News

Cryptocurrency law is coming – prepare for a bumpy ride

Published

10 months ago

24 June, 2024

Cryptocurrency law is coming – prepare for a bumpy ride

New legislation from Brussels seeks to put an end to the scams and turmoil that have characterized markets like bitcoin, but few, if any, appear willing to comply.

ANNOUNCEMENT

Key EU regulation for cryptocurrencies will come into force within the week – and it doesn’t appear that any major specialist players have managed to get permission.

The new regime gives operators such as exchanges and wallet providers the chance to apply for a license that will allow them to operate across the bloc.

Brussels has boasted of being the first global jurisdiction to establish rules tailored to the cryptocurrency market, a market that has seen considerable turbulence and manipulation.

But, with the clock ticking, the jury is still out on whether Europe’s Crypto Asset Markets Act, MiCA, heralds a new era for the industry – or will kill it dead.

After passing the law in June 2023, French Finance Minister Bruno Le Maire said the landmark legislation “will prevent the misuse of crypto-assets, while being conducive to innovation to maintain the attractiveness of the EU.”

A few months later, MP Stefan Berger (Germany/European People’s Party) said that the rules “place the European Union at the forefront of the global token economy.”

Many cryptocurrency users have long rejoiced in its freedom from government control, although some acknowledge that regulatory recognition could offer greater credibility and certainty.

As the prospect of financial regulation looms ever closer, the mood in the industry grows more anxious.

Difficult and uncomfortable

“It’s a difficult and uncomfortable time,” Faustine Fleuret, president of the French cryptocurrency lobby group ADAN, told Euronews, citing tough and unclear rules.

This sadness is shared by Marina Markezic, founder of the Brussels-based European Crypto Initiative, who points out that many cryptocurrency companies have not yet told their customers exactly how the law will work.

On June 3, Binance, one of the world’s leading cryptocurrency exchanges, said it will restrict access to unauthorized crypto coins once MiCA takes effect, but others have not been so frank, it said.

“June 30 is one week away and I, as a consumer, still don’t know what will happen,” Markezic said.

A large chunk of MiCA is dedicated to stablecoins: cryptocurrencies that seek to peg their value to other assets, such as the price of gold or the US dollar.

These are the most difficult parts of MiCA and the first to come into force: other provisions, such as trading licenses, will come into force on 30 December.

But there’s still discussion about what the rules actually mean – for example, whether dealing with stablecoins means having to register as a payment service provider, Fleuret says.

Short notice

Worse, Fleuret says, the European Banking Authority (EBA) published its final set of technical standards only last week, giving traders little chance to prepare.

“Less than two weeks before a big, big, brick of the MiCA regulation comes into force, the people who have to comply didn’t even have all the operational details needed to comply,” he said.

“For newcomers it will be much more complicated, perhaps impossible, to be ready by June 30,” he explained, although he admits that existing payment providers may be in a better position.

ANNOUNCEMENT

An EBA spokesperson told Euronews that the EU agency had finalized and published all 18 sets of standards and guidelines ahead of the June 30 deadline.

“The EBA called on the industry to prepare promptly” for the new stablecoin regime and offered a tool for companies to resolve interpretive questions, the spokesperson added.

No approval?

Confirming Fleuret’s analysis, Euronews has not identified any major cryptocurrency players that have been definitively approved by MiCA.

In April, Paolo Ardoino, CEO of stablecoin issuer Tether, said he was “still discussing with the regulator” his concerns about the law. Circle, whose euro-backed stablecoin appears aimed at EU users, announced last year that it had applied for a MiCA license.

With a week to go, neither company has publicly announced that it has won regulatory approval; neither responded to Euronews’ request for comment.

ANNOUNCEMENT

Both Markezic and Fleuret are still positive about some aspects of MiCA, which in particular will allow crypto companies to operate across Europe with a more or less clear framework.

But Fleuret fears the law isn’t suited to smaller players who tend to dominate the space.

