UK Government Releases Regulatory Framework for Crypto Assets and Stablecoins to Prevent FTX 2.0

Leonardo Perez
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UK Government Releases Regulatory Framework for Crypto Assets and Stablecoins to Prevent FTX 2.0

The United Kingdom proposed measures on crypto assets and stablecoins in response to the FTX and Alameda Research failure that affected both retail and institutional investors.

Following the collapse of Terra Luna and FTX last year, UK policymakers have committed to introducing a new regulatory regime for crypto assets and stablecoins to ensure sustainable and secure widespread adoption. Last year, UK policymakers worked closely with different financial institutions and other stakeholders in formulating detailed regulatory frameworks for crypto assets and stablecoins.

According to CryptoUK, the trade body formed to represent the digital assets sector in the UK, HM Treasury’s (HMT) recent publication on the future financial services regulatory regime for crypto assets, which was in response to the initial consultation on the management of the Systemic Digital Settlement Assets failure, has provided a clear overview of fiat-backed stablecoins.

Additionally, the country has seen notable demand for fiat-backed stablecoins to reduce the high transaction cost associated with traditional payments.

The Bank of England (BoE) and the Financial Conduct Authority (FCA) on Stablecoins

With the digital pound as the bigger picture, the Bank of England (BoE), working closely with the Financial Conduct Authority (FCA), published a regulatory approach to the stablecoin market and asked the public to provide feedback. Notably, the BoE and FCA have set until February 6, 2024 for the public and respective crypto players to provide their opinions on the proposed regulations for stablecoins.

According to Sheldon Mills, executive director of consumer and competition at the FCA, stablecoins have proven essential in facilitating faster and cheaper payments. Mills added that there has been notable demand from institutional investors looking to offer stablecoins in a regulated manner, making his comments crucial:

“We look forward to continuing our engagement with the government, our partners, and the broader crypto industry as we go, moving forward with the Government’s first phase in developing the UK’s crypto regulatory regime and beyond,” Mills said.

Sarah Breeden, deputy governor for financial stability at the Bank of England, echoed similar sentiments, adding that stablecoin regulatory proposals aim to support safe innovation and ensure public trust.

Regulation of stablecoins is the first step towards broader regulation of crypto assets, the FCA said. The discussion paper detailed possible use cases for stablecoins in the retail and wholesale arena. Their discussion included auditing and reporting, the support of coins owned by the issuer, and the independence of the custodian of the supporting assets.

The paper focused on ways in which the “same risk, same regulatory outcome” principle could be applied. He proposed using the existing client asset regime as a basis for rules on redemption and custody, and the rule source book of senior management arrangements and controls to organize business affairs. There are existing operational resilience and financial crime prevention frameworks, as well as numerous others.

Market Outlook

With more than 31 million cryptocurrency users in Europe, the United Kingdom wants to take advantage of nascent blockchain technology to develop its economy. Furthermore, rising inflation has caused the Central Bank to increase its interest rate amid the ongoing Russian invasion of Ukraine, which has undoubtedly impacted the UK’s economic growth prospects.

Meanwhile, the ongoing crypto regulatory phase in the UK will provide a clear picture for traditional banks and web3 projects to work together. Additionally, some financial institutions led by Chase Bank UK have already banned cryptocurrency-related transactions since the the last few months.

By Leonardo Pérez

Ethereum Targets $2000, But There Are Some Obstacles

Audy Castañeda
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Ethereum Targets $2000, But There Are Some Obstacles

Analysis of a whale’s transactions in the past few hours showed that a large amount of ETH left the Binance exchange.

ETH has a bullish market structure on the daily chart. Resistance above $2000 combined with the liquidation levels heatmap findings showed that a reversal was possible.

Ethereum [ETH] has rallied strongly in the last three weeks and gained close to 25% in three weeks. The news that Hong Kong is considering allowing exchange-traded funds (ETFs) that invest directly in cryptocurrencies like ETH boosted investor sentiment.

