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Why Are Cryptos Down Today? 7 Things to Know About the Blacklist

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors asking the question, "Why are cryptos down today?" certainly have a big c...

This story originally appeared on InvestorPlace

InvestorPlace - Stock Market News, Stock Advice & Trading Tips - InvestorPlace

Today, some juicy news has shaken the crypto world. Unfortunately, this news is rather bearish for those banking on a truly decentralized future free of government interference. Indeed, with cryptos down today (again), crypto investors appear to be in full-on bear mode, with most major cryptocurrencies seeing double-digit declines from their peaks right now.

A concept image with a bear figuring standing on top of crypto tokens.
Source: Shutterstock

Today’s headline news centers on the U.S. government officially sanctioning a cryptocurrency exchange for the first time ever. The crypto exchange has been singled out by the U.S. government as a bad foreign actor. Accordingly, repercussions will be put in place for those who do business with this exchange moving forward.

Of course, the various high-profile ransomware hacks of late that have hurt the American economy have put crypto’s role in facilitating these attacks on display. President Joe Biden’s administration has stepped up efforts to rein in the ease at which foreign actors can interfere with American infrastructure. Among the most high-profile examples of such hacks has been the Colonial Pipeline shutdown, which dramatically impacted gas prices in the near term on the East Coast.

Let’s dive into a few things investors may want to know about the blacklisting.

Why Are Cryptos Down Today?

  • Sentiment in the crypto sector has remained bearish over the past week, with a sea of red encompassing most cryptocurrencies over the past seven days.
  • Today’s formal blacklisting of the crypto exchange is the latest in a series of events to facilitate this sentiment.
  • The government labeled a “specifically designated national.”
  • This puts the exchange on the same footing as foreign nationals suspected of being terrorists.
  • According to intelligence, Russia-based helped facilitate various ransomware attacks on U.S. soil.
  • Accordingly, the government will sanction any U.S. citizen from using this exchange.
  • Those who fail to heed the government’s sanction could end up with jail time or a fine.
  • Additionally, various crypto addresses were added to the sanctions list as well.
  • It’s estimated that approximately one-third of the transactions that took place on the exchange were related to illicit activities.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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