“The problem with MiCA is that it is not proportionate,” he said. “If you are a startup looking to launch a market business right now, you should apply the same rules as Société Générale,” a French bank that is also venturing into financial technology.

And, for all the EU’s bluster about promoting innovation, difficult hurdles seem like a feature rather than a bug.

Big technological fears

Those who created MiCA were motivated in part by fears that Facebook might issue its own form of currency, Libra, tied to a basket of major world currencies.

ANNOUNCEMENT

Finance ministers have railed against the idea of a major foreign tech giant creating a currency that could supplant the euro.

Facebook’s project collapsed, partly due to political backlash, but regulators’ fears were confirmed in spring 2023, when Terra, a stablecoin that supposedly held its value against the US dollar, collapsed under market pressure , causing much of the crypto ecosystem to collapse. with it.

The final version of MiCA imposes strict reserve requirements on euro-based stablecoins and a maximum limit of one million daily transactions for others.

But this could be to the detriment of existing agreements, as operators do not always monitor such information, Markezic says.

“Emissions happen globally and before there was no system on how to align, set up or review… how much is emitted within a specific jurisdiction,” he said. “Sometimes issuers don’t know who holds these tokens.”

ANNOUNCEMENT

Some difficult years

Cryptocurrencies have had a rough few years. Following the Moon incident came a period of turbulence and regulatory backlash, and many of the industry’s figureheads are now in prison.

In the United States, Sam Bankman-Fried was recently sentenced to 25 years after pleading not guilty to fraud and money laundering during his time running cryptocurrency exchange FTX.

Likewise Changpeng Zhao, the founder of Binance, was sentenced to four months after pleading guilty to money laundering.

All this may have tarnished the reputation of cryptocurrencies, but Markezic is confident that legal credibility could herald a new era.

Established providers like banks “are waiting for regulation,” he said, with a clear regulation that potentially takes the technology out of its current, slightly nerdy niche.

ANNOUNCEMENT

“I think we’ll talk less about the technology and less about the stablecoins and … more about the utility and what it can bring to the consumer,” he said. “The benefits are numerous when it comes to seamless transactions, 24/7 processes, etc.”

But even she acknowledges that there will be bumps in the road from today’s Wild West to mainstream credibility.

“Many companies will not have the ability to be compliant,” he said. “Very small startups and innovative companies will likely limit their activities in the EU.”

Source

Related Topics:cryptocurrency EU politics European Commission Financial regulation

Up Next

Bitcoin, Binance, Ethereum, Solana and Ripple: the biggest cryptocurrency news of the past week

Don't Miss

Bitcoin could head towards $60,000 if no course correction is seen

FinCrypt Staff

We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

News

Block Investors Need More to Assess Crypto Unit’s Earnings Potential, Analysts Say — TradingView News

Published

9 months ago

11 July, 2024

FinCrypt Staff

DeFi Lending Protocol Nexo Allocates $12 Million for Ecosystem Incentives — TradingView News

Block, a payments technology company led by Jack Dorsey square could become a formidable player in the cryptocurrency mining industry, but Wall Street will need details on profit margins to gauge the positive impact of the business on earnings, analysts said.

Block signed its first large-scale cryptocurrency mining hardware pact on Wednesday, agreeing to supply its chips to bitcoin miner Core Scientific CORZbut no financial details were disclosed.

JP Morgan estimates the deal could net Block between $225 million and $300 million, but said more information will be needed to assess the hardware business’s long-term earnings potential.

“We still have a lot to learn in terms of the margins of this business, so we are hesitant to underwrite this transaction until we know more about the cadence and economics,” J.P. Morgan said.

The deal marks a major step for the payments company, which started out as “Square” in 2009 before rebranding in 2021 in a nod to its focus on crypto and blockchain technologies.

Dorsey, who co-founded and ran Twitter (now known as “X”), has long been bullish on Bitcoin. Block began investing 10% of its monthly gross profit from Bitcoin products into Bitcoin in April.

In the first quarter, nearly 9% of the company’s cash, cash equivalents, and marketable securities consisted of bitcoin.