Analysis of a whale’s transactions in the past few hours showed that a large amount of ETH left the Binance exchange. Was this a sign that smart whales continued to accumulate ETH?

$2000 Psychological Level Could Reject Bulls Once Again

On the one-day chart, the market structure and momentum were firmly bullish. The RSI was at 74 to reflect the same, and breakeven volume has been trending up since mid-October. This underlined the fact that the purchasing volume has been much higher than the sales volume in the last three weeks.

To the north, the next levels of interest were at $2,039 and $2,141, which marked the July and April highs respectively. A look at the one-week ETH price chart revealed that $1940-$2140 was a severe resistance zone and has been since May 2022.

Therefore, an immediate breakout beyond this zone was less likely to occur. of higher time frame resistance, which meant that ETH lower price holders could lock in their profits and wait for the next move.

Vast Liquidity Pool at $2,070 Was an Attractive Bullish Target

The Hyblock liquidation levels heat map highlighted two areas that could be critical for long-term investors. The first was the $2070 mark which coincided with a resistance zone from the previous technical analysis. A move just above $2070 to liquidate these positions could be followed by a reversal.

The next major accumulation of liquidations occurred below the lows established in recent months at $1,485. Therefore, a revisit to the $1,500 area would probably be a juicy buying opportunity.

The coin’s average age of 180 days continued an uptrend as ETH prices rose. This showed that holders have not yet started selling their ETH en masse. The idle circulation metric also did not see a notable increase in recent days, reinforcing this idea.

On the other hand, the MVRV ratio rose to highs not seen since July, meaning that profit-taking activity could soon kick in and initiate a reversal. For that reason, ETH bulls can lock in their profits and wait for the market to show where it is headed next.

What’s Next for the ETH Price?

In the past few hours, Ether attempted to break through the immediate resistance level of $1,900 due to bullish efforts, only to be rejected by the bearish resistance, showing significant sell-offs at higher prices. Currently, the ETH price is trading at $1,896, declining over 0.3% in the last 24 hours.

The next move for the bears would be to try to push the price down towards the solid support mark of $1,860. If the price recovers from this level, ETH price may break above the upper trend line. In such scenario the price could be consolidating around $1,983-$2,024.

On the contrary, if the bulls fail to defend the $1,860 level, the ETH price could drop sharply. Thus, the price of ETH could hover around $1,747 for a while. If sellers continue to dominate, ETH price could witness another decline, stabilizing around $1,670.

By Audy Castaneda

Ethereum Long-Term Bullish Crossover Imminent, What the Signal Means

Leonardo Perez
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Ethereum Long-Term Bullish Crossover Imminent, What the Signal Means

Ethereum price has reached higher and higher lows throughout 2023 and since its low in June 2022.

Ethereum sentiment is at extreme lows despite the ongoing recovery in the cryptocurrency market. Controversy continues to prevent major altcoins from joining the fun.

However, a rising tide lifts all boats, and Bitcoin’s breakout might have been enough to revive Ether, albeit later than other currencies. The recent surge has been enough to put the top-ranked altcoin on the cusp of a long-term bullish crossover. This is what the sign means.

Ethereum Prepares LMACD Bullish Monthly Cross

Ethereum price has made higher and higher lows throughout 2023 and since its low in June 2022. Nearly 18 months later, ETHUSD is primed for a bullish crossover of the 1M LMACD, the logarithmic version of the divergence indicator and moving average convergence. This version of the tool is used to better compare historical price movements with current price action.

A bullish crossover represents a major momentum shift, made even more powerful because the crossover takes place right at the zero line of the indicator. Moving above the zero-line acts as a secondary signal, showing that momentum has strengthened towards bullish territory.

Such crossover in the past has led to a sustained bull market for Ether and altcoins, especially the DeFi space. The last bullish crossover appeared in May 2020 and lasted until a bearish crossover in January 2022 sparked a long crypto winter.

