Bitcoin Swings as EU Plans Rules for Crypto Transfer Transparency

The largest digital asset, Bitcoin, the price stays below $34,000 as the European Union plans new rules for cryptocurrencies transfer transparency. The Crypto market had witnessed a marginal rally after Visa announced a partnership with major crypto companies. The short-lived rally however lifted cryptocurrencies market capitalisation to $1.41 trillion after gaining 1.5% in the last 24 hours.

Bitcoin’s dominance is currently 45.22%, representing a decrease of 0.19% over the day. The European Union will propose new rules that require cryptocurrency service providers to collect and make available information regarding cryptocurrency transfers, according to a Reuter’s report that cites European Union documents provided to the news organization.

The proposal to increase the transparency of cryptocurrency transfers was included as part of European Union documents advocating to create a new agency called the Anti-Money Laundering Authority.

Cryptocurrency holders are “exposed to money laundering and financing of terrorism risks, as flows of illicit money can be done through transfers of crypto-assets,” Reuters reported that the documents said.

Transfers of digital assets are currently not regulated by European Union rules for financial services providers.

SEC turns its attention to BTC regulation

Bitcoin prices have been suspiciously quiet lately but still haven’t managed to escape the regulatory glare. The United States Securities Exchange Commission (SEC) Chairman, Gary Gensler, tells lawmakers that investor protection rules should apply to crypto exchanges too.

Gary has had it in for crypto since he took over as SEC Chairman in April of this year. “Having previously taught classes on blockchain and other financial technology, there was hope that he might be a bit more understanding of the importance of decentralized finance and give crypto a little boost.

“But alas, he has made it clear since he took his place as chairman that he thinks more investor protections are needed for Bitcoin and other crypto assets, and greater regulation”, a US-based crypto analyst said at a forum on Trading View platform.

Analysts see crypto as a digital asset, a scarce store of value, but highly volatile, noting that there are investors that want to trade that, and trade that for its volatility, in some cases just because it is lower correlation with other markets.

I think that we need greater investor protection there, Gensler said in May, talking about Bitcoin specifically.

His stance could be part of the reason that the SEC has been dragging its feet when it comes to approving a Bitcoin ETF – which would be massive for crypto adoption.

A BTC ETF would mean that retail investors could invest in crypto without actually having to purchase it directly, removing the issue of complex custody arrangements.

There have been multiple applications to the SEC for a Bitcoin ETF in the past few years, and the regulator has just delayed its decision yet again on the most recent one.

Bitcoin prices have been unusually quiet recently, as have other leading cryptos like Ethereum (ETHUSD) and Doge (DOGEUSD), which suggests some kind of pick is almost certainly on the way.

“It’s like kids. When they go quiet, that’s when you need to worry…” crypto analysts said in a reaction on Twitter.

Bitcoin Swings as EU Plans Rules for Crypto Transfer Transparency