Does the FinTech Law Benefit the Cryptocurrency Market in Mexico?

Leonardo Perez
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Does the FinTech Law Benefit the Cryptocurrency Market in Mexico?

The Law to regulate Financial Technology Institutions or Fintech Law allows cryptocurrencies through sandboxes or “novel models.” Experts point out that there is no list published by Banxico where it authorizes the operation of cryptocurrencies and the central bank “has the last word.” Bitso reported that $2.1 million was sent on its platform in the first three quarters of 2022 for cross-border payments alone.

The Law to regulate Financial Technology Institutions or Fintech Law of Mexico came into force in March 2018 since then, seeking to regulate innovative financial services and promote competition. It is applicable for companies that offer crowdfunding services, loans, digital transfers and cryptocurrencies.

The Mexican Fintech Law was a pioneer in the region in establishing a clear legal framework for collective financing institutions, electronic payment fund institutions and companies authorized to operate with innovative models. The latter allows the provision of service through a sandbox that allows the experimentation of “new” financial modalities to the existing ones.

Fintech Law: They See “Unclear” Regulatory Framework towards Cryptocurrencies in Mexico

Months ago, tech firm Legal Paradox founder, Carlos Valderrama, explained that there were more than eight requests for innovative models via sandbox to experiment with digital currencies, but they have not been attended to. Therefore, there is no optimal legal framework in the country that allows financial solutions with technologies such as blockchain.

Article 16 of the Fintech Law stipulates that FinTech or startups may carry out operations with virtual assets, but must be subject to the terms and conditions of Banxico. Meanwhile, article 22 establishes that electronic payment fund institutions must inform the National Banking and Securities Commission (CNBV) when they receive digital assets.

Banxico Has Not Allowed the Legal Operation of Cryptocurrencies in Mexico

Companies are compelled to comply with regulator monitoring, as well as additional obligations such as files, corrective actions, guarantee actions, among others. Likewise, they must have corporate governance, and must report to financial authorities.

Carlos Valderrama explained that “there is a lack of will” on the part of financial authorities to develop experimental or sandbox schemes that allow the controlled circulation of cryptocurrencies. The Law to regulate Financial Technology Institutions could only operate with virtual assets that are determined by Banxico.

Experts have pointed out that Mexico’s Fintech Law has solid bases to regulate the use of cryptocurrencies. The founding partner of BlackBox, Víctor Aguirre, explained that there is no list published by Banxico authorizing the operation of cryptocurrencies. The “push” from the central bank would be decisive for the ecosystem.

Fintech Law: Remittances and Salaries, the Largest Use of Cryptocurrencies in Mexico

Article 30 (chapter III) of the Fintech Law maintains that Banxico is the only one authorized to establish deadlines, terms and conditions for the operation of virtual assets. Meanwhile, platforms that operate virtual assets are required to have all of the client’s funds, ready to be withdrawn when the user determines.

In addition, article 105 shows that Banxico would determine as “serious conduct” for a platform to use clients’ money, electronic payment funds or virtual assets for purposes other than those agreed upon. In short, the business model of a large part of the cryptocurrency exchanges in Mexico would be unviable.

The Mexican exchange indicated that in the first three quarters of 2022, more than $2.1 million were sent through the platform, for cross-border payments. Additionally, it launched its “best practices” regulatory principles for the industry.

By Leonardo Pérez

These Politicians Defend Bitcoin and Cryptocurrencies in the US

Audy Castañeda
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These Politicians Defend Bitcoin and Cryptocurrencies in the US

Given the confrontation of many crypto platforms with the US financial police, a number of politicians have emerged willing to defend Bitcoin and other crypto assets.

In Bitcoin we trust! In the United States, the tone is set. For several months now, many platforms, Coinbase or even Binance, to name only the most emblematic, periodically confront the US Securities and Exchange Commission. Regulatory pressure is such that these companies are considering, under duress, leaving Uncle Sam’s country for more lenient jurisdictions.

