South Korea’s top financial regulator has issued guidelines clarifying when non-fungible tokens (NFTs) are considered virtual assets. This distinction aims to minimize the risk of widespread user harm. The guidelines will be part of the Virtual Asset User Protection Act, effective July 19, 2024. FSC Issues New NFT Classification Guidelines On Monday, South Korea’s top […]
Bitcoin News
Why Bitcoin’s Post-Halving Rally Is Certain, Analyst Explains
Bitcoin experienced a price decline of 3.06% on Friday, falling as low as ,372.36 based on data from CoinMarketCap. With the crypto market leader now in a consolidation phase, a trading analyst with X username Titan of Crypto has expressed resilient faith in Bitcoin’s ability to produce a post-halving price rally.
Bitcoin Rise Inevitable, Analyst Pinpoints 0,000 Price Target
In a series of X posts on Friday, Titan of Crypto shared some interesting bullish predictions on the Bitcoin market. Firstly, the analyst noted that amidst BTC’s price decline, the token’s price pattern on the daily timeframe had formed a bullish signal.
Titan of Crypto referred to this signal as the bullish engulfing candle which occurs when a larger bullish candle completely emerges from the previous smaller bearish candle, thus indicating a potential reversal from a downtrend to an uptrend.
Following these observations, the analyst also predicted Bitcoin to soon experience a massive post-halving price gain. Titan of Crypto described this forecast as “inevitable” citing data from Bitcoin’s price history.
The crypto analyst said:
To understand the present you have to search in the past. And what the past is telling us is there is no occurrence of #BTC not having a rally after the halving.
Titan of Crypto also acknowledged that short-term price movements may be “confusing” however he expects BTC to maintain an upward trajectory in the long room. Based on previous post-halving rallies, Titan of Crypto predicts Bitcoin to trade at 0,000 in 2025.
BTC Close To Bottom Price As Dip Buy Interest Drops
In other news, blockchain analytics website Santiment also predicts the recent downturn in Bitcoin’s price could soon end stating the token is near a “bottom” i.e. the lowest point in a market fall at which price stops falling and starts rising exponentially.
Interestingly, this prediction by Santiment is based on a decline in the dip-buying activity of Bitcoin investors. The analytics platform reports that the trading interest in Bitcoin following its most recent decline on Friday is far below levels associated with previous price falls.
At the time of writing, Bitcoin continues to trade around ,968, with an overall price loss of 3.26% in the last week. On the monthly chart, the digital coin also remains in the red zone, reflecting a decline of .64%. However, Bitcoin’s daily trading volume remains positive by 9.73% and .88 billion.
US Judge Backs SEC: Trading of Certain Cryptocurrencies on Secondary Markets Are Securities Transactions
A U.S. district judge has sided with the Securities and Exchange Commission (SEC) in a ruling that declares the trading of certain crypto assets on secondary markets to be securities transactions. This decision emerged from an insider trading case involving crypto exchange Coinbase’s former product manager Ishan Wahi, his brother Nikhil Wahi, and their friend […]
Bitcoin News
Bankrupt Crypto Lender Celsius Reopens Withdrawals for Certain Custody Clients
The now-inoperative crypto lending firm Celsius has announced the opening of withdrawals for select “Eligible Custody Users,” as declared in a recent statement on Wednesday. These custody account holders now have the opportunity to withdraw approximately 72% of their cryptocurrency assets, with the deadline set for February 28, 2024.
Celsius Announces Limited Withdrawal Window for Eligible Users
On Wednesday, Celsius communicated that certain customers have been granted withdrawal rights following court approval of the company’s restructuring plan. The decision comes after Celsius sought Chapter 11 bankruptcy protection on July 13, 2022, a month subsequent to the suspension of withdrawals. Now, “Eligible Custody Users” are permitted to access their funds.
The company’s official X page stated, “Beginning today, additional withdrawals for Eligible Custody Users are now available. Please note that the only assets currently available for withdrawal are certain Custody Assets; all other cryptocurrency remains unavailable for withdrawal at this time.”
