Japanese financial services (FSA) agency is at the forefront when it comes to regulating the cryptocurrency industry. According to a recent report, it is going to tighten the rules and regulations which investors have to follow in order to invest in cryptocurrencies. Ever since the $ 530 million hacking the Japanese cryptocurrency exchange, the financial services agency has been at the forefront of creating proper regulations to safeguard the investors. This tightening of rules is also a move in the same direction.
According to the rules which are now proposed by the agency are as stringent as the ones which apply to the stock brokerages as well as the securities formal trade in stocks. That is why it seems like the level of security which will be provided to the investors will also be on the higher side.
Should you buy the dip?
With that being said, the question which arises whenever any news of cryptocurrencies comes out is that whether you should buy the dip in the cryptocurrencies. Currently, Bitcoin is trading much lower than the highs of $ 20,000. That is why most of the investors are always asking the questions as to whether you should buy the dip or whether you should wait it out.
Similarly, when you look at some of the other cryptocurrencies, they have fallen even more significantly from the top. Many of them are down by 75% as well. That is why it is not easier for the investors to decide whether they should invest in the cryptocurrency is right now or whether they should wait it out.
If indeed, there is a proper regulatory framework in Japan when it comes to cryptocurrency investments, it will become very easy for many investors to invest in cryptocurrencies. This will also increase the credibility which will, in turn, increases the price of the cryptocurrencies.
Thus, investors are still not sure whether that these increased regulations are actually beneficial for them or not. A lot will be dependent on the stringent rules and regulations which will be unveiled pretty soon by the financial services agency in Japan.
With Japan being such a big market for cryptocurrencies, any change in the regulatory framework will have a definite impact on the cryptocurrencies. This is the reason why most of the investors think that it would be a good idea to wait and watch it out. Only once the effects of these new rules and regulations are cleared, investment in cryptocurrencies would be a good idea.
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