Bitcoin has slipped below $30,000 as calls grew among regulators in the US, Europe and Asia for tighter checks on cryptocurrencies, and the less volatile digi-currency known as stablecoins.<\/p>\n
Bitcoin, the worlds largest cryptocurrency fell as much as 5% to $29,300, its lowest since 22 June, and investors said it was likely to test the $28,600 level touched last month, its lowest since early January, as it faced a variety of regulatory headwinds. Smaller cryptocurrencies such as ether and XRP also lost around 5%.<\/p>\n
On Tuesday, European regulators outlined plans to make cryptocurrencies more traceable as part of a wider crackdown on money-laundering in the bloc.<\/p>\n
The European Commission said companies handling virtual assets, such as bitcoin, should become subject to anti-money laundering rules, along with transparency requirements for transfers of crypto assets.<\/p>\n
For example, a company such as a bank handling cryptocurrencies for a client would be required to include their name, address, date of birth and account number, and the name of the client. Anonymous crypto-asset wallets would also be outlawed. The proposals could take two years to become law.<\/p>\n
Part of a wider crackdown on money laundering, the European Commission said: Given that virtual assets transfers are subject to similar money-laundering and terrorist-financing risks as wire funds transfers ... it therefore appears logical to use the same legislative instrument to address these common issues.<\/p>\n
On Monday, US Treasury secretary, Janet Yellen, told regulators the US government must move quickly to establish a regulatory framework for stablecoins, a rapidly growing class of digital currencies.<\/p>\n
A meeting of the nations top regulators agreed that stablecoins a type of digital currency that is pegged to established currencies such as the US dollar had the potential to be a useful means of payment. However, more regulation would be needed to protect stablecoin users and the wider financial system.<\/p>\n
The secretary underscored the need to act quickly to ensure there is an appropriate US regulatory framework in place, the Treasury reported.<\/p>\n
Neil Wilson, strategist at CMC Markets in London, said the price signals on bitcoin were horrid and he expected the currency to fall further after taking a beating on Tuesday.<\/p>\n
Bitcoin has been locked in a relatively tight trading range in recent weeks, after investors sold heavily in May and June following a crackdown by China on cryptocurrency mining and trading.<\/p>\n
But Tuesdays fall took its losses for the month to around 15%. It has fallen by more than half since hitting a peak of almost $65,000 in April.<\/p>\n
Bob Seeman, a tech entrepreneur and author of the book Bitcoin: Unlicensed Gambling, said governments would begin to use existing licensing laws to combat what he called the bitcoin Ponzi scheme.<\/p>\n
I believe that regulation will eventually overwhelm bitcoin,he said. Some governments may soon realise that they already have gambling license requirements in place to regulate and collect tax as a result of every bitcoin transaction having any connection to the governments jurisdiction.<\/p>\n
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Link: Bitcoin has slipped below $30,000 as calls grew among regulators in the US, Europe and Asia for tighter checks on cryptocurrencies, and the less volatile digi-currency known as stablecoins. Bitcoin, the worlds largest cryptocurrency fell as much as 5% to $29,300, its lowest since 22 June, and investors said it was likely to test the $28,600 level touched last month, its lowest since early January, as it faced a variety of regulatory headwinds. Continue reading
\nBitcoin price slides amid EU call to make transfers traceable, and rise of stablecoins - The Guardian<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"