This segment of custody clients originates from two separate groups of claimants, who have until February 28, 2024, to execute their withdrawals. Handling of other clients, including those who opposed Celsius’ restructuring plans, will occur over the forthcoming six months. Participants in the current withdrawal process will receive slightly more than 72% of their crypto assets, according to the docket provided by Stretto, a bankruptcy case filings management company.
As per the latest update on November 24, 2023, on Claims Market, bids for Celsius claims are at .38 on the dollar. In comparison, FTX claims in that specific bankruptcy case are fetching .57 on the dollar through Claims Market. Furthermore, Celsius has advised its eligible clients on social media to expedite the withdrawal of their cryptocurrency assets before the window of opportunity lapses.
The company emphasized on Wednesday, “We strongly encourage you to withdraw these assets from the Celsius app and take personal records of information you may find useful immediately, as the Celsius app will only be available for a limited time.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Aave Protocol Halts Certain Market Operations Due To Bug Report
Decentralized finance (DeFi) platform Aave has suspended operations in a number of markets after receiving a problem report on a certain function of the protocol.
DeFi Protocol Discovers Vulnerability; Is User Funds At Risk?
On Saturday, November 4, decentralized lending protocol Aave announced – via a post on X (formerly Twitter) that it has paused the Aave V2 Ethereum market and suspended certain assets on Avalanche. In addition, the protocol has frozen specific assets on Aave V3 on Polygon, Arbitrum, and Optimism.
Today we received a report of an issue on a certain feature of the Aave Protocol. After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk):
— Aave (@aave) November 4, 2023
According to the protocol’s announcement, these actions serve as a temporary precautionary measure following a problem report on a specific feature.
Furthermore, Aave said in the post that the Aave V3 markets on Ethereum, Base, and Metis and the V2 markets on Polygon and Avalanche are unaffected. Meanwhile, no funds on any of the markets were at risk, according to DeFi lending protocol.
![]()
On 11-04 17:38:35 UTC, Aave Guardian has taken necessary protection measurements to pause AaveV2 protocol (and all Aave pools are safe): https://t.co/3xJzfiejig
Given the protocol is “forked” by multiple third parties and the exact details are not disclosed yet, it is… pic.twitter.com/OkO1EZv6pW
— PeckShield Inc. (@peckshield) November 4, 2023
While Aave did not specify what the issue is or the feature that caused the problem, the protocol said it would release a detailed explanation once there is a full resolution. The statement read:
A governance proposal to restore the normal operation of the protocols will be submitted shortly. A detailed postmortem will be released once the issue is fully resolved.
Aave further clarified that users supplying or borrowing from a frozen assets pool can still withdraw and repay positions. However, these users can’t supply or borrow more funds from the frozen assets pool until the issue is resolved. The protocol added:
On paused assets, no action can be done until unpaused.
AAVE Price Remains Steady Despite Protocol Vulnerability
There is no evidence to suggest that the problem has had any impact on the value of the protocol’s native token, AAVE. As of this writing, the token is valued at .15, reflecting a negligible 0.9% price dip in the past 24 hours.
Nevertheless, the token is outperforming on a bigger timeframe. Over the past week, AAVE’s price has swelled by more than 10%, touching the 0 mark – for the first time since February – at some point during the week.
Although the price of AAVE has been moving mostly sideways in the past few days, a resolution of the current issue might trigger renewed momentum for the token. Hence, there is a chance that the cryptocurrency might revisit 0 again, especially considering the optimistic climate of the crypto market.
Bitcoin ETFs Can Boost ‘Overall Reputation of Certain Cryptocurrencies’ — Brighty App Co-Founder
According to Nikolay Denisenko, the co-founder and CTO of the financial and earning application Brighty App, the digital version of the pound sterling can be a bridge that enables “easy conversions between different types of crypto, stablecoins, and digital currencies.” Furthermore, the digital pound — also known as britcoin — can potentially “make payments faster, more secure, and less expensive.”