Domino Effect Could Trigger Triangle Breakout and Revisit ATHs

The bullish crossover on the LMACD is not confirmed, but a breakout of the 1-month On-Balance Volume (OBV) indicator could hint at the final outcome. OBV is called a “smart money” indicator, capable of helping traders detect moves early by tracking subtle changes in volume. All of these signals point to a possible breakout of the ascending triangle pattern that ETHUSD has been trading in for almost 18 months.

The chart pattern objective projects Ethereum price to hit all-time highs again, making a breakout especially significant. If Ether joins the current bullish price action alongside Bitcoin and other altcoins, it could provide the increased breadth needed for a spectacular cryptocurrency bull run.

Ethereum Weekly Forecast

According to a Forbes article, Ethereum is valued not only as a cryptocurrency but also for its smart contract infrastructure and its role in decentralized finance (DeFi). Experts believe Ethereum could reach a valuation of $40,000 by 2030, supported by its unique model, extensive market strategies, scalability solutions, and its leadership in decentralized applications.

As for more immediate predictions, Changelly suggests that Ethereum price could rise 4.45% and reach $1,940.53 in the week of November 6, 2023. Technical indicators show an 84% bullish market sentiment for Ethereum, while the Fear and Greed Index shows a score of 68 (Greed).

In the dynamic world of cryptocurrencies, Ethereum, the second largest cryptocurrency by market capitalization, is at the center of many debates and analyses. With impressive price movements and growing institutional interest, it is crucial to understand the current trends and forecasts that could shape the future of Ethereum.

Ethereum has seen an impressive recovery in recent weeks, with the price rising from $1,527 to a high of $1,867, an increase of 22.6%. Despite this positive performance, Ethereum faces challenges as Bitcoin struggles to break above $35,000, leading to increased selling pressure across the cryptocurrency market. This has stalled ETH’s recovery around the $1,800 mark and raised questions about an impending correction.

By Leonardo Pérez

According to US Senator Cynthia Lummis, the SEC Is “Overreaching” in Cryptocurrencies

Audy Castañeda
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According to US Senator Cynthia Lummis, the SEC Is “Overreaching” in Cryptocurrencies

Wyoming Senator Cynthia Lummis has pointed out that the SEC’s policies are going overboard and overreaching on cryptocurrencies.

US Senator Cynthia Lummis is not a supporter of the Securities and Exchange Commission’s (SEC) crackdown on the cryptocurrency industry. For this reason, she has now promised to help block one of the agency’s new and controversial policies against crypto assets.

“I think the SEC is overstepping its bounds.” Lummis expressed during an interview conducted on Thursday with the media “Yahoo Finance.”

Notably, the SEC is in the midst of an aggressive effort to curb the crypto industry on several fronts, through numerous lawsuits against several large players in the sector, including the exchanges Coinbase and Binance.

Likewise, one of the SEC policies that has affected the crypto industry was published in March 2022 under the name “Staff Accounting Bulletin 121” and requires that any financial company that maintains its clients’ crypto assets must have them. on their own balance sheets, while warning investors about the risks of safeguarding such crypto assets.

However, the US Government Accountability Office (GAO) noted this week that the SEC “should have sent this policy guidance to Congress for approval.”

Furthermore, Lummis has promised in the interview to prevent said SEC bulletin from becoming binding, citing it as another example of “overreach” by the SEC.

According to the US senator, she may be able to gain support for this effort in the coming weeks in the Senate and House. Additionally, Lummis has said that the SEC bulletin could harm consumers if a digital asset custodian “collapses.”

“They are not common-sense rules.” Lummis expressed. “It was published as a staff bulletin, but the bulletin is binding,” she added.

Cynthia Lummis Advances Her Regulatory Clarity Project

Lummis also added that she is working on “other fronts,” to bring more clarity to the crypto industry. This, through extensive cryptocurrency legislation, co-sponsored with Senator “Kirsten Gillibrand”, which would describe how the sector should be properly regulated.

