EU Pursues Deal on Lows to Regulate Crypto
The European Union will try to agree on the basic rules for regulating crypto assets on Thursday. The Bitcoin route pressures the government to take control of the sector. Globally, crypto assets are largely unregulated. EU national operators are only required to control the fight against money laundering. The agreement precedes the EU regulatory package; Issuance of “passport” to crypto asset issuers and related service providers to serve customers across the EU from a single base. Additional rules of capital and consumer protection should also be met.
Industry officials say the clarity of rules and passports could attract crypto firms from rival London. The US and Britain have not yet approved similar laws. Representatives of the European Parliament and EU countries gather to implement the agreement on the law on cryptocurrency markets, which will take effect around the end of 2023. A source involved in the talks said three issues remain: NFT, oversight, and energy consumption.
The deal will likely focus only on including symbol-like NFTs under the MiCA, Authorized and supervised by crypto firms at the Member State level. The European Commission will assess the energy footprint of crypto assets. Firms operating in an EU country will have 18 months to obtain a MiCA license without service interruption. Crypto assets came under pressure after the collapse of TerraUSD and Luna tokens last month. Celsius Network froze funds and transfers this month. Bitcoin fell to about $17,600 in June. It currently trades for around $20,100.
Why Crypto Fails
Global crypto markets are still crashing after yesterday. The global crypto market capitalization in the last 24 hours has fallen to $872 billion. This is 3.71% less than on the previous day. According to analysts, there are several reasons for falling prices in crypto markets. These are: Weak global signs – Cryptocurrency markets reflect the decline in global financial markets. Trading in US stock markets was low on Tuesday. Another reason is the fall of Bitcoin. The BTC weekly RSI reached its all-time low a few weeks ago. Not much could be recovered from there.
Bitcoin trading charts show that the top cryptocurrency closed below the 200-week moving average for the second week. BTC analysts thought it was unusual and hitherto unheard of. Bitcoin’s current weekly MA is about $22,550. While global crypto market capital and coin prices are falling, the market volume has increased by 3.62 in the last 24 hours. This indicates the sale of cryptocurrency by traders.
In addition, the new tax rule in India from tomorrow requires a 1% TDS deduction for every crypto purchase. This rule is expected to hurt India’s crypto trade badly. Many exchanges are still figuring out how to handle the new law. OpenSea, one of the largest global NFT marketers, has announced a data breach. A platform employee found that Customer.io leaked an OpenSea user list on the outside.
Conclusion
At the same time, Coinbase, one of the largest crypto exchanges, sells geo-location data to the US Immigration and Customs Enforcement Agency. According to a CoinDesk report, the shared data is likely to contain details of crypto-users.
Genesis also faces losses of hundreds of millions of dollars due to the impact of the Hong Kong-based cryptocurrency. Reports suggest that various hedge funds are betting against Tether, which is currently the largest Stabilcoin—concerned about stablecoin support and systematic risks. Short positions on the USDT cost hundreds of millions of dollars. Concerns about the systematic risks of the USDT have grown since the TerraUST explosion last month.
