Business News

CCTV Script 28/05/18


— This is the script of CNBC's news report for China's CCTV on May 28, 2018, Monday.

There is no doubt that the criminal investigation initiated by US Department of Justice hits encrypted digital currency market again. According to related information, the emphasis of this investigation is illegal conduct that may affect price, such as spoofing trade, which includes lots of fake orders and makes an illusion of strong demand trapping other traders to buy or sell.

At the same time, insiders revealed that the United States Federal inspectors are cooperating with the US Commodity Futures Trading Commission that is responsible for regulating Bitcoin-related derivatives. Actually, we know that the spoofing trade and other phenomenon are the fraud that US regulatory agency is trying to regulate and to extirpate on stocks, futures and other financial markets for many years; the position from the US Department of Justice means that the regulations will extend to encrypted digital currency market.

That means the attitude of justice department and regulatory agency to digital world is more and more close to the approach that they regulate other markets, some lawyers told to CNBC.

[Crypto trader Ran Neu-Ner] "When they come out with regulation, it's going to open the floodgates for new money to come into crypto . If we want to make this a real asset class, with real people, then let's weed out the bad actors. But the first step is, let's legislate first; let's regulate first. So we know what the playing field looks like."

However, strengthening the regulation on cryptocurrency not only happened in US. Recently, Coincheck, a Japan exchange, also received a notice of rectification from the Japan Financial Services Agency, asking them to delist 3 encrypted digital currencies on the same day; Korea Exchange Korbit also announced that they delisted 5 encrypted digital currencies. Many encrypted digital currencies declined because of the influence of strengthened regulations from some countries, including bitcoin, the forecast of this industry.

Bitcoin's price declined below $7300 dollars on 27th, May after it decreased under $8000 dollars on 23th, May, while bitcoin buoyed a little today morning, offering above $7350 dollars, however, its current price is still floating around the low level in nearly half and a month.

Other major encrypted digital currencies also slumped because of the decline in bitcoin. Till this morning, total market value of global digital currencies has been off nearly $140 billion dollars compared to the start of this month, we will keep an eye on this issue.