Additionally, Lummis indicated that she is hopeful that her legislation can be approved in early 2024 and is open to including it in other legislative packages.

In fact, that happened in recent weeks, when a portion of Lummis’ bill, dealing with terrorist financing through cryptocurrencies, was included in the US Senate’s defense spending package.

“It is something that is clearly necessary, as illustrated by concerns that Hamas is using cryptocurrency to help finance its savage treatment of Israeli civilians.” Lummis expressed.

Support to New Regulations

Lummis expressed that she also supports the cryptocurrency regulatory framework of the House Financial Services Committee, led by its chairman, “Patrick McHenry.”

“Senator Gillibrand and I see the small differences between the House and Senate versions related to Stablecoins and know they can be resolved.” Lummis expressed. “So, I think we’re going to be able to reach a resolution on Stablecoins now that the House has a new president and they’re open to negotiating again,” she added.

Lummis has been working with McHenry on her bill, to put in place a project to provide regulatory clarity on Stablecoins. Finally, Lummis thinks they can work out “small differences” and maybe they can publish something “before the end of the year.”

By Audy Castaneda

This Is the Only Thing That Could Kill Bitcoin (BTC)

Leonardo Perez
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This Is the Only Thing That Could Kill Bitcoin (BTC)

Arthur Hayes warns that institutional custody can transform Bitcoin from a tool of financial freedom to an institutional asset. Institutional interests and those of Bitcoin ETFs could lead to hoarding, turning Bitcoin into a stagnant asset rather than a circulating currency. Despite the bullish market sentiment driven by institutional interest, Hayes’ narrative urges investors to consider the long-term implications on the essence of BTC.

As Bitcoin (BTC) continues to thrive, reaching new heights every year and gaining widespread adoption, Arthur Hayes, former CEO of BitMEX, expressed a concern that it could potentially strangle Bitcoin’s defining essence.

Hayes’ speech sheds light on a scenario in which institutional custody of Bitcoin could transform it from a tool of financial freedom to an institutionalized asset, thus derailing its original promise.

Institutional Interest: Bitcoin’s Real Killer

The ethos of Bitcoin since its inception has been decentralization, a financial system that operates without any centralized authority. It is in stark contrast to financial systems, which Hayes described as money “that is here for us, the people.”

However, growing institutional interest, especially the possible approval of spot Bitcoin ETFs (exchange-traded funds), could be a double-edged sword.

Hayes, in a recent conversation, laid out a rather bleak scenario. He speculated on the repercussions if financial moguls like BlackRock CEO Larry Fink and their ilk decide to grab a large chunk of free-flowing Bitcoin. This action could transform Bitcoin from a tool of financial freedom to simply another asset under institutional control. The core of the concern lies in how these institutional giants could potentially control Bitcoin, changing its fundamental use case.

Hayes noted that if entities like BlackRock and Fidelity come into play by launching Bitcoin mining ETFs, it would be as if they became “agents of the state,” a stark contradiction to what Bitcoin represents. In Hayes’ opinion, the State’s agenda to keep citizens within the trust banking system for tax purposes could find a new ally in these institutional entities.

If these institutions accumulate Bitcoin in ETF vehicles, the very essence of Bitcoin (being a decentralized and usable currency) is lost. “You can’t actually use Bitcoin. It is a financial asset. It is not Bitcoin itself,” Hayes explained in such a scenario.

Additionally, Hayes warned that if an entity like the BlackRock ETF grows too much, it could “kill Bitcoin.” The hoarded Bitcoin would become a stagnant asset rather than a currency in circulation. This, he argued, is trading “a sugar high today for a calamity tomorrow.”

Institutional Capital Will Drive the Bitcoin (BTC) Bull Market

The crux of Hayes’ argument is that Bitcoin’s main strength lies in its decentralized nature. However, institutional adoption, especially the possible approval of Bitcoin spot ETFs, may be a precursor to Bitcoin losing its essence.