However, there are men and women in the US political landscape. who defend the cause of Bitcoin and crypto assets. Whether they are exposed to the front of the media stage or act more discreetly within regulatory bodies, everyone tries in their own way to defend cryptocurrencies on American soil. Below, it is found out who they are and what their specific actions are in favor of the ecosystem.

Robert Kennedy Jr., Bitcoin to Protect Americans Against Inflation

Although mainly known for his commitment to the environment and public health, Robert Kennedy Jr. has expressed his support for Bitcoin and cryptocurrencies as a means of hedging against inflation.

His stance in favor of cryptoassets is based on their decentralized nature and the potential of these virtual currencies to serve as a refuge in times of economic uncertainty. He proposed re-indexing the dollar with gold and Bitcoin. Additionally, JFK’s nephew wants to eliminate taxes on capital gains made with bitcoin if he is elected to the White House.

Ted Cruz, Stimulating the American Economy Thanks to Cryptocurrencies

The Texas senator has stood out as an advocate for technological innovation and balanced regulation in the cryptocurrency space. Cruz has repeatedly expressed his support for blockchain technology and digital assets, highlighting their potential to boost the American economy and create new opportunities for entrepreneurs and investors.

In 2022, Ted Cruz reiterated his support for Bitcoin and, more specifically, mining, which he wants to facilitate in his state, Texas.

Francis Suarez, Miami at the Crypto Ecosystem Center

Miami mayor quickly established himself as a pioneer in the integration of cryptocurrencies and blockchain technology into the urban fabric. The councilor even receives his salary in bitcoins. With a vision firmly focused on the future, Suárez seeks to make Miami a true center of innovation. As well as a paradise for businesses related to cryptocurrencies.

One of Suárez’s signature initiatives is his proposal to allow citizens to pay their taxes and government fees in Bitcoin. By collaborating with entrepreneurs and investors in the sector, he has demonstrated his desire to establish successful partnerships and foster innovation.

Cynthia Lummis, the Voice of Reason

Senator Cynthia Lummis of the state of Wyoming is an iconic figure in promoting Bitcoin within the US government. She was elected in 2020 and is committed to raising awareness among her colleagues about Bitcoin’s potential as a store of value.

She has repeatedly expressed that Bitcoin can serve as a hedge against inflation and as a means to diversify financial portfolios. His leadership role on the task force aims to help develop regulations that support innovation while protecting consumers.

Eric Adams, a Crypto Center in New York

Elected mayor of New York in 2021, Eric Adams has shown a clear interest in exploring the possibilities offered by blockchain technology and cryptocurrencies. In 2022, the New York State Assembly imposed a two-year moratorium on crypto businesses in order to study the environmental impact of this activity.

By Audy Castaneda

CBW 2023: High Performance Bitcoin Mining

Leonardo Perez
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CBW 2023: High Performance Bitcoin Mining

The Bitcoin mining business also had a notable presence at CBW 2023, with numerous firms exhibiting their innovations.

During CriptoTendencia’s coverage at the Caracas Blockchain Week at UCAB, a large participation of mining firms was observed. In this way, CBW 2023 had a notable presence from the Bitcoin mining industry of the South American country.

Among the variety of proposals, there was one related to the immersion mining process or submersible mining. This way of carrying out the business is one of the most striking thanks to its notable advantages when compared to the traditional way.

Generally, digital mining works through air cooling, that is, with fans. But this process entails some problems and constant operating costs that can affect companies’ income. Hence, the move to immersion is one of the boldest and most radical ways to cut costs and can make the difference between bankruptcy and survival during bear markets.

Bitcoin Mining at CBW 2023

During this Friday’s event at CBW 2023, Bitcoin mining was discussed among the forums and there were many companies in the stands showing their progress. In that context, the automatic cut of miner rewards will occur next year. This makes all eyes focus on this industry that is key to the very existence of BTC.

