Kazakhstan to Reportedly Let Banks Open Cryptocurrency Accounts

The government of Kazakhstan would soon reportedly allow financial institutions to offer banking services to cryptocurrency exchanges in the country to facilitate crypto transactions. 

Local Banks to Service Crypto Exchanges

The report by the Astana Times which mentioned the Data Center Industry and Blockchain Association of Kazakhstan as the source stated that crypto-based businesses would soon be allowed to have bank accounts. 

According to the report, cryptocurrency exchanges would need to register with the Astana International Financial Center (AIFC). The AIFC which is a financial hub headquartered in Nur-sultan is planning to launch a pilot project with second-tier local banks in Kazakhstan. 

The pilot project is expected to last for one year, which would enable banks to offer services to cryptocurrency exchanges, making it possible for investors to buy and sell bitcoin and other cryptocurrencies. Also, the Kazakhstan government would use the pilot to evaluate the benefits and risks associated with crypto assets. 

Meanwhile, the use of cryptocurrency and other digital assets are currently banned in Kazakhstan. However, some observers and market experts believe that the government would lift the ban following the completion of the pilot project. 

Kazakhstan Ranks Third in Global Mining Power Share

The latest development comes amid the country’s increased interest in crypto mining. Back in September 2020, the government was considering pumping $700 million into the country’s local cryptocurrency mining sector.

Following the crackdown on bitcoin mining in China, mining companies have moved to friendlier jurisdictions like the US and Kazakhstan. In June, Kazakhstan received the first batch of mining machines from Chinese bitcoin mining company BIT Mining. 

The company planned to transport two other batches before the beginning of July. BIY Mining also announced back in May that it would invest over $9 million towards the construction of Kazakhstan’s Data Mining Center.

Meanwhile, the Central Asian country has seen a spike in its share of global bitcoin mining. According to data by the Cambridge Bitcoin Electricity Consumption Index (CBECI) published earlier in July, Kazakhstan rose to third place on the global mining power share, after recording an almost six-fold increase. 

Back in September 2019, the country’s share stood at just 1.4 percent. However, the percentage rose to 8.2 percent in April 2021.

Within the same period, China’s share of bitcoin power dropped from 75.5 percent to 46 percent. Meanwhile, the U.S. recorded an increase from 4.1 percent to 16.8 percent, putting the country in second place. 

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The Ominous Ethereum Comparison That Will Leave Bulls Petrified

All across finance, the conversation of the day has been centered around China and the ongoing regulatory crackdown  As it pertains to the crypto market and assets like Bitcoin and Ethereum, holders are wondering if there could be spillover effect and additional FUD that could on the ongoing recovery in play.

But it is in the Tencent chart itself that suffered a devastating collapse today that should have Ethereum bulls worried due to a frightening comparison between the two. Making matters worse, knocking on wood won’t help, as the Lumber futures chart could help shed a light on what the next target might be for the top ranked altcoin.

How The China Regulatory Crackdown Is Hurting Crypto, Chinese Stocks

Ever since Black Thursday last year markets have been in an explosive uptrend. Bitcoin rallied more than three times its former all-time high, Ethereum nearly four times as much, and even the stock market is more than double the value it was more than one year ago.

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Cryptocurrencies corrected harshly a few months ago, but the stock market kept on climbing. The US stock market still is, although as of today the rally to new record highs has taken a pause – a pause due to fear related to a completely different region.

Related Reading |  TA: Ethereum Trims Gains, Why ETH Could Restart Its Rally

In addition to the country banning Bitcoin mining and causing other dramatic that hurt crypto prices, China has been rolling out a widespread regulatory crackdown that has crippled certain stocks in the country. For example, Tencent dropped more than 10% in the last 48 hours alone. Such a drop is nearly unheard of in the stock market, while that type of move is typically a walk in the park by crypto standards.

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An equally sized move in an altcoin like Ethereum, could be much worse by comparison.

ethereum lumber tencent

ethereum lumber tencent

Let's hope Ethereum doesn't fall victim to a similar fate | Source: ETHUSD on TradingView.com

Ethereum Chart Comparison Has Bulls Knocking On Wood

A comparison with Tencent is exactly why crypto bulls need to be worried and fearful. The top altcoin that the rest of the industry is built on, is showing a structure very similar to Tencent before the massive breakdown.

What’s worse, is the fact that almost all price action over the last three years between the two assets looks highly similar. Placing the two assets next to another once-trending asset that has since collapsed, further paints a frightening picture.

Related Reading | Why The Next Crypto Bear Market Will Be The Worst Yet

Random-length lumber futures have a chart that shows a drop so nasty, that if the same thing happened in Ethereum, it would take price per coin back to around $3725. The three charts appear to have bottomed at around the same level and date, topped around the same level and date, so why wouldn’t they continue to behave in a similar fashion?

What do you think, is Ethereum in trouble?

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com


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US Lawmakers Want to Avoid Chinese-Like Surveillance With Digital Dollar

In brief

  • U.S. politicians today quizzed experts about the release of a digital dollar.
  • Republicans were particularly worried about it being used for surveillance.
  • The U.S. is still way behind China with the development of a central bank digital currency.

U.S. lawmakers today spoke about the benefits of a central bank digital currency (CBDC)—but conservatives also expressed concern over how it could turn the country into a Chinese-like surveillance state. 