“This development (the deal with Core Scientific) is further evidence of Block’s role as an emerging leader in the crypto hardware ecosystem,” Macquarie analysts Paul Golding and Emma Liang wrote in a note.

Analysts say similar deals to follow could further validate Block’s reputation in the industry.

But J.P. Morgan said the stock’s performance will be determined by Block’s other segments, such as Square and Cash App.

Block shares have lost nearly 17% this year.

Source

News

This Thursday’s US Consumer Price Index could be a game-changer for cryptocurrencies!

Published

9 months ago

11 July, 2024

FinCrypt Staff

This Thursday's US Consumer Price Index could be a game-changer for cryptocurrencies!

3:30 PM ▪ 4 minute read ▪ by Luc Jose A.

This Thursday, attention will be focused on the United States with the anticipated release of the Consumer Price Index (CPI). This economic indicator could trigger significant movements in the markets, especially for the U.S. dollar and cryptocurrencies. While investors remain vigilant, speculation is rife about the potential impact of these key figures.

The Consumer Price Index: The Cornerstone of the American Economy

The Consumer Price Index (CPI) is a key measure of inflation which reflects changes in the price of goods and services purchased by American households. This index is calculated monthly by the Bureau of Labor Statistics (BLS) and serves as a barometer for the cost of living. The consumer price index covers a wide range of products, including food, clothing, housing, health care, and entertainment. Economists and policy makers closely monitor this data to anticipate economic trends and adjust monetary policies accordingly.

The June CPI data is due to be released this Thursday at 2:30 p.m., and is highly anticipated by investors. The current consensus is for headline annual inflation to decline to 3.1%, from 3.3% the previous month, while core inflation is expected to remain stable at 3.4%.

THE BIGGEST EVENT THIS WEEK 🚨

The U.S. Consumer Price Index is expected to
PUBLICATION TODAY AT 8:30 AM ET.

EXPECTATIONS ARE 3.1% WHILE
LAST MONTH THE CONSUMER PRICE INDEX (CPI) WAS 3.3%

HERE ARE SOME SCENARIOS 👇

1) CPI above 3.1%

THIS WILL BE A DAMAGE TO THE MARKET
GIVEN THAT THE LAST TIME THE CPI DATA… photo.twitter.com/yudjPLPl8g

— Ash Crypto (@Ashcryptoreal) July 11, 2024

Consumer Price Index Release: What Does It Mean for the Dollar and Bitcoin?

Inflation as measured by the consumer price index is a key determinant of the value of the US dollar. If the consumer price index declines more than expected, it could reinforce expectations of a rate cut by the Federal Reserve in September, thus weakening the dollar. A weaker dollar could benefit GBP/USD, which recently broke a major resistance level, and Bitcoin, which could see its price rise due to increased demand from institutional investors.

Current forecasts suggest that headline inflation will decline to 3.1%, with core inflation holding steady at 3.4%. However, a surprise increase in the consumer price index could upset these expectations. Fed Governor Lisa Cook has mentioned the possibility of a soft landing for the economy, with inflation falling without a significant increase in unemployment, which could lead the Fed to consider rate cuts. This outlook is particularly favorable for stock markets and cryptocurrencies, including Bitcoin, which could benefit from a more accommodative monetary policy.

According to experts at 10x Research, especially their CEO Markus Thielen, Bitcoin could see a significant increase if the CPI data confirms a decline in inflation. Thielen indicated that Bitcoin could reach almost $60,000, a prediction that has already been reflected with a rise to $59,350 before the data was released.

Therefore, Thursday’s CPI data could determine the future direction of financial and cryptocurrency markets. High inflation could strengthen the US Dollarwhile a drop in inflation could pave the way for rate cuts by the Fed, thus giving a boost to Bitcoin and other digital assets.

Enhance your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.

Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!

Avatar of Luc Jose A.

Luke Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.

