The cryptocurrency market is undergoing a minor correction as Bitcoin (BTC) faces heavy resistance at $19,000 levels. Bitcoin was trading at $18,812.17, down 1.4% in the last 24 hours when writing this article. Ether (ETH) was trading at $572.21, reflecting a decrease of 5.1% in 24 hours. XRP lost 3.9% to trade at $0.6412.
Major altcoins that have gained ground in the past 24 hours include USD Coin (USDC-$0.9992, 0.3%), Stellar (XLM-$0.1997, 0.3%), and Tether (USDT-$1, 0.2%).
Major altcoins which have lost ground in the past 24 hours include ChainLink (LINK-$14.29, -8.4%), Dash (DASH-$102.72, -9.6%), Tezos (XTZ-$2.61, -3.7%), Cosmos (ATOM, $6.01, -4.7%), Bitcoin Cash (BCH-$315.21, -11.7%), Binance Coin (BNB-$31.42, -9%), Polkadot (DOT-$5.32, -7.6%), Cardano (ADA-$0.1575), Monero (XMR-$130.68, -5%), Bitcoin SV (BSV-$192.72, -7.9%), EOS (EOS-$3.47, -4.3%), IOTA (IOTA-$0.3527, -10.4%) and Tron (TRX-$0.0334, -8.4%).
Government level initiatives
OCC proposes a rule to evaluate crypto-forced businesses
The US Office of the Comptroller of the Currency (OCC) has proposed a rule that will force banks to evaluate crypto-focused businesses based on license and compliance excellence. Such a measure is expected to provide a boost to the adoption of cryptos.
Brian Brooks, the crypto-friendly Acting Comptroller, trusts the latest rule will “ensure fair access to banking services provided by national banks, federal savings associations, and federal branches and agencies of foreign bank organizations.”
In its media release, the OCC reaffirmed that banks must offer access to facilities and capital based on individual clients’ risk appraisal. The supervisory organization cautioned banks against depending on wide-ranging rulings that impact entire categories or classes of clients. Brooks stated: “Fair access to financial services, credit, and capital are essential to our economy. This proposed rule would ensure that banks meet their responsibility to provide their services fairly since they enjoy special privilege and powers because if the system fails to provide fairness to all, it cannot be a source of strength for any.”
After it gets endorsed as a law, the OCC trusts that the suggested rule will forbid banks from teaming up to restrain access to banking services for some specific industries.
Nigeria’s Finance Ministry to build an infrastructure for blockchain and cryptos
Nigeria’s Finance Ministry has detailed discussion with its financial market watchdog to build a state-of-the-art infrastructure for blockchain and cryptos. This initiative could spur the mass adoption of cryptos in Africa’s largest economy. Cryptos are categorized as commodities and regulated by relevant securities law in the country.
Business Day, a Nigerian market intelligence periodical, has reported that the Ministry of Finance has joined hands with the Abuja-based Securities and Exchange Commission (SEC) to “provide a regulatory environment for blockchain” and cryptocurrencies.
As per SEC Nigeria: “The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.”
Private sector initiatives
SBI Group rolling out crypto lending facility – VC Trade Lending
SBI Group, Japan’s financial behemoth, is rolling out a crypto lending facility via SBI VC Trade, its crypto-linked subsidiary. The latest crypto lending platform will pave the way for users to loan their cryptocurrencies to SBI and generate interest of 1%, including taxes.
The latest service, named VC Trade Lending, will initially back the numero uno crypto Bitcoin (BTC) with SBI, additionally aiming to include support for XRP and Ether (ETH). A minimum of 0.1 Bitcoin (worth around $1,894 when writing this article) and a maximum amount of 5 Bitcoin (worth roughly $94,700) can be lent.
SBI clarified that VC Trade Lending would not have any account management charges or yearly membership fees. The facility will also not levy any fees for deposits in Japanese yen or crypto. However, withdrawals in yen will be charged.
Miscellaneous
Certain firms increase demand for Bitcoin
A report published by Pantera Capital states that firms such as PayPal and Square have considerably increased Bitcoin’s demand, leading to a sharp price rally. Bitcoin’s market cap has also reached an all-time high of $350 billion and surpassed MasterCard. Pantera has opined that the latest rally is “sustainable” compared to 2017 as it depends more on institutional demand.
Purchases made by PayPal and Square platforms are more than the new Bitcoins being generated. They continue to outbid each other. For every unit bought by customers, PayPal must hold an equivalent quantity of Bitcoin (1:1 ratio) as per New York’s Bitlicense rules.
While PayPal has 300 million users, Bitcoin has roughly 100 million users. If the trend continues, in the weeks ahead, PayPal would start purchasing more than the entire supply of newly generated Bitcoins. Currently, only the US clients of PayPal are allowed to use the platform for buying Bitcoin, in addition to other cryptos such as Litecoin, Ethereum, and Bitcoin Cash.
The company intends to widen its service to clients of other countries by next year. That might increase the buying pressure further.
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