Harare - Bitcoin price is reported to have recovered on Monday after dipping as low as $5,787 on Sunday, marking its lowest price so far in 2018 as Japan’s regulator called for improved measures at all local exchanges, according to Investing.com, a global financial portal and internet brand.
According to Investing.com, Bitcoin was trading at $6,169.9 by 1:30AM ET (05:30GMT) on the Bitfinex exchange, up 4.1 percent over the previous 24 hours.
Ethereum, the world’s second largest cryptocurrency by market cap, gained 0.6 percent at $450.6 on the Bitfinex exchange.
Ripple’s XRP token climbed 2.5 percent higher to $0.47575 on the Poloniex exchange.
Meanwhile, Litecoin added 3.7 percent to $79.96.
Bitcoin fell to as low as $5,787 on Sunday, which represented more than 70% decline in value compared to its December high just short of $20,000.
The fall in prices followed news that Japan’s Financial Services Agency (FSA) hit six Japanese crypto exchanges with business-improvement orders.
The companies must submit their plans by July 23, according to FSA.
Bitflyer, QUOINE, Bitbank, BTCBOX, BITPoint Japan and Tech Bureau were the exchanges penalized by the FSA, according to reports.
Bitcoin fell by as much as $200 last Wednesday following news of a security breach of South Korea-based exchange Bithumb.
The exchange announced on Wednesday morning in Asia that it has been hacked and 35 billion won (US$31.5 million) worth of virtual coins were stolen.
In Zimbabwe, there had been legal battles between the Reserve Bank of Zimbabwe with Bitfinance (Private) Limited (Golix) following the central bank order to all financial institutions in the country to stop trading or transacting in cryptocurrencies.
RBZ banned Golix from operating and ordered it to shut down its virtual currency exchange business.
In its argument, the central bank said, “RBZ has not authorised or licensed any person or entity or exchange for the issuance, sale, purchase, exchange or investment in any virtual currencies/coins/tokens in Zimbabwe. Exchanges such as Bitfinance (Private) Limited (Golix) and Styx24 are not licensed or regulated by the Reserve Bank.”
In a circular RBZ registrar of banking institutions, Mr Norman Mataruka added that the bank’s decision was meant to protect the public and safeguard the integrity, safety and soundness of the country’s financial system.
In a successful application against the ban by Bitfinance, which operates as Golix, High Court Judge Justice Alfas Chitakunye provisionally lifted the ban imposed by RBZ and ordered Golix to resume business.
However, RBZ disputed Golix’s case that they acted outside of their authority in issuing the ban saying the Banking Act gives them the authority.
“The Banking Act gives the Bank [RBZ] the powers to supervise banks and prescribes a variety of supervisory actions that the bank may take as a measure to correct any conduct that may be a threat to the smooth operation of the banking and financial sectors.
“It is as a result that the Bank directed banks not to deal with the applicant (Bitfinance (Pvt) Ltd) as the latter’s activities were not only unregulated and illegal, but presented all kinds of risk, including but not limited to fraud, money-laundering, evasion of the country’s exchange, terrorism financing,” it said in an opposition application defending its ban and challenging the interim relief.
RBZ further gave explanation as to why Golix ‘s cryptocurrency exchange was an illegal operation.
The central bank’s interpretation of the Banking Act is that Golix was engaging in banking activities, hence it becomes illegal because they do not have the required licence to operate as such.
Analysts are hopeful that the fight does not extend over to the blockchain technology - the technology which makes cryptocurrencies possible saying there are Zimbabwean companies utilising the technology in some innovative solutions.