The Digital Pound’s Benefits Versus Its Vulnerabilities
Nikolay Denisenko, a Revolut alumnus, nevertheless warned that britcoin just like any other central bank digital currency (CBDC) may be susceptible to cyberattacks. He also highlighted the public’s concerns over the digital pound project’s rumoured cost of .31 billion versus the benefits which the CBDC is expected to bring.
Meanwhile, when asked about the probability of the U.S. Securities and Exchange Commission (SEC) approving asset management giant Blackrock’s Bitcoin exchange-traded funds (ETF), Denisenko highlighted Blackrock CEO Larry Fink’s profile and influence as one of the reasons why many players in the crypto space are optimistic. The CTO also argued that when Blackrock and other asset managers’ Bitcoin ETFs are approved, this could result in a “lasting impact on the overall reputation of certain cryptocurrencies and digital assets.”
Also, in his answers to questions sent to him via Linkedin, the Brighty App co-founder also shared his thoughts on what he thinks about Blackrock and other asset managers’ choice of Coinbase as their surveillance-sharing partner. He also detailed some of the things fintech startups and residents in the U.K. need to consider now that the crypto and stablecoin rules have received royal assent.
Below are Denisenko’s written responses to the questions sent.
Bitcoin.com News (BCN): Do you see the United Kingdom as one of the places that will benefit from the United States’ crackdown on crypto — the so-called Operation Chokepoint 2.0?
Nikolay Denisenko (ND): I don’t want to raise any of the conspiracy theories we’ve heard recently about Operation Chokepoint. It’s still too early to know exactly how the U.S. crackdown on cryptocurrencies will turn out. In the U.K., we’ve already seen some big crypto companies rise and the government actively teaching people about the risks of crypto investments. This fact shows that the U.K. is trying to encourage innovation in finance while also protecting consumers and preventing financial crimes.
The vision of the U.K. government is to have an advanced financial system that supports sustainable and open financial services. They’re trying to create a good environment for crypto businesses and investors without stopping innovation. That’s why the U.K. could be a good place for people who want to explore opportunities in the crypto world.
As the U.S. is making its regulations stricter, some crypto companies and investors might look for other countries to work in. The U.K. has a growing crypto community, and the government supports that: a fact that could be attractive to talented people, investments, and businesses globally.
But it’s important to know that we can’t be certain about the impact of the U.S. crackdown and how the U.K. will respond. It could change over time. The U.K.’s success in benefiting from these changes will depend on having good regulations, government support, and bringing in and keeping talented people and investments in the long term.
BCN: In your opinion, how does the adoption of the digital pound change payment habits?
ND: It depends on many factors, but if the digital pound becomes widely used, it could bring about some significant changes in how we make payments.
First, it would connect different digital currencies. The digital pound can bridge various forms of digital money, allowing easy conversions between different types of crypto, stablecoins, and digital currencies, which would make using and exchanging different digital assets much simpler and more convenient.
Second, one of the most exciting possibilities of the digital pound is that it could revolutionize cross-border payments. Instead of relying on traditional systems like the Society for Worldwide Interbank Financial Telecommunication (SWIFT), using the digital pound for international transactions could make payments faster, more secure, and less expensive. It would be a major improvement for anyone sending or receiving money across borders.
And third, It might gradually reduce the reliance on the U.S. dollar and give the British pound a stronger position. This shift could have implications for global finance and trade.
BCN: Why does Britcoin face criticism?
ND: Everything is pretty straightforward here and revolves around privacy, security, cost, and adoption concerns.
As Britcoin is a centralized currency, the Bank of England would have full control over it, including transaction tracking. This raises serious privacy concerns. Further, digital currencies are vulnerable to cyberattacks. If Britcoin were to be hacked, it could have a significant impact on the U.K. economy.
In terms of costs, the Bank of England estimated that it would cost .31 billion (£1 billion) to develop and implement Britcoin. Some people believe that this is too expensive, especially given the potential risks involved — which could also affect adoption, where it is not clear how many people would actually use Britcoin. Some people believe that it is too similar to existing digital currencies, such as Bitcoin, and that it will not be widely adopted.