Politicians quizzed experts on how a so-called digital dollar in the States would work during a two-hour meeting held by the Subcommittee on National Security, International Development and Monetary Policy, on Tuesday morning. 

A CBDC is a digital version of a fiat currency, such as the British pound or U.S. dollar, backed by a central bank and therefore controlled by the government. Countries around the world are in different stages of researching the technology. 

Some nations, like China, are well ahead of the game and already have one pretty much developed. The U.S. is still researching the benefits of one and has said previously that it is in no rush to release one. 

And during today’s meeting, titled “The promises and perils of central bank digital currencies,” that point was reiterated. “We must not rush the process,” said Rebulican Congressman Andy Barr (KY-06). “Getting it right is more important than getting it done fast.”

Barr also said that the U.S. would have to observe China closely as it could use its digital yuan to “expand domestic surveillance initiatives” or even to “enforce party discipline.” 

Congressman Patrick McHenry (R-NC) agreed and said that the U.S. would have to wrestle with “privacy rights and civil liberties—something the Chinese don’t give a whit about,” when developing a CBDC. 

While Tom Emmer (R-MN) said that a CBDC would only be beneficial if it was “open, permissionless and private.”  

Some, but not all, CBDCs employ a blockchain, the technology that underpins cryptocurrencies such as Bitcoin. These networks differ from those that power permissionless cryptocurrencies such as Bitcoin and Ethereum, however, since CBDCs are controlled by a central bank. 

“Any attempt to craft a CBDC that enables the Fed to provide retail bank accounts and mobilizes the CBDC into a surveillance tool able to collect all sorts of information on Americans would do nothing other than put the U.S. on par with China’s digital authoritarianism,” added Emmer. 

Yaya Fanusie, the adjunct senior fellow, Energy, Economics and Security Program, Center for a New American Security, said that “fine-tuned rules around data privacy” would be needed if the U.S. launches its own digital dollar. 

The Fed will release a digital dollar whitepaper later this year. The hope is that such a currency would improve financial inclusion for unbanked people in the U.S.—a figure that stands at 14 million. 

Proponents of a digital dollar also hope that a CBDC would speed up transactions in and around the U.S. and reduce costs.


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Here’s Ripple’s Strongest Defense Against the SEC in XRP Lawsuit, According to Crypto Legal Expert Jeremy Hogan

Crypto legal expert Jeremy Hogan has named what he thinks is Ripple’s strongest defense against the US Securities and Exchange Commission (SEC) in the lawsuit involving XRP.

The SEC has accused Ripple of illegally issuing XRP to investors as a security and alleges that the token is still one today.



In a new AMA (ask me anything) video, Hogan addresses how the price of XRP has a strong correlation with other crypto assets, such as Bitcoin or Cardano.

According to Hogan, if XRP werea security, its price should be correlated with Ripple’s actions and not with the performance of other cryptocurrencies.

The attorney says the correlation with other crypto assets is likely “Ripple’s strongest defense” in their lawsuit with the top regulator.

The legal expert points to a research paper from 2018 by Andrew Burnie of the Alan Turing Institute that outlines how the price of various cryptocurrencies correlate with each other. According to the paper, XRP is correlated to ADA by a factor of over 70%.

“As you are aware, the SEC has to prove that XRP is a security, and one thing it will have to show is that its retail purchasers – me and you – are looking to Ripple to increase the value of XRP, and what this paper shows is that the price of XRP is not really correlated to anything Ripple does. In other words, Ripple ended its partnership agreement, for example, on March 9th with Moneygram and nothing happened to XRP’s price. However, according to this research paper, the price of XRP is heavily correlated with Cardano. 71% correlated according to the experts… Ripple has briefly touched on this part of their defense, but this is the first time I’ve seen that it correlates so strongly with Cardano. Very interesting.

Ripple can announce a great business deal, the XRP price won’t budge much. But if the price of Cardano falls 10%, you’d expect to see the price of XRP fall 7.1%. That is not how a security acts. I really hope that Ripple has good expert witnesses lined up and statistical correlation.”

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October 2020 Déjà vu? Bitcoin pullback at $38K has traders at odds over next move

The wider cryptocurrency market entered a period of consolidation on July 27 following Bitcoin’s (BTC) brief spike above $40,000 the day before that helped ignite a rally across the market and brought a renewed sense of optimism to the market. 

Data from Cointelegraph Markets Pro and TradingView shows that a mid-day attempt by bulls to lift the price of BTC back above the $40,000 level was rejected resulting in a price pullback to $37,500.

BTC/USDT 4-hour chart. Source: TradingView

While Tuesday’s price pullback may suggest that Monday’s rally was simply a short squeeze, others point to the rising Grayscale Bitcoin Trust (GBTC) premium, which is now at the highest levels in months at -5.88%, suggesting that institutions are once again betting on more BTC price upside. 

Bitcoin bulls battle to reestablish uptrend

Rumors that Amazon would begin accepting cryptocurrency payments in 2021 helped ignite the market-wide rally seen on Monday, though officially denied by the company later on. 

However, as pointed out by pseudonymous independent market analyst Rekt Capital, Bitcoin’s price chart shows a fractal pattern that is similar to the price-performance in October 2020, just before BTC price began its run to a new all-time high.

If a similar pattern plays out in the current market, Bitcoin’s price will see a continuation of the uