Bitcoin and Ethereum Markets Still Maintain an Uptrend but Drop Due to Regulatory ICO Concerns Worldwide
Bitcoin reached new highs last week which proves that the decentralized currency can do it once again. However, after briefly touching the $5K per BTC price range, there's been a lot of sell off since then. This has led to smaller cryptocurrencies such as Ethereum losing value by the wayside as well. Overall both currencies are still outperforming every fiat currency on the planet and exchange over $3.8B in 24-hour trade volume on a typical day. Even though the price of BTC and ETH is low exchanges everywhere extremely busy handling the current cryptocurrency fever taking place worldwide.
Coinmama’s Weekly Roundup
China Bans Initial Coin Offerings (ICO)
Probably the biggest news this week came from China’s central bank, the Peoples Bank of China, banning ICOs. Last week there were rumors and speculation concerning the bank looking down at these types of crowdfunds. Now the central bank is calling token sales “unlawful” and is expecting some startups to refund investors. This news shook up cryptocurrency markets everywhere including bitcoin, but most notably Ethereum was hit the most as it's the number one producer of the latest swarm of digital asset ICOs. The banning of ICOs comes at a time when the business model is being scrutinized by governments everywhere most notably by the U.S. Securities and Exchange Commission.
Israel Considers ICO Regulation
This week the head of the Israeli Securities Authority (ISA) revealed the country needed to establish regulatory standards for ICOs. The ISA will form a committee that will research and determine if ICOs meet the country’s current finance legislation. The working group will evaluate ICO fundraising, compare the tokens to the legitimacy of bitcoin, deciding on whether or not regulators need to keep a closer eye on this market. Again, Israel becomes one of many nation states looking deeper into how initial coin offerings work and seem to think the business model needs stricter regulation.
India’s Central Bank Looks Towards Blockchain Finance
According to reports, India’s central bank is creating a working group involved with a blockchain application. The Institute for Development and Research in Banking Technology (IDRBT) explains they will be launching a blockchain pilot in the near future but have not disclosed what the distributed ledger project will do. IDRBT director A. S. Ramasastri explains, "We will be launching this platform very soon." According to sources familiar with the matter, the technology will work with specialized bank-to-bank systems currently in place.
Russia Is Getting Extremely Close to Drafting Bitcoin Legislation
The Russian Duma's financial markets committee leader, Anatoly Aksakov, explained this week that government officials are steadily working on this type of legislation. "If we agree on the main approaches in the coming week, I think that by autumn, by the end of the fall session, we will be able to adopt this law in order to provide a legal space for the development of this market," explained Aksakov. This means Russia may favor bitcoin in its laws and citizens from the country will be able to freely benefit from the decentralized currency.
Overall bitcoin markets are still doing quite well and have performed phenomenally since the beginning of the year. This week’s dip has been following a consistent back and forth rise and dip before rising once again higher than before. Coinmama will surely be watching these trends closely and keep our readers informed every step of the way.
Coinmama’s weekly review is always on a mission to find the very best topics of interest being discussed within the digital currency space. Follow us here every week to keep up-to-date with current events concerning Bitcoin, Ethereum, and blockchain technology innovation.