Bitcoin reversed the downtrend last week! Bitcoin price is about to move above $31,400 – continuing on a new bullish leg that will take it back into the uptrend channel that it broke out to the downside four weeks ago!
Against the backdrop of global financial markets struggling to overcome the monetary tightening headwinds that strong May US nonfarm payrolls report made little to quell, regulators around the globe focused on building legal safeguards to protect crypto investors from steep losses. Japan`s parliament passed a legal framework around stablecoins to protect investors, while the Basel Committee on Banking Supervision said norms governing banks` exposure to crypto assets will be completed this year. At the same time New York State Senate passed a crypto mining moratorium.
Japan`s parliament passed a legal framework around stablecoins on Friday. The bill clarifies the definition of stablecoins which will now be considered as digital money and must be linked to the yen or another legal tender. Stablecoins can now only be issued by licensed banks, registered money transfer agents and trust companies, guaranteeing holders the right to redeem them at face value. The bill was passed less than two weeks after reports South Korean financial authorities would introduce measures to hold crypto exchanges to greater scrutiny following the implosion of UST and the LUNA token behind it.
The Basel Committee said it plans to publish a consultation paper on crypto banking rules this month, and have the capital requirements for banks with crypto assets this year. Basel Committee on Banking Supervision had proposed rules requiring lenders to hold $1 in capital for each $1 of crypto held last year. Banks had criticized the proposal as overly arduous standard.
The New York State Senate approved a controversial proof-of-work (PoW) mining ban bill that would prohibit new PoW mining for two years. Legislators said they want to conduct a study on the potential environmental impact of proof-of-work mining projects powered by carbon-based fuel in the Empire State. Existing mining firms or ones currently undergoing the permit renewal process would be allowed to continue operations.