Thus, the halving means that miners will receive 50% less than what they receive now. Under such conditions, the technique of immersion of mining equipment in dielectric oil becomes important.

Marlon Rojas, CEO of one of the companies present at the activity stands, commented that the advantages of immersion are numerous. “One of the big problems that the mining industry has had since its beginnings is that the machines produce heat and it is difficult to control it,” he commented. He added that temperature control helps with energy efficiency.

The life span of ASICs tends to be between approximately 4 and 6 years. However, with the immersion technique, this time can be considerably prolonged. On the other hand, miners save constant costs such as maintenance and repairs.

With all this, it can be said that Bitcoin mining was one of the elements that is taken most seriously during CBW 2023.

Is Bitcoin Dead?

Mariel Lang, creator of the Trade It Simple academy, addressed this issue from a much broader perspective that involves the uses of Bitcoin, the derivatives market and even the psychology of the trader. The well-known trader pointed out that it depends on the objective, and especially on the psychological preparation of whoever is interested in market analysis.

As a closing and teaching given by the renowned strategist, the key is the direction of capital, the more capital enters or leaves the market, the more pronounced the fall or rise in price will be.

The Business Problem in Venezuela

In mid-March, the authorities of the Caribbean country announced the surprise arrests of dozens of people for a terrible case of corruption. Among those detained were senior officials from the state oil company PDVSA and the superintendence of crypto assets and related activities (Sunacrip). The result is that the authorities announced a total freeze of digital mining throughout the country to carry out investigations. Since then, mining companies have been ordered to stop activities.

The different representatives of Bitcoin mining who were at CBW 2023 agreed that this measure causes damage to their businesses. Likewise, they expressed their hopes that the measures will be lifted soon to continue operating in a business that is legally established in the country.

By Leonardo Pérez

CZ Fortune Shrinks $11.9 Billion as Binance Revenue Falls 38%, And Other News

Audy Castañeda
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CZ Fortune Shrinks $11.9 Billion as Binance Revenue Falls 38%, And Other News

CZ faces an $11.9 billion drop in his personal wealth due to a 38% decline in Binance revenue.

Binance founder Changpeng “CZ” Zhao has seen a notable decline in his fortune, estimated at around $11.9 billion. This, as the revenue of the world’s largest cryptocurrency platform has fallen by 38%. This data comes from the Bloomberg Billionaires Index, which has been monitoring the finances of CZ and other influential leaders in the cryptocurrency space.

Binance founder CZ’s fortune has reduced his net worth to about $17.2 billion, as reported by Bloomberg on Friday. It is relevant to note that at the beginning of 2022, his wealth reached an impressive maximum of $96 billion, as documented by Bloomberg. This drastic drop highlights the characteristic volatility of the cryptocurrency market and how it can substantially affect the valuation of fortunes linked to this industry.

US Lawmakers Ask the Justice Department to Investigate Binance and Tether for Allegedly Funding Hamas

US lawmakers called on the Department of Justice to continue an investigation into Binance and Tether to determine whether these cryptocurrency companies facilitate financing for Hamas.

In a joint letter, Senator Cynthia Lummis (R-WY) and Representative French Hill (R-AR) urged the Department of Justice to “make a charging decision on Binance that reflects its level of culpability. And, quickly conclude the ongoing investigations into illicit activities related to Tether.”

This request comes in the wake of a Wall Street Journal report that alleged Hamas had used Binance accounts and Tether’s USDT stablecoin to finance its attack on Israel earlier this month. Blockchain data company Elliptic later denied the WSJ’s information, claiming it was inaccurate.

Taiwan Moves Forward in Digital Asset Regulation with Bill Presented

Taiwan has taken a significant step in the direction of digital asset regulation by submitting a cryptocurrency bill to the Legislative Yuan for its first reading.