BCN: After the UK’s crypto and stablecoin rules received royal assent, what do crypto fintechs and customers now need to consider?
ND: The royal assent on the U.K.’s crypto and stablecoin rules marks a significant regulatory shift for the crypto industry, impacting both crypto fintech firms and their customers.
First and foremost, the new rules assist in a comprehensive regulatory landscape extending beyond just stablecoins. Therefore, fintech firms must ensure that they are completely compliant with these laws. There would be tighter controls on crypto asset promotions, implying that companies may need to reassess their marketing approaches to adhere to the law. Any communication that could qualify as a financial promotion must maintain certain criteria. Finally, Fintech companies outside the U.K. must register with the Financial Conduct Authority (FCA).
On the customer side, there are a few key things to consider. Although the regulation of crypto assets is aimed at consumer protection, it also underscores the inherent risks associated with such investments. Customers must fully grasp these risks before committing to their capital. Before engaging with a crypto asset provider, customers would be looking to confirm whether the provider is FCA registered, as it provides an extra layer of protection.
While these regulatory changes bring new challenges for fintechs and their customers, they also open up opportunities.
BCN: How do you feel about the U.K. fintech ecosystem and the current position of Revolut in it?
ND: Regarding the current position of Revolut, it is difficult to give an unbiased assessment of the situation. I myself used to work for Revolut, and I know many of the people there. I know that the individuals who work at Revolut are very dedicated and driven.
I think that the U.K. tech ecosystem can be characterized by innovation, being future-oriented, and being full of “people who are really motivated.”
Revolut’s position in the U.K. tech ecosystem has been one of significant growth and ambition. They have attracted millions of customers and expanded their product offerings rapidly. Their pursuit of a banking license shows their desire to expand further. However, this rapid growth has also brought challenges. One key challenge for Revolut seems to be aligning its operational capabilities with its remarkable growth.
If Revolut’s application for a banking license is rejected again, it would likely impact its current expansion strategy. They may need to reevaluate their business model or explore alternative avenues for growth.
This situation serves as a reminder to the fintech sector about the importance of sound financial controls and regulatory compliance. While rapid growth is desirable, it should not come at the expense of accounting accuracy and adherence to regulations. To that end, Brighty App entered the U.K. market, offering GBP payments and transfers via Faster Payment System (FPS). Funds in GBP are already available to thousands of British customers of Brighty App, which should offer more stability than some of its competitors.”
Revolut, on the other hand, could view it as an opportunity to address operational weaknesses, strengthen accounting practices, and enhance its compliance frameworks. By taking corrective measures, they can overcome the challenges they face and continue to grow and innovate in the U.K. tech ecosystem.
BCN: While the crypto industry has had a rough year so far, there is a growing feeling that the approval of Blackrock and others’ Bitcoin exchange-traded funds (ETFs) will set the tone for a better ending to 2023. In your opinion, how much of a factor are the ETFs, and do you foresee the Gary Gensler-led U.S. Securities and Exchange Commission (SEC) actually approving these?
ND: While it is still not 100% certain that the SEC will approve those ETFs, it seems highly likely that this will happen. The final state of the approved ETFs will most likely include a set of features that essentially turn cryptocurrencies (or other digital assets) into “big investment firm commodities,” meaning that whatever the final ETF product will look like, it won’t have much to do with defi.
These ETFs are a big factor… and the involvement of Blackrock — the world’s largest asset manager by far — is an even bigger factor.
I remember that an acquaintance of mine who worked in the “traditional” asset management industry once said that there is this story among industry veterans. It says that the only person in the world who can get an ad-hoc appointment with any head of state or head of government is Larry Fink, the CEO of Blackrock.
I also think that it is enough to look at Fink’s CEO letters that he writes every year or his wholehearted endorsement of environmental, social, and governance (ESG) ratings. No matter the overall industry sentiment, when the CEO of Blackrock says something, the industry and the economy as a whole listen. (That includes the people who regulate and supervise the industry.)
