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The Price Of Bitcoin Has Dropped As A Result Of The Eus Call To Make Transfers Traceable And The Rise Ofstablecoins

Bitcoin has dropped below $30,000 as regulators in the United States, Europe, and Asia seek for tougher controls on cryptocurrencies and “stablecoins,” which are less volatile digital currencies.
Bitcoin, the world’s most popular cryptocurrency, plummeted as much as 5% to $29,300, its lowest level since June 22, and analysts predicted it would test the $28,600 level last month, its lowest since early January, as it faced a slew of legal challenges.
Lesser cryptocurrencies like ether and XRP have also lost roughly 5% of their value.
European officials unveiled proposals on Tuesday to make cryptocurrencies more traceable as part of a broader anti-money-laundering campaign in the union.
Companies handling virtual assets, such as bitcoin, should be subject to anti-money laundering regulations, as well as transparency requirements for crypto asset transfers, according to the European Commission.
A company processing bitcoins for a client, for example, would be required to disclose their name, address, date of birth, and account number, as well as the client’s name.
Anonymous crypto-asset wallets would be prohibited as well.
It could take two years for the ideas to become law.
“Given that virtual assets transfers are exposed to comparable money-laundering and terrorist-financing concerns as wire funds transfers,” the European Commission warned as part of a larger assault on money laundering.
As a result, it becomes rational to employ the same legislative vehicle to address these shared challenges.” US Treasury Secretary Janet Yellen said regulators on Monday that the US government must move fast to establish a legal framework for stablecoins, a rapidly emerging class of digital currencies.
Stablecoins – a sort of digital currency tethered to known currencies such as the US dollar – have the potential to be a useful means of payment, according to a conference of the world’s top regulators.
More regulation, on the other hand, would be required to protect stablecoin users and the financial system as a whole.
“The secretary emphasized the importance of moving promptly to ensure that an appropriate US regulatory framework is in place,” according to the Treasury Department.
The price signals on bitcoin were “horrid,” according to Neil Wilson, a strategist at CMC Markets in London, and he expects the currency to fall further after “taking a battering” on Tuesday.
With a crackdown by China on cryptocurrency mining and trading in May and June, investors sold substantially, Bitcoin has been stuck in a rather tight trading range in recent weeks.
However, the drop on Tuesday brought the month’s losses to about 15%.
Since peaking for about $65,000 in April, it has dropped by more than half.
Governments will begin to employ existing licensing regulations to battle what he calls the bitcoin “Ponzi scam,” according to Bob Seeman, a tech entrepreneur and author of the book Bitcoin: Unlicensed Gambling.
“I believe regulation would eventually suffocate bitcoin,” he said.
“As a result of every bitcoin transaction having any link to the governments jurisdiction, some governments may quickly realize that they already have gaming license requirements in place to control and collect tax.”

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