The bill, called “Virtual Asset Management Ordinance,” aims to define virtual assets. Establish operational standards for entities working with these assets, ensure customer protection, and require membership in industry associations and obtaining regulatory permits.

So far, Taiwan had maintained a relatively hands-off and laissez-faire approach to the cryptocurrency sector. Applying regulations solely in line with existing know-your-customer and anti-money laundering laws.

Max Keizer and Stacy Herbert, Close to Obtaining Salvadoran Nationality in Their Support of Bitcoinization

Recently, it was announced that Max Keiser, a prominent figure in the world of Bitcoin, and his partner Stacy Herbert, are about to obtain Salvadoran nationality. This represents a significant step in their support for Bitcoin adoption in El Salvador.

After two years of effort and dedication, it seems that Max Keizer and Stacy Herbert are about to achieve their goal of obtaining Salvadoran citizenship. Confirmation of this progress comes from a publication by the government of El Salvador in English, which recalls a crucial moment in its process.

On December 8, 2021, El Salvador’s ambassador to the United States, Milena Mayorga, shared a video that captured the moment Max Keiser and Stacy Herbert delivered the necessary documentation to begin the process of obtaining their Salvadoran citizenship. This gesture symbolizes his constant commitment to the nation and his support for the Salvadoran president’s vision of granting citizenship to those who invest in the country. Especially Bitcoin enthusiasts.

By Audy Castaneda

Bitcoin Season: Leading the Charge in the Crypto Market

Leonardo Perez
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Bitcoin Season: Leading the Charge in the Crypto Market

Bitcoin price gains of 3% lead cryptocurrency markets higher.

Bitcoin’s dominance over the rest of the digital currencies continues to expand during recent days in the crypto market. The current rally in the price of the queen cryptocurrency is leading to an expansion of its power against altcoins. In this last group, some managed to maintain a firm pace, but the vast majority could not withstand the pressure of a market with few investors.

The fact that investors are still not sure what is going to happen with the SEC is cause for great caution. However, the enthusiasm is such among retailers that the price of BTC is gaining strength and stands at 100% positive performance so far in 2023.

Over the past month, the price of Bitcoin has seen a significant increase. Its price has increased by 30%, reaching a new yearly high of $35,000, 10% above its previous high this year. Interestingly, while Bitcoin’s growth is evident, the broader cryptocurrency market has failed to keep up.

Altcoin Market Capitalization

The Altcoin market capitalization, which is the total market capitalization of cryptocurrencies excluding Bitcoin, has been trading within a descending triangle. This pattern, characterized by its lower highs and equal lows, often indicates a bearish trend in the market, which suggests that sellers are gradually outpacing buyers.

A breakout of this pattern is usually seen as a bullish indicator, with the target being the first peak. In this case, the Altcoin market capitalization would potentially see another 15% increase, matching April’s yearly highs. A similar pattern was observed in the previous cycle, where the Altcoin market capitalization was trading within a falling wedge.

After the breakout, the Altcoin market capitalization saw a 90% increase. These historical trends show the importance of closely monitoring these patterns as potential indicators of market changes.

On the contrary, as the Altcoin market capitalization is reaching lower highs, the Bitcoin price is reaching new yearly highs. This dynamic suggests that Bitcoin is gaining market share against the rest of the cryptocurrency market. This is often referred to as “Bitcoin Season.”

Bitcoin Season

Bitcoin’s market share is 54%, the highest in more than two years. The last time Bitcoin’s market share was at this level was during the 2021 bull market. As that year progressed, the asset began to lose market share as investors turned their attention to coins with lower capitalization, attracted by the prospect of higher returns. Now the trend appears to be reversing. Investors are gravitating back to Bitcoin, attracted by its higher returns than the rest of the cryptocurrency market.

The next resistance is at 58%, so if Bitcoin breaks this mark, it will gain an additional 5% in market share. Historical trends have shown that in the initial phases of bull markets, Bitcoin often takes the lead, as it moves forward to create new all-time highs. This is typically driven through Bitcoin-centric narratives such as the halving, which reduces the new supply of Bitcoin being mined.

