An introduction of new formed laws to shield anti money laundering activities.
An introduction of new formed laws to shield anti money laundering activities within the European Union passed on Monday which are strongly related to the crypto market.
These laws were announced after a period of 2 years of talks in an attempt to strengthen the controls in place to identify and prevent fraudulent activities.
Sources noted that these activities took place in countries like Malta, Latvia and Estonia and that these new laws aim to identify real ownership of businesses and the people behind digital payments which of course have also used cryptocurrencies.
Some argue, that these laws could be outdated due to the rapid changing circumstances in the finance world, at a time when scams and criminals are finding more efficient ways to move money across borders.
Furthermore, the new laws, bring out a more centralized banking system in order for national security to be aware of the events happening behind the scenes were most deception takes place.
In our opinion, banks and central banks are making the necessary moves to promote security and fairness within the finance industry and some improvement has been noticed.
However, to reach the required level of compliance with laws, strong cooperation must be enacted between the banks and centralized institutions that must act as watch dogs, however is not the case currently.
News from China sited that Yuan denominated Bitcoin trading has been reduced to below 1 percent on a global scale.
This event was a chain reaction to China’s decision to close the nation’s cryptocurrency exchanges last year.
China’s decision to disable traders of bitcoin trading may have saved Chinese citizens a huge disappointment since the digital currency has lost more than 65% of its value since February.
It was also the correct move as crypto theft has increased to alarming levels especially in Asia, and it is now a very common headline in the news, shockingly.
Most of the trading is now done in Japan which accounts for approximately 44% of world bitcoin trading.
Furthermore, and based on a separate study, Initial Coin Offerings (ICO) have proved, that they do not have the endurance to keep their sales growing in the long-term.
The study which is based on more than 2000 ICOs has found that over 50% of these coins are basically worthless after 3-4 months and that most money generated on these coins comes on the first days of trading which is logical, as the excitement and promotions prevail in investor’s psychology.
Then again, this is not the case always for all crypto’s, but market participants should be aware of the chances they take and do their homework prior to investing.
On another front, Ethereum co-founder has come out publicly supporting that Blockchain based wallet could revolutionize the crypto market as it will act as the user’s personal bank.
A very significant part of his statement was that they aim to decentralize information.
If they are able to decentralize information they are making it difficult for cyber theft to take place.
As a conclusion, we would like to mention the most dominating aspect of cryptocurrencies at the moment.
Fears of continuous extreme volatility is perhaps the biggest obstacle to consider cryptocurrencies as you would regular currencies.
Regular currencies offer a more stable value which acts more as a security of value.
Why would someone use a specific currency if the value of it could be a lot lesser the next day or the following week?
Bitcoin has been moving in a sideways movement since the 2 nd of July between the $6,700 (R1) resistance level and the $6,100 (S1) support level.
Both the pre mentioned levels have shown to be very strong and been tested various times.
If the market is overtaken by a bearish movement, we may see Bitcoin moving downwards breaking the $6,100 (S1) support level and aiming for the $5,700 (S2) support barrier.
On the other hand, if the Cryptocurrency is over-bought we could see it aiming for the $6,700 (R1) resistance level and stabilize above that level.
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