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September 20, 2018

How financial regulatory authorities are reacting to Cryptocurrency markets?

Cryptocurrency Market Outlook - Cryptos need regulators to step up.

cryptocurrency-regulation-license cryptocurrency-regulation-license

The Australian Securities & Investments Commission (ASIC) is currently making steps to protect investors from the very popular ICOs which are raising significant amounts of capital.

In Australia, ICOs are not developed as much as other countries but the Australian authorities are seemingly looking to regulate the subject before getting out of control.

They have made it clear that misleading ICOs targeting the general public will be penalized and so the regulator has already acted against several events of this type.

Very correctly, it was said ICOs are highly speculative investment projects and if someone is to be involved in raising money from the public, that person should be aware that he is under the supervision of legal bodies and authorities.

The crypto Industry, even though growing in demand and interest, still remains highly unregulated in various parts of the world, and has a long way to go when referring to reliability of investments.

Lately, in Japan a new formed cryptocurrency exchange was victim of cyber theft with coins amounting to $59.7M, going missing. Most of the Coins stolen belonged to clients and a smaller portion belonged to the firm.

More specifically Japanese startup Tech Bureau Corp said its exchange Zaif had been digitally robbed. Cyber theft has taken place for the second time in Japan.

The first time was at the start of the year with Coincheck Inc. losing half a billion USD worth of cryptos. These kind of events hurt the industry very much, but also ring the alarm for regulatory bodies indicating some action must be taken immediately.

These dangers were acknowledged previously but have not been dealt with appropriately and so they resurface taking us back to where we started. Cryptos have been decreasing in value due to these exact reasons, and yet only minor measures have been implemented.

However, according to Reuters some action has been affirmed by two Wall Street regulators in New York.

It was announced that a series of actions, including imposing fines, against companies involved with cryptocurrencies in an attempt to monitor the popular and unregulated asset class.

Securities regulators have increased their inspection of the emerging asset class, remarking that some tokens may be considered securities, which would make their issuance, sale and trading subject to federal laws.

Yet, the SEC has not classified which coins are regarded as securities. Heavy fines, and penalties have taken place already and people who have acted with financial misconduct, have been publicly noted.

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On the other hand, New York state department of Financial Services has approved Gemini Trust Company’s and Paxos Trust Company’s dollar-linked digital currencies.

Most noted is the fact that these are the first stablecoin to be approved from the regulator.

The Gemini dollar by Gemini, the digital asset exchange, is a stablecoin that will allow users to send and receive U.S. dollars through the Ethereum blockchain.

The coin is pegged to the U.S. dollar on a one-to-one basis.

In addition, PNC Financial Services Group Inc. has announced it will use technology built by startup Ripple to process international payments in one of its divisions.

Ripple is amid the most well-known startups that builds blockchain technology but also uses a cryptocurrency called XRP, of which it holds a large share of.

The news is welcomed for XRP holders adding to the very positive side of crypto fundamentals, which is so vitally needed.

XRP/USD 1 Hour chart

XRP/USD traded higher after the positive fundamental news released in the previous days and mentioned in our analysis above.

The digital coin could gain some upward momentum in the following days as it has been in a downfall for some months now.

If Investors decide to purchase the crypto currency we could see it breaking the 0.36828 (R1) resistance level and move even higher breaching the 0.3936 (S1) resistance barrier.

On the flip side, if the digital coin follows a sideways movement we may see it move between the 0.3628(R1) resistance level and the 0.3425 (S1) support area.

Should the market favor the crypto currency’s short position we may see it head for the 0.3425 (S1) support level and breach it, aiming for the 0.3219 (S2) support area.

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