(MARKETWATCH) – Bitcoin and major digital currencies were in free fall Friday with most coins shedding as much as 10%, wiping billions off the market cap of cryptocurrencies.
Bitcoin, the worlds biggest digital currency, is trading back at multimonth lows as ongoing exchange flaws continue to undermine the integrity of the market. The overnight news that Japan's financial watchdog has hit six exchanges with orders to improve business follows two exchange hacks in the past eleven days, which saw $70 million of cryptocurrency seized.
"It's critical that exchanges deploy top-notch security as it's stricken confidence from the market," said Naeem Aslam, chief market analyst at Think Markets. "It's beyond ridiculous, and I think regulators should increase pressure on exchanges with regards to security."
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Aslam said that the hacks were doing severe damage to the reputation of both bitcoin and blockchain.