On the contrary, it is undeniable that the influx of institutional interest generates bullish sentiment in the cryptocurrency market. Rachel Lin, CEO of DEX SynFuture, believes Bitcoin could skyrocket to nearly $50,000 by the end of the month, given historical trends.

“Last week cemented October’s reputation as Uptober, and Bitcoin witnessed a nearly 29% increase in value. Even more interesting is that when we look at the data, November tends to be even better than October, with an average return of over 35% in Bitcoin. If this November saw similar returns, we could see BTC reach $47,000.”

The options data also reveals bullish sentiment in the market. Big bets are being made, anticipating that Bitcoin will reach higher values ​​in the near future.

By Leonardo Pérez

Behind the 2% Increase and How It Influences Ethereum NFTs Value

Audy Castañeda
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Behind the 2% Increase and How It Influences Ethereum NFTs Value

The decline in Ethereum NFTs was not only a reflection of the typical pattern seen with many fleeting trends, but also a testament to the crypto market’s changing nature.

Ethereum (ETH) NFTs, which had previously seen a significant rise in popularity, had recently seen a decline in attention as the fervor surrounding the digital asset began to subside. As the hype around NFTs began to die down, Ethereum, the prominent platform that had fostered the growth of these digital collectibles, saw a correlated drop in activity.

However, the recent resurgence in daily ETH NFT volume has raised new hopes for the future of this sector. An analysis of current data indicates a slight but notable increase in trading activity for Ethereum-based NFTs, pointing to a possible revival of interest in this digital asset class.

The driving force behind this revitalization appears to be the introduction of an innovative marketplace by Yuga Labs, a well-known player in the blockchain and NFT space.

Yuga Labs and Magic Eden Join Forces

In an official announcement posted on X, Yuga Labs revealed an exciting collaboration with Magic Eden, announcing the launch of the Magic Eden ETH market. This platform stands out not only for its technological advancements but also for its commitment to honoring creator royalties, a feature that is sure to attract artists and creators eager to protect their intellectual property rights.

The post on X reads as follows:

“Planting something new for all creators.

We’re partnering with Magic Eden to launch the new Magic Eden ETH marketplace – the first major ETH marketplace contractually obligated to honor creator royalties.

The marketplace will launch end of 2023, more details soon.”

This new market, which will reshape the ETH NFT landscape, has already begun to make waves, as evidenced by the recent increase in sales volume and transactional activities related to Ethereum-based NFTs.

Over the course of last week alone, the daily sales volume of ETH NFT witnessed an impressive 8% increase, while the total number of transactions increased by over 10%.

At the same time, the community of sellers and buyers within the ETH NFT ecosystem expanded by 13% and 20% respectively, indicating renewed interest and participation in this digital asset market.

With the launch of the Magic Eden ETH marketplace, these positive metrics have the potential to serve as a catalyst for a broader resurgence in demand for Ethereum-based NFTs, breathing new life into this once dormant sector.

Ethereum: Altcoin Resilience Amid Market Turbulence

As events unfold within the Ethereum NFT sphere, the broader cryptocurrency market has also seen notable changes in recent days. The rise in Ethereum price, as indicated by its current value of $1,873.21 according to CoinGecko, along with a 5.3% increase over the past week, suggests renewed bullish sentiment towards the second-largest cryptocurrency by market cap.

This positive momentum aligns with the general trend seen across the altcoin market, which has shown strong resilience following the recent release of US jobs data.

Rekt Capital posted on X that “Altcoin Market Cap approaching its first major Weekly resistance (red) after confirming a breakout from its year-long market structure.”

Rekt Capital’s announcement presents a strong argument for an imminent uptrend. Despite certain uncertainties surrounding the global economy, the resilience exhibited by the altcoin market signifies growing investor confidence in the long-term potential of cryptocurrencies and blockchain technology.

By Audy Castaneda

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