Source

News

Crowd Expects Bitcoin Bounce Suggests Further Losses, As RCO Finance Resists Crash

Published

9 months ago

11 July, 2024

FinCrypt Staff

Crowd Expects Bitcoin Bounce Suggests Further Losses, As RCO Finance Resists Crash

Bitcoin is seeing a rebound after its recent price crash to $53,000. Other altcoins are subsequently recovering, with many cryptocurrency investors increasingly making new entries. However, Santiment warned against this hopium, suggesting that Bitcoin could extend its price losses.

As the broader market anticipates Bitcoin’s next price action, RCO Finance (RCOF) demonstrates resilience, attracting thousands of people in influxes. Read on for more details!

RCO Finance challenges the market crisis

RCO Finance (RCOF) is approaching $1 million in funding raised, amid growing interest from institutional traders seeking stability from Bitcoin’s wild price swings. While much of the broader market has seen significant price losses, RCO Finance has remained resilient, experiencing a surge in its pre-sale orders.

As a result, the project seems oblivious to the current market conditions, leading top market experts to take a deep dive into its ecosystem. They identified why RCO Finance was able to withstand the bearish pressure and its potential to hold up even stronger during the impending broader market crash.

The main reason was related to the innovative use of RCO Finance AI Trading Tools as a Robo Advisor. This tool has been integrated into RCO Finance’s cryptocurrency trading platform, offering full automation and highly accurate market forecasts to help investors make informed decisions.

Read on to learn more about this tool and other exciting features of RCO Finance!

Bitcoin Bounces Amid Impending Crash

Bitcoin is bouncing back, rallying 8% after plunging to its lowest point since February on July 5. While this rebound has triggered a bullish wave in the broader market, many cryptocurrency analysts predict it could be short-lived as Bitcoin is poised for an imminent crash toward the $50,000 zone.

On a Post X (formerly Twitter)Santiment revealed that while the crowd is anticipating a Bitcoin rally, this potential crash could trigger FUD and panic, causing average traders to wither and give up on Bitcoin. The platform noted that Bitcoin rally has historically occurred after these weak hands sold their holdings.

In particular, these cryptocurrency analysts speculate that the previous and upcoming Bitcoin crash is largely the result of bearish market psychology, as opposed to large BTC sell-offs by the German government and Mt. Gox. In particular, Ki Young Ju, founder and CEO of CryptoQuant, noticed that “the sales were rather negligible, given the overall liquidity of Bitcoin.”

Enjoy seamless investing on RCO Finance

RCO Finance is making investing easier and easier, democratizing access to high-level tools and cryptocurrency earnings that were once reserved for professional and institutional investors. It has also prioritized accessibility, allowing investors of all levels to easily navigate its features through its intuitive interface.

Additionally, they can also maintain anonymity and privacy as the platform has no KYC requirements. To build trust, the platform has instead emphasized regular smart contract audits by respected security firm SolidProof.

Performance data shows massive adoption, indicating that it is doing its job effectively. Investors can also capitalize on RCO Finance’s fast transaction speeds and incredibly low transaction fees, with leverage options up to 1000x to further optimize their portfolios and maximize returns.

Leverage RCO Finance’s pre-sale earnings

An in-depth analysis of the RCO Finance ecosystem revealed that it has strong potential to rival and surpass major cryptocurrencies in the cryptocurrency industry. With a very limited total token supply and excellent tokenomics, RCO Finance is poised to reach its target of $1 billion in market cap upon its official launch.

RCO Finance has adopted a deflationary model, strategic burn mechanisms, and a vesting schedule. However, the project encourages long-term holding by focusing on sustained growth through incredibly high staking rewards.

RCOF tokens are currently available at an altcoin price of $0.01275 in progress Pre-sale Phase 1. This is likely the lowest price these coins will ever trade at, as they are expected to increase exponentially with each new presale phase.

With RCOF expected to be $0.4 at launch, investors jumping in now can expect a Return 30x on their investment!

