As regulatory agencies in the United States, Europe, and Asia demand more stringent checks on cryptocurrencies and the less volatile digital currency “stable coins”, Bitcoin has fallen below $30,000.
Bitcoin, the world’s largest cryptocurrency, fell 5% to US$29,300, the lowest level since June 22. Investors said they may test the US$28,600 level touched last month, which is the lowest level since the beginning of January. Because it faces various regulatory resistances. Smaller cryptocurrencies such as Ethereum and XRP also fell by about 5%.
On Tuesday, European regulators outlined plans to make cryptocurrencies more traceable as part of the EU’s broader fight against money laundering.
The European Commission stated that companies handling virtual assets such as Bitcoin should comply with anti-money laundering rules and transparency requirements for the transfer of encrypted assets.
For example, companies such as banks that handle cryptocurrency for customers will need to include their name, address, date of birth and account number, and the customer’s name. Anonymous crypto asset wallets will also be banned. These proposals may take two years to become law.
As part of a broader fight against money laundering, the European Commission stated: “Given that virtual asset transfers and wire transfer funds transfer face similar money laundering and terrorist financing risks… Therefore, it seems logical to use the same legislative instrument. Addressing these common problems .”
On Monday, U.S. Treasury Secretary Janet Yellen told regulators that the U.S. government must act quickly to establish a regulatory framework for stablecoins, a rapidly growing digital currency.
A meeting of the top U.S. regulators agreed that stablecoins—a digital currency linked to established currencies such as the U.S. dollar—may become a useful means of payment. However, more supervision is needed to protect stablecoin users and the wider financial system.
“The Secretary of State emphasized the need to act quickly to ensure that an appropriate US regulatory framework is in place,” the Treasury Department report said.
Neil Wilson, a strategist at CMC Markets in London, said that Bitcoin’s price signal is “terrible” and he expects the currency to fall further after being “hit” on Tuesday.
After investors sold off in May and June, Bitcoin has been locked in a relatively narrow trading range in recent weeks China cracks down on cryptocurrency mining and trading.
but Tuesday’s decline brought this month’s decline to about 15%. Since reaching a peak of nearly $65,000 in April, it has fallen by more than half.
Tech entrepreneur and author of “Bitcoin: Unlicensed Gambling”, Bob Seeman (Bob Seeman) stated that the government will start using existing licensing laws to combat what he calls a Bitcoin “Ponzi scheme.”
“I believe that regulation will eventually overwhelm Bitcoin,” he said. “Some governments may soon realize that since every Bitcoin transaction has any connection to the government’s jurisdiction, they have established gambling license requirements to regulate and collect taxes.”
