In other news, the Swiss Financial Market Supervisory Authority (FINMA) published guidelines for its Fintech license being released on Jan. 1. The permit hopes to promote more innovation in Switzerland, including in cryptocurrency and blockchain, by easing existing regulations that could be a barrier to entry.

The guidelines provide more information about the application process, including disclosing shareholders, business plans and legal procedures.