This year, increased anticipation surrounds the possible approval of a Bitcoin ETF. If approved, it could pave the way for a wider range of investors to interact with the asset.

Even during the dominant ‘Bitcoin Season’, certain Altcoins have managed to show even more impressive performances. Some notable ones are as follows: Injective: +74% Solana: +68% PEPE: +67% YIELD: +45% Chainlink: +45% Investment

By Leonardo Pérez

Bitcoin’s Meteoric Rise: Analysts Predict BTC Could Soar to $45,000 in November

Audy Castañeda
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Bitcoin’s Meteoric Rise: Analysts Predict BTC Could Soar to $45,000 in November

According to the analyst, November will pave the way for a plausible rise of BTC above the $45,000 mark.

As Bitcoin (BTC) continues its bullish trajectory throughout the week, the cryptocurrency market is abuzz with speculation about its next milestone. According to a comprehensive analysis by leading financial analyst CryptoCon, Bitcoin is poised to reach a significant threshold of $45,000 in November, building on insights from previous market cycles. CryptoCon shared these insights in a series of posts on X, shedding light on the complexities of Fibonacci retracement levels.

Bitcoin Could Reach $45,000 in November

Even though Bitcoin hit a 17-month high this week, market expectations suggest a possible pullback. However, the crypto analyst remained firm in the belief that BTC has substantial room for bullish growth, noting that hitting $45 next month is possible for the digital asset.

By juxtaposing current price behavior with historical patterns, the analyst highlighted the potential for BTC/USD to surpass the highest point within the Fibonacci model, signifying a mid-cycle peak. He further noted that of the five predetermined targets, Bitcoin has already surpassed four, with the fourth target being just a marginal 3.3% above the recent high of $36,368.

According to him, November is now marked as the critical time to complete the next phase, paving the way for a plausible rise of Bitcoin above the $45,000 mark.

“Welcome to phase 4 of the medium cycle. This is the time when #Bitcoin is on the way to the upper mid-cycle, which is now around 45.5k. The price has typically surpassed this. Interestingly, when phase 2 ends, it’s usually a direct launch to phase 5, which means 45k could be coming soon. (little green arrows),” he said.

Rekt Capital Accountant Analyst Projection

While CryptoCon believes BTC is on track to hit another high since the market winter last year, it mentioned that breaking two key resistance levels is imperative for Bitcoin enthusiasts to realize this ambitious goal.

In response to this optimistic outlook, another expert, Rekt Capital, accentuated the deviation of Bitcoin’s current behavior compared to the analogous period in 2020, pointing out a contrasting trend in support and resistance dynamics. In several recent X posts, Rekt Capital said that “Any deeper retrace that occurs over the next 175 days before the Halving will represent an outsized opportunity for the next few years”

Parallel to these projections, market sentiments remain optimistic, with other analysts, including Crypto Jeb, projecting a substantial rally in Bitcoin, foreseeing a possible rise to over $70,000 by the end of next year. Earlier this year, financial services company Standard Chartered Bank suggested an optimistic projection in July, indicating a possible rise to $120,000 by the end of 2024.

Furthermore, Matrixport, another company, anticipated that BTC could go parabolic after the US Securities and Exchange Commission (SEC) has approved a potential Bitcoin spot exchange-traded fund (ETF) next year. The company projected that the crypto asset could reach $125,000 by December 2024.

Meanwhile, some experts consider that the movements are being “somewhat exaggerated” and that the market is selling the bear’s skin before hunting it. Manuel Villegas, digital asset analyst at Swiss bank Julius Baer, ​​recalls that, despite the latest increases, “the possible approval does not take away the fact that network activity has been largely silenced, as evidenced by the counts. transactions and address activity.”

By Audy Castaneda

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