Bitcoin, Ethereum Rise As Regulatory Actions Seen As Signals Of Market ‘Maturation’

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Investors see the crackdown as a sign that the crypto markets are maturing, an analyst said. Photo: Reuters

Cryptocurrencies were significantly higher on Tuesday morning, continuing to recover from a previous slump, despite more regulatory action.

Bitcoin (BTC-USD) rose 1.6%, trading at $ 35,249 ($ 25,433). Although it has recovered from a sale in which its price fell below $ 30,000, it is still a long way from its all-time high of $ 63,000 at the start of the year.

Ethereum (ETH-USD), the world’s second largest cryptocurrency, rose 8%, trading at $ 2,158.

Cryptos had collapsed amid news of regulatory crackdown in China, but since then they have been steadily increasing. They are not fazed by the news that the UK financial watchdog has warned consumers that one of the world’s largest bitcoin exchanges is not allowed to engage in regulated activity in the UK.

Over the weekend, the Financial Conduct Authority (FCA) ordered Binance Markets to remove all financial advertisements and promotions by June 30.

The FT reported that Binance customers are no longer able to withdraw or deposit books using Faster Payments, one of the UK’s major payment systems. Binance said on its website that the platform has been suspended for maintenance

“The lack of access to Faster Payments has been a major drag on UK customers’ ability to transfer money from the exchange directly to their bank accounts,” FT reported.

Read more: Why the UK banned Binance and what it means for your crypto assets

Mati Greenspan, CEO of Quantum Economics, clarified that Binance has not been banned from the UK and the company is still free to offer cash crypto exchanges in the country.

He said the British were still free to buy, sell and hold cryptos on the platform, but the FCA launched enforcement action against Binance for offering complex products where they shouldn’t have been. .

Bitcoin was in place on Tuesday morning. Chart: Yahoo Finance France

Investors see the crackdown as a sign that the crypto markets are maturing and the company will need to speed up its process to become a regulated exchange, which will likely lead to increased confidence among crypto traders, Naeem Aslam said, chief market analyst at Ava. To exchange.

The story continues

He also pointed out that despite tighter controls imposed by global financial regulators, crypto investments in India, the world’s largest democracy, have grown from $ 200 million to nearly $ 40 billion in one year.

“Currently, 15 million people in India are exchanging digital currencies, and the increase in investment demonstrates the potential of bitcoin to reach new heights.”

Meanwhile, Greenspan also pointed out that due to the mining crackdown in China, bitcoin’s hash rate is now at its lowest level in two years. The hash rate is a unit of measurement of the processing power of the bitcoin network.

“There is still more than enough hashing power to keep the network safe and secure, and there is no reason to believe that any of this will have a significant impact on market prices,” he said. declared.

But he added that anyone sending bitcoin over the network should be prepared to wait longer than usual.

Watch: What is Bitcoin?

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