Read in the digest
- The European Union has voted against a proposed ban on Proof-of-Work cryptocurrencies like Bitcoin and Ethereum, sending a jolt at the prices.
- Binance has secured a license to operate in Bahrain while Coinbase (NASDAQ:COIN) volume continues its downward spiral.
- Cryptocurrency trading volumes are in decline in Russia after traditional payment platforms suspend their operations as the wealthy turn to Dubai for a haven.
- Terra’s founder wagers $1 million on the future price of Terra’s (LUNA).
EU Does Not Ban PoW Cryptos + BTC Attempts Recovery
The European Union voted against a proposed plan to ban the mining of Proof-of-Work cryptocurrencies like Bitcoin and Ethereum. The rule was part of the Markets in Crypto Assets (MiCA) framework with the 32 members voting against the proposal while 24 voted against the bill.
The resolution from the vote will see Bitcoin being regulated by the EU Sustainable Taxonomy and no longer the MiCA. Members of the European People’s Party, the European Conservative Party, and the Renew movement formed the bulk of persons that opposed the proposition.
As a result of the highs from the vote, Bitcoin had a small rally to exceed $39,000 but failed to break the 40K resistance level. There is palpable fear amongst investors that if the asset fails to break the mark, it could go downhill from here.
The 1-day price chart of Bitcoin (BTC). Source: CoinMarketCap
Flipsider:
- Short-term holders of the asset are in steep decline and some believe that this might be an indicator of -bearish sentiment.
Why You Should Care
A ban on Bitcoin mining across Europe might be a near-fatal event for the cryptocurrency. Europe is one of the leading continents in terms of BTC usage with a significant number of mining farms in member countries.
Binance Bahrain + Coinbase Volume Dip
The largest cryptocurrency exchange in the world has scored yet another win after it successfully acquired a special crypto-asset service provider license from Bahrain. The license was issued by the country’s central bank and Binance’s CEO hailed the stringent due diligence process adhered to by the Bank.
Bahrain nurses the ambition to become the leading crypto hub in the gulf and the issuance of the license is thought to be a step in the right direction. Khalid Humaidan, CEO of the Bahrain Economic Development Board stated that “Team Bahrain has built a world-class infrastructure to support the fast-growing blockchain and crypto industry.”
While Binance was forging new partnerships, Coinbase’s volume has dropped for the second month in a row. Total trading volume in February was pegged at 93 billion which pales in comparison to the $124 billion that it attained in January with the small number of listed assets seen as a major reason for the decline.
Flipsider:
- Bahrain’s oil-rich neighbors, the UAE have taken significant steps to become the leading crypto hub in the Middle East with FTX winning a license to open a local headquarters in Dubai.
Why You Should Care
Centralized cryptocurrency exchanges are facing a rough patch with regulators clamping on their operations. It is refreshing to see wins coming from countries in the Gulf.
Russian Crypto Volumes Drop (Visa (NYSE:V), Mastercard (NYSE:MA)) +Rus Shift Wealth To Dubai
The ability of Russians to access cryptocurrencies has been significantly impacted after conventional payment platforms like Visa and Mastercard suspended operations in the country. The fall-out is a stark decline in the cryptocurrency trading volumes, especially in Bitcoin and Tether markets.
Plagued by panic, wealthy Russians have turned to Dubai to protect their wealth from the threat of sanctions as Switzerland states that it would adhere to imposed sanctions. High Net Worth Individuals are frantically moving assets including cryptocurrencies with requests exceeding $2 billion each.
Russia has been hit with a slew of sanctions ranging from the ban of the country from the SWIFT network and the refusal of countries to purchase Russian oil. This is in retaliation for the country’s invasion of Ukraine and the experts think that this will cause the Russian economy to shrink by over 5%.
Flipsider:
- Elliptic, a blockchain analytical firm, has found a wallet with significant crypto-asset holdings belonging that might be linked to Russian oligarchs and other sanctioned individuals.
Why You Should Care
The impact of regulations on cryptocurrencies has been evident over the last few weeks with cryptocurrency exchanges complying with the orders of the regulators.
Terra’s Founder’s Bet
Terra’s CEO, Do Kwon has expressed his faith in the valuation of his project by entering into a bet with cryptocurrency trader, Sensei Algod. Kwon bet $1 million that the value of Terra (LUNA) will be higher than $88 in exactly a year.
The funds have been deposited into an escrow wallet belonging to UpOnly podcast host, Jordan Fish. On the other hand, Kwon also accepted $10 million with Giant Rebirth under the same terms but at press time, Giant Rebirth was yet to send his funds to the escrow wallet.
The buzz was raised as a result of claims that Terra is a “Ponzi scheme” because of the usage of LUNA in stabilizing UST. The critics believe that LUNA was at risk of entering a death spiral because of the burning of the asset to maintain the peg of the UST to the US dollar.
Flipsider:
- Despite the claims that Terra is a Ponzi scheme, the asset has soared to become the most staked crypto asset in the world beyond SOL and ETH.
Why You Should Care
Terra is one of the fast-rising blockchains in the world and is widely thought of being an Ethereum killer. Terra is the 7th largest in terms of market cap ahead of Solana, Cardano, and Polkadot.
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