If big asset management corporations like Blackrock, Fidelity, and Wisdom Tree push for a Bitcoin ETF, they will eventually get it and have a lasting impact on the overall reputation of certain cryptocurrencies and digital assets.
BCN: Most (if not all) giant asset managers have selected Coinbase as their surveillance-sharing partner. What does that say about decentralization?
ND: While it is still too early to tell how this will impact the industry in the long run, this is obviously not something that furthers decentralization.
What you have is the world’s largest ‘centralizers’ of assets working together with a centralized exchange like Coinbase to capitalize on the increasing value of cryptocurrencies, specifically Bitcoin. This is obviously not done to support the original idea of decentralized financial applications and the real and actual democratization of cryptocurrencies or digital assets.
While the selection of Coinbase may raise questions about decentralization, it’s essential to remember that the adoption and evolution of cryptocurrencies and blockchain technology are still progressing. The industry continues to explore and develop solutions that align with the decentralized ethos while addressing regulatory requirements and operational needs.
What are your thoughts about this interview? Let us know what you think in the comments section below.
Uniswap Labs Limits Access To Certain Tokens, What It Could Mean For The DeFi Sector
Software development studio Uniswap Labs (UL) announced the restriction of certain tokens via the app.uniswap.org domain. The company claims to be taking part in “creating a better” financial system and has taken the decision after reviewing the regulatory landscape and the actions of other “DeFi interfaces”.
The token removed from the domain represented a “very small portion of overall” trading volume on the platform, UL claims. Amongst the restricted tokens is Gold Tether (XAUt), Grump Cat (GRUMPY), iAAVE, iADA, iBNB, sAPPL, sCOIN, and many more related to options, tokenized stocks, and securities from traditional companies.
The software studio clarified that the Uniswap Protocol is a separate entity from the interface accessible via the app.uniswap.org domain.
(…) It provides unrestricted access to anyone with an Internet connection. Similarly, this action has no impact on the Uniswap Interface code, which remains open source, or the many other portals or locally run instances used to access the Uniswap Protocol.
The same clarification was made by Hayden Adams, inventor of the protocol, via his Twitter account. After receiving a lot of criticism for their decision, Adams reminded his followers about the difference between Uniswap Interface, the open-source GPL code, app.uniswap.org, the domain, and Uniswap the protocol.
Later, he added that true decentralization “doesn’t mean UL lets you do whatever you want on its website”, but that users can access the protocol via other interfaces. He added:
(In my opinion) the Uniswap Protocol remains the most decentralized of the top defi protocols by a wide margin. Why: Non-upgradable and permissionless smart contracts, w/ no admin keys or ability for UNI holders to steal underlying liquidity.
Is Uniswap Labs Trying To Prevent A Government Crackdown?
Of course, Adam’s statements caused different reactions across the crypto community. Stanislav Kulechov, a founder of decentralized protocol Aave, said that “DeFi front-ends should” be hosted on the InterPlanetary File System (IPFS).
In that way, the protocols can be “less dependent on the founding team” and maintain their decentralization. Kulechov also proposed a Bring-Your-Own-Front-End (BYOF) solution that would allow users to download the software into a device to access the protocol.
Gabriel Shapiro, General Counselor at Delphi Labs, pointed out the possibility that anyone who forks the Uniswap front-end could receive a lawsuit from the software development studio UL. Shapiro said that the company “like DMCA (Digital Millennium Copyright Act) takedown requests”.
In a different post, Shapiro addressed the rumors suggesting that UL and other DeFi projects received subpoenas from the Securities and Exchange Commission (SEC).
A few days ago, Senator Elizabeth Warren send a letter to the SEC Chair, Gary Gensler. Warren requested clarity on regulations regarding cryptocurrencies, stablecoins, and DeFi with a deadline set for July 28th, 2021, for Gensler to replied.
Many argued that UL decision could be related to that event and to the aforementioned subpoenas. Shapiro doesn’t completely rule out this possibility but claims that they only rumor to be taken with a grain of salt.
