The Main Reasons Why the Crypto Market in Red now

Reasons Why the Crypto market in Red - CoinShot

Hacker attack on Bithumb

The popular crypto exchange Bithumb reported the theft of the cryptocurrency at $31 million after a “malfunction” in the system, earlier this week. By the way, it was during these days that Bitcoin and the Etherium fell by 11% and 15%.

In addition to this hacker attack, these days the transaction speed and Bikkoy’s fees increased significantly due to the fact that the exchange of a huge amount of cryptocurrency was going away from their hot wallets.

Fortunately, Bithumb promised to fully compensate the losses to those who suffered from this hacker attack.

Violation of confidentiality in India

On Thursday, the India’s crypto exchange Zebpay, announced possible violations of their bank accounts. This is due to the April circular issued by the Reserve Bank of India (RBI).

Such a step once again gives reason to doubt the attitude of the Indian government to cryptocurrency assets, which causes concern both among existing crypto holders and potentially new ones.

News about the 10% tax in South Korea on crypto

Chosun Ilbo, a popular South Korean news publication, released the news of a tax charge of 10 percent of revenue from crypto transactions.

Fortunately, the news turned out to be faked, because the Ministry of Strategy and Finance of South Korea reported that so far they have no definite plans for taxing digital assets.

Despite the absence of an official report on the 10-percent tax rate, the news had a negative impact on the crypto market.

Termination of anonymity on the Japanese BitFlyer exchange

BitFlyer, one of the major cryptocurrency exchanges, announced the closure of registration of new accounts in order to comply with the new Japanese regulation on improving the business to the agency related to financial services.

This step from BitFlyer aims at a nationwide increase in security and transparency in digital asset relations in Japan. This focus on risk management means that Japanese clients will need to verify their identity documents, if they have not already done so and possibly provide financial and personal records. Only after confirming the identity of the Crypto holder can use Japanese cryptocurrency exchanges.

Problems with the top cryptocurrency EOS

EOS came out of their mainnet last week, which is a two-week delay from the planned schedule. Then EOS went around its own arbitration court over the charge of keeping the stolen funds and froze seven accounts.

This caused resentment from crypto critics who accused EOS of violating the basic entities of blockchain technology – “decentralization” and “immutability.”

The mobile wallet security issue

Also this week, NANO’s cryptocurrency published a desperate message in its Twitter account that warned of a security issue with the new Android mobile wallet generator.

This problem was detected immediately after the launch of the Android mobile wallet and caused a lot of panic among its users. A few hours after the detection of the problem and subsequent panic, the developers released an update to the wallet, which eliminated the issue.