For more information on RCO Finance (RCOF) presale:

Visit RCO Finance Pre-sale

Join the RCO Financial Community

Disclaimer: The statements, views and opinions expressed in this article are solely those of the content provider and do not necessarily represent those of Crypto Reporter. Crypto Reporter is not responsible for the reliability, quality and accuracy of any material in this article. This article is provided for educational purposes only. Crypto Reporter is not responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Do your own research and invest at your own risk.

Source

News

Bitget Ranks Third Among Cryptocurrency Exchanges by Capital Inflows in Q2

Published

9 months ago

11 July, 2024

FinCrypt Staff

Although Bitget is not the largest cryptocurrency exchange in terms of total volumes, it closed a favorable quarter. From April to June, the platform ranked third in net capital inflows and showed the strongest growth in market share compared to its competitors.

In the second quarter, investors moved $700 million into Bitget, and activity on the platform increased by nearly 50%.

The exchange has seen a surge in user funds, with Bitcoin (BTC), Tether (USDT), and Ethereum (ETH) rising 73%, 80%, and 153%, respectively, in the first six months of the year. This growth coincided with adding 2.9 million new users to the platform.

This has positioned Bitget among the top exchanges with the highest positive net inflows in the last quarter. Only Binance, which remains the market leader, and Bitfinex have performed better in this category.

According to CCData’s latest H2 Outlook Report, the exchange also recorded the highest market share growth among centralized exchanges, increasing 38.4% from H2 2023 to H1 2024.

Bitget’s spot trading volume has also seen a visible increase, going from $28 billion in Q1 to $32 billion in Q2, marking an increase of over 10%. The platform’s monthly visitors have reached 10 million. Although its volumes are increasing, Bitget still does not rank among the top 10 cryptocurrency exchanges in terms of spot trading.

The changes taking place in the centralized cryptocurrency exchange market show that competition is becoming more and more intenseAn example of this is the recent surge in popularity of Bybit, which has become the second largest exchange in terms of spot trading volumes.

Sports Sponsorships and New Products

Gracy Chen, Source: LinkedIn

Gracy Chen, CEO of Bitget, commented on the quarterly performance, saying, “Q2 2024 was a pivotal period for Bitget. Our collaboration with Turkish athletes, along with significant growth in users and website traffic, is part of our global expansion.”

In an effort to expand its global presence, Bitget has partnered with three Turkish national athletes as part of its #MakeItCount campaign, starring Lionel Messi. The deal with the famous footballer It was signed in Februaryto build brand presence in Latin America.

The exchange also launched a $20 million TON Ecosystem Fund in partnership with Foresight Ventures to support early-stage projects on The Open Network.

The exchange introduced two new initial token listing products, PoolX and Pre-market, which collectively launched over 100 projects. Additionally, Bitget’s native token, BGB, was recognized as the best-performing centralized exchange token in June and was ranked among the top 10 cryptocurrencies by Forbes.

In its latest move, the cryptocurrency exchange aimed to become a regulated player in IndiaThe announcement comes as the world’s most populous democracy grapples with the complexities of integrating cryptocurrencies into its financial ecosystem.

Even recently,
Bitget Wallet Announced a joint investment with cryptocurrency investment firm Foresight X in Tomarket, a decentralized trading platform. This initiative targets emerging asset classes and aims to expand the portfolio’s services beyond traditional decentralized exchanges (DEXs).

In the second quarter, investors moved $700 million into Bitget, and activity on the platform increased by nearly 50%.

According to CCData’s latest H2 Outlook Report, the exchange also recorded the highest market share growth among centralized exchanges, increasing 38.4% from H2 2023 to H1 2024.

The changes taking place in the centralized cryptocurrency exchange market show that competition is becoming increasingly intenseAn example of this is the recent surge in popularity of Bybit, which has become the second largest exchange in terms of spot trading volumes.

Sports Sponsorships and New Products

Gracy Chen, Source: LinkedIn

The exchange also launched a $20 million TON Ecosystem Fund in partnership with Foresight Ventures to support early-stage projects on The Open Network.

Source