At the time of writing, UNI and other major DeFi tokens haven’t reacted to these events. Uniswap’s governance token trades at ,17 with a 4.1% in the daily chart.
![Uniswap UNIUSDT](https://www.newsbtc.com/wp-content/uploads/2021/07/Uniswap-UNIUSDT-860x512.png)
Paul Tudor Jones: Bitcoin Is “100% Certain”
Bitcoin price is back to around ,000 but whether or not the bull market is over or not isn’t yet certain. What is certain, according to Paul Tudor Jones, is the cryptocurrency itself.
Not the asset or its price, but the underlying ironclad cryptographic code. Here’s why the billionaire investor has allocated as much as 5% of his wealth to Bitcoin – an asset he holds in equal amounts next to gold, cash, and other commodities.
Paul Tudor Jones: Keep Assets In Commodities, Cash, Gold, And Crypto
It was the shot heard around the world: Paul Tudor Jones had given Bitcoin a nod of approval, comparing the ultra scarce cryptocurrency to gold in the 1970s. At that time, the gold standard lost its dollar peg and was trading at around an ounce. Today, it trades at just under ,000.
But the billionaire philanthropist believes that Bitcoin can be even better than gold, and labeled the cryptocurrency “the fastest horse in the race against inflation” back in May of last year. Since then he’s done nothing but double down on the emerging asset, comparing it to investing in a Apple or Google early.
Related Reading | Five Signs That The Bitcoin Bottom Is In
Now he’s back with more comments about Bitcoin, revealing that he now holds equal parts gold, cash, commodities, and crypto. Jones says that each are held in 5% increments, with the remainder on hold waiting to see what the Fed and the rest of central banks do next.
The billionaire philanthropist and investing legend more than doubled down on BTC | Source: BTCUSD on TradingView.com
Sorry Humans: Bitcoin Is Math, “Is 100% Certain”
Paul Tudor Jones initially revealed a 2% allocation and has since upped it to 5% – as much as gold, cash or commodities. The reason the invest likes the digital asset so much, is because “Bitcoin is math.”
“Math has been around for thousands of years. Two plus two is gonna equal four and it will for the next two thousand years,” he said. ” I like the idea of investing in something that’s reliable, consistent, honest, and a hundred percent certain.”
“It’s a way for me to invest in certainty.”
Using the Biden and Trump administration as an example along with the Fed, Jones asks “do I want to have faith, in that same reliability and consistency in human nature?” The answer time and time again has been no, as history has proven money is regularly debased by the governments that issue it.
Related Reading | What The Last Leg Up In The Crypto Bull Market Could Look Like
Questions on if the investing icon liked the cryptocurrency at current prices were largely ignored, and instead Jones reiterated his stance: “I like Bitcoin.” You can watch the interview segment below.
"The only thing that I know for certain is I want to have 5% in #gold, 5% in #bitcoin, 5% in cash, 5% in commodities," said legendary investor @ptj_official. pic.twitter.com/9NoESxUYbN
— Squawk Box (@SquawkCNBC) June 14, 2021
Featured image from iStockPhoto, Charts from TradingView.com
TA: Ethereum Consolidates Above $1,750, Why A Crucial Break is Almost Certain
Ethereum is still consolidating above ,750 and ,710 against the US Dollar. ETH price could soon either rally above the ,850 resistance or dive towards the ,550 support.
- Ethereum is holding the key ,750 and ,710 support levels.
- The price is currently trading below ,800 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near ,795 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be preparing a strong move with ,710 as a pivot zone.
Ethereum Price is Holding Key Support
Ethereum made another attempt to gain strength above ,850, but it failed just like bitcoin at ,000. A high was formed near ,865 before there was a sharp decline.
The price broke the ,800 support and settled below the 100 hourly simple moving average. The recent swing low was formed near ,754 and the price is now correcting higher. It is trading above the ,765 level.
