Cryptocurrencies Tumble After SEC's 'Unlawful' Exchanges Statement

[kcarbotte]

Another sea of red is plaguing Cryptocurrency traders after the SEC issued a strong warning about “unlawful” cryptocurrency exchanges. Nearly every digital currency tumbled today, and most of them fell more than 10%.

Cryptocurrencies Tumble After SEC's 'Unlawful' Exchanges Statement : Read more

 

[Dark Lord of Tech]

Hopefully they tumble very very low , so people can build a decent Gaming setup at a fair price.

 

[InvalidError]

The noose on crypto-trading got a little bit tighter. Not a major issue until more countries choose to do something similar.

 

[Dark Lord of Tech]

It will eventually fall , I agree , it's only a matter of a few more countries jumping on board.

 

[TJ Hooker]

If an exchange resides in a country that passes a law like this, and they don't want to abide by securities regulations, I feel like they'd probably just reincorporate in a different country. Also, decentralized exchanges are growing, and I'm not sure how feasible it is to regulate those based on the laws of any particular country.

 

[mapesdhs]

Hillarious ruling by the SEC, the inevitable attempt by the state to prevent wealth being exchanged outside its control, because of course state-controlled systems always do everything by the book. The long history and legacy of the Fed shows reality is very different, actively creating fake money to bolster up an economy by buying its own debt and junk products, all to make it look like everything is ok because money appears to be at least moving through the system. Numbers are fun, here are some good ones:

http://www.usdebtclock.org/

 

[Math Geek]

really they may not be able to monitor and regulate all the exchanges but what they do is the same thing they do with all the other ways to move money around. they regulate it through the banking system. if an exchange decides ot move country they now fall under a ton of other international banking laws. so moving the bitcoin would still be easy to do but getting cash in and out of the network is where the problem lies.

same thing they did when the US wanted to kill the online poker world. they knew they could not make something illegal based in another country. so they instead made it illegal for the US banks to handle the money coming and going from the players here in the US. that pretty much killed it for US players since they could not get money onto and off of the sites.

same thing they are doing here. registering the exchanges is simply a way for the gov to monitor who is using them and ensure they are paying taxes. not the same thing as killing it completely but i'm sure many folks using bitcoin would prefer to stay off any gov's radar.

 

[InvalidError]

If an exchange resides in a country that passes a law like this, and they don't want to abide by securities regulations, I feel like they'd probably just reincorporate in a different country.

If most major countries adopt SEC-style regulations for crypto-currencies, which makes sense from a consumer protection point of view so I have very little reason to doubt many other countries will step in, then that leaves unregulated crypto with only shady countries to trade in.

How would countries like Niger like the USA pulling all military and humanitarian help out of the country, slap a trade embargo on top and ask allied countries to do the same?

 

[matthew.mark.harris]

SEC just showing how scared they are of crypto.

 

[bit_user]

Unless you're a criminal, it's just dumb to use an unregistered exchange. As they say, you have no legal protections and do you really think such exchanges are the most secure against hackers?

I didn't touch Bitcoin until I could deal with a legit exchange that (as much as anyone) does things by the book. The last thing you want is to get smacked with money laundering charges. You just have to accept that if you're a US citizen, you have to follow the securities laws. Anything else is just playing with fire.

 

[bit_user]

The noose on crypto-trading got a little bit tighter. Not a major issue until more countries choose to do something similar.

No, nothing changed. They're just reminding people of the securities laws that always applied to crypto currencies since the US government decided to regulate them as an asset (which was like 5 years ago).

 

[natx808]

Hopefully they tumble very very low , so people can build a decent Gaming setup at a fair price.

Probably this summer when it gets hot we will see a flood of used cards on ebay.

People won't be able to turn a profit if they have to run their AC 24/7.

Actually people are starting to part out their mining rigs and sell them since the profitability is going down the tubes.

 

[Math Geek]

i don't know. at still over $10,000 apiece, it should still be profitable if the dedicated miner gets in with a good pool. i know it has gotten a ton harder to mine them now but at $10,000+ there is still plenty of incentive to stay in the game. i'm sure smaller miners running only a card or 2 won't stick with it. but no reason for someone running a dozen cards to not be able to turn a profit.

at least the few folks i know running larger set-ups are still making plenty to justify staying in.

 

[TJ Hooker]

i don't know. at still over $10,000 apiece, it should still be profitable if the dedicated miner gets in with a good pool. i know it has gotten a ton harder to mine them now but at $10,000+ there is still plenty of incentive to stay in the game. i'm sure smaller miners running only a card or 2 won't stick with it. but no reason for someone running a dozen cards to not be able to turn a profit.

at least the few folks i know running larger set-ups are still making plenty to justify staying in.

