The crypto spring is being felt more clearly in the crypto market not only with warming outside the window but also with the activation of many investors, who, following Bitcoin, raised the value of most other crypto assets last week. The reasons for the growth have not yet been precisely established, but it can already be assumed that the robotic trading systems have noted an increase in the number of transactions for the purchase of digital assets, which began because of a number of favorable news about the largest projects in the sector. In particular, this was influenced by the outcome of the Deconomy conference, as well as a number of legislative initiatives to regulate the crypto industry adopted in the U.S. and EU.
Binance Is Preparing to Launch New Platforms
We already talked about the readiness of one of the largest crypto exchanges in terms of trading volume to add a margin trading function, as well as plans to increase legal transparency by tightening the KYC procedure. Last week, the head of Binance Changpeng Zhao also shared some good news at once. First, on April 2, he confirmed information about the readiness of a large amount of capital to go into crypto assets, with the result that “everyone will be in the crypto market.” The reason for this is the early transition to the “FOMO” mode (fear of missing out) when those who did not have time to buy at the minimum have concerns that they should buy at any cost, even the most peak one. After all, according to his estimates, there are more assets on exchange accounts in stablecoins than in crypto assets, and the current growth can turn everything upside down.
Secondly, the decentralized trading platform Binance DEX can be officially presented this month. Zhao himself said this during a speech at the conference Deconomy held in Seoul. It is worth noting that the first testing of the DEX by a wide range of users began at the end of February, and the finished product will be presented from week to week. Moreover, this month, we should expect the launch of Binance Singapore crypto exchange. Unlike the parent platform, Binance Singapore will provide an opportunity to make deals not only with pairs against stablecoins but also in fiat.
The Creator of Ethereum Responded to the Criticism from Roubini
A known opponent of cryptocurrencies Nouriel Roubini, or “Doctor Doom” as he is also called, who gained fame in the financial environment for an accurate forecast of the onset of the financial crisis in 2008, met at the South Korean conference Deconomy with the creator of Ethereum Vitalik Buterin. While the crypto community is wondering what changes the expected Istanbul network upgrade will bring in May, a more global question is being discussed at the conference of whether cryptocurrencies will continue to exist under anonymity or they will lose this feature and become a simple update for traditional banking services. Of course, each of the parties remained largely adherent to their opinion although Buterin noted the coincidence of thoughts on the current trend of reducing anonymity in conducting transactions and the danger of seizing control over some projects by mining pools. But the very idea of “privacy of capital” has already entered the minds of ordinary investors so much that it cannot be supplanted entirely, and users will demand its observance. According to the creator of Ethereum, in a few years, fundamental changes will take place in the crypto market, and the industry will look completely different. At the same time, he refuted Roubini’s statement about the completion of the industry’s formation process, which, on the contrary, is gaining momentum.
Digital Assets Are Waiting for Legalization in the U.S.
Last week, bills related to the cryptocurrency market were submitted to the relevant departments of the U.S. Congress. The first legislative initiative is aimed at countering the manipulation of the price of crypto assets in order to prevent damage to ordinary investors. If this bill is approved by the majority of members of Congress, the CFTC should promptly provide a report on potential areas where price manipulation of cryptocurrencies may occur.
The second bill is a logical continuation of the roadmap for regulating the environment of digital currencies approved last December. Approval of the law to improve the competitiveness and regulation of the digital currency market will require the market “wardens,” the SEC and CFTC, to provide an overview of the current norms of international and U.S. legislation in this area. It will also contain materials on licensing the crypto market at the federal level and on the benefits of introducing blockchain technology into the list of trading instruments on commodity exchanges. Both bills are capable of changing the established rules of the game in the market, as well as attracting more investors thanks to understandable conditions and legal transparency.
Also, the SEC intends to seriously review all the legal intricacies regarding cryptocurrency and security tokens, for which it was decided to hire a specialized crypto attorney, and the announcement has already appeared on the hiring portal of American government officials. The new SEC employee will become the link between the regulator and the community, thus helping bring the legislation of the securities market in line with the new realities. The salary of such an employee with at least four years of experience and a compulsory Ph.D. degree in Law will reach $20,000 per month.
SWIFT, Ripple, and IBM Will Determine the Future of Blockchain in Europe
The International Association for Trusted Blockchain Applications (INATBA) began to operate on the territory of the EU, which included such well-known companies as SWIFT, Ripple, and IBM, as well as another 102 representatives of the crypto industry. The primary purpose of the document signed in Brussels was the creation of regulatory standards and the promotion of the idea of introducing blockchain technology into everyday use. This idea was supported by representatives of the European Commission, the World Bank, as well as representatives of the European Investment Bank, which will advise specialists on all emerging issues.
Big Business Gets More Crypto Tools
Last week’s news also brought more specifics about the prospects for the release of the Bakkt platform, which ICE—one of the most liquid and technologically advanced operators of exchanges and clearing houses for financial and commodity markets in the USA, Canada, and Europe—is launching. According to a published progress report, the new management team will be led by Tom Noonan, a prominent cybersecurity entrepreneur.
Also, new products were presented, among which the most significant interest is caused by the custodial service for institutional investors and the launch of trading in deliverable Bitcoin futures. It is worth noting that the latter is still at the development stage, and Bakkt executives have yet announced no exact release date of the project because they will first need to obtain permission for listing on ICE Futures from CFTC. Also, it was noted in the report that the company became a pioneer in this area and its specialists have to “solve equations with unknown variables.”
In previous reviews, it has been repeatedly suggested that the market is preparing for rapid growth, which we have seen in practice. But what is the situation at the moment and is it worth waiting for the further increase in value, according to the signals on the charts?