Ether is now testing the 50% Fib retracement level of the recent decline from the ,811 high to ,754 low. An immediate resistance is near the ,790 and ,800 levels. There is also a connecting bearish trend line forming with resistance near ,795 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The trend line is close to the 61.8% Fib retracement level of the recent decline from the ,811 high to ,754 low. A successful close above the ,800 level might call for a fresh test of ,850. Any more gains could open the doors for a rally towards the ,000 resistance in the near term. An intermediate resistance might be near the ,935 level.
Downside Break in ETH?
If Ethereum fails to climb above the ,800 and ,850 resistance levels, it could nosedive. An initial support on the downside is near the ,750 level.
The main support is still near the ,710 and ,700 levels. A clear downside break below the ,710 support may possibly open the doors for a larger decline. In the stated case, the bears are likely to aim a test of the ,550 support zone in the days. An intermediate support might be near the ,640 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – ,710
Major Resistance Level – ,800
Argentina’s Central Bank Bans Certain Bitcoin Purchases as Economy Flails
If you’ve followed the macroeconomic or Bitcoin news cycle over the past few months, you’ve likely heard and seen the qualms of Argentina.
The South American country has been going through a bout of political and economic turmoil, which has culminated in rapidly-increasing inflation and a tumultuous stock market. In short, it is unlikely that holding Argentine pesos or local assets is sustainable. Hence, many have looked to alternative assets, like Bitcoin and U.S. dollars. But, the Central Bank of Argentina is picking up on this.
Related Reading: Crypto Market to Form Golden Cross as Bitcoin Gains Momentum Above k
Argentina Effectively Bans Bitcoin & U.S. Dollar Purchases
According to a report from CoinTelegraph’s Brazil branch, the nation’s central bank wrote in a recent message that purchasing cryptocurrencies with certain payments are banned. The payment method in question is credit cards, with the bank writing:
“Acquisition of Bitcoin and cryptocurrencies: It is prohibited to purchase BTC with this payment method. The only remaining alternative for this investment is to do so with funds transferred from a bank account.”
Argentina’s central bank claims that this is being done to preserve the integrity of the country’s foreign exchange reserves.
This comes shortly after the Argentinian monetary authority revealed that it will only be allowing individuals Argentinians to purchase 0 per month on the legal market. Previously, individuals were allowed to purchase up to ,000 a month.
#Argentina's Central Bank has just lowered the #Dollar currency purchases from ,000/month to 0/month.
It's time for #Bitcoin. The only way to bring monetary sovereignty back to the people. pic.twitter.com/oix0WH2UOF
— Crypto Rand (@crypto_rand) October 29, 2019
Other Solutions
While Bitcoin is unavailable to be purchased through credit card solutions, the cryptocurrency can be bought through alternative means, namely platforms like LocalBitcoins and Paxful, which are focused on providing peer-to-peer exchange through alternative payment means like cash and gift cards.
It seems that locals have taken notice of these platforms. According to Coin.dance, Argentina’s LocalBitcoins market has seen near-record volumes over the past few weeks.
Related Reading: Analyst: Bitcoin More Likely to Surge 50% to ,000 Than Fall
This is for good reason. Bitcoin transactions cannot be censored, can be sent around the world to anyone in minutes, and are cheap when compared to the bank wire system that exists in the fiat system. Also, BTC isn’t able to be hyperinflated, as there exists a strict 21 million coin supply cap.
Bitcoin Not a Proper Solution?
Sure, the adoption of Bitcoin and cryptocurrencies makes sense fundamentally — they are presumably more stable, an easier way to transact, and more global than the Argentine peso. But, there is no guarantee that Argentinians across the country are embracing cryptocurrencies.
Argentinian-American crypto-macro researcher Alex Krüger said as Argentina’s economy was flailing earlier this year that his peers back at home weren’t buying Bitcoin. He wrote in Twitter threads that Bitcoin awareness in the South American nation is “extremely low”. And thus, the idea that Argentines are rushing to scoop up Bitcoin with their life savings doesn’t make much sense.
Featured Image from Shutterstock
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