You seem to be referring to Bitcoin prices, but refer to mining with cards...
Nobody is GPU mining bitcoin anymore, that ended years ago due to ASICs. And AFAIK most bitcoin mining is in industrial scale operations (mostly in China I believe) so I doubt they're turning off their rigs during the summer to save on A/C.

Pretty sure @natx808 was referring to altcoin miners (ethereum, etc.), many of whom are small time running a few cards up to a few racks in their apartment/basement/whatever. Given that eth has been down anywhere from 30-50% (depending on when you look) from its all time high for going on two months now, I imagine some people are starting to panic a bit and sell off their gear.

 

[velocityg4]

The crypto investors remind me of my cat. Some minor sudden noise or movement. It pops up in the air and runs off. Then comes creeping back a few minutes later.

 

[bit_user]

The crypto investors remind me of my cat. Some minor sudden noise or movement. It pops up in the air and runs off. Then comes creeping back a few minutes later.

Not just crypto, but true of speculators in general.

 

[beayn]

I'm pretty sure this dip was caused by the rumored Binance exchange hack, not any government announcement. It wasn't long after Binance froze withdrawls on the rumors that BTC price dropped $1000 in 30 minutes. Turned out it was a 3rd party bot API that was hacked, not the exchange.

 

[ElectrO_90]

"The SEC recommends that investors use platforms that are registered with the Commission because there's no way of knowing if an unregistered exchange adheres to fair and ethical practices."

Yes because every registered company is Ethical.....Never ever has there been any scandals under SEC rules.

 

[InvalidError]

Yes because every registered company is Ethical.....Never ever has there been any scandals under SEC rules.

The SEC may not be perfect but it does make insider trading and market manipulation considerably more difficult than having no standards whatsoever.

 

[gggplaya]

"The SEC recommends that investors use platforms that are registered with the Commission because there's no way of knowing if an unregistered exchange adheres to fair and ethical practices."

Yes because every registered company is Ethical.....Never ever has there been any scandals under SEC rules.

You're misreading. The SEC doesn't say that registered companies are ethical. NO, they assume that every company is unethical, but registered companies like the one I work for have to meet certain regulatory requirements. The SEC also spot checks them with actual personnel and go over their financial with them to make sure they're in compliance with ethical practices. The process isn't 100% perfect at catching criminal activity, but it's just like our normal police force, it keeps most of us compliant, with a few outliers here and there.

 

[Onus]

Perhaps the most significant aspect of crypto currency is that it cannot be centrally controlled by the parasites. If people mine and/or use it in that context, there's no need to ever convert a crypto into fiat currency. As the number and type of vendors who accept it increase, it will be possible to take one's transactions entirely off-grid; not tracked by government extortionists, advertisers, or other malignant actors.

 

[BC_Homegrown]

While the Binance "hack" and possibly the SEC ruling in the USA had some effect on the prices I'm sure, the main reason for Bitcoin dropping (yet again) yesterday and since December of 2017 was the trustee of the Mt. Gox bankruptcy dumping thousands of Bitcoin at different times to repay creditors.

https://www.zerohedge.com/news/2018-03-07/bitcoins-tokyo-whale-sells-400m-bitcoin-bitcoin-cash

I think it speaks well of the strength of the market that it bounced back each of those times, but it could very well continue to be a bumpy road in the near future.

TLDR: Price crashed repeatedly since December due to him liquidating 18k Bitcoin. He holds another 1.9 Billion dollars worth

 

[InvalidError]

As the number and type of vendors who accept it increase, it will be possible to take one's transactions entirely off-grid

You won't be able to purchase from any local vendors using crypto currencies if the government declares those illegal. Even if crypto doesn't get outright struck out, vendors have external costs like rent, power, wages, shipping, etc. that will require some ability to convert crypto currencies to cash.

Also, regardless of whatever the currency is used, you still owe income and sales taxes if you don't want to get charged with tax evasion when you eventually get found out, which would be sooner than later with most crypto currencies' public ledgers and vendor transactions tying wallet IDs to names and addresses.

 

[rwinches]

I here the next big thing is silk worm farms.

The main problem with it all is no price stability, no finite number of miners no underwriting.

 

[TJ Hooker]

I here the next big thing is silk worm farms.

The main problem with it all is no price stability, no finite number of miners no underwriting.

What does the lack on a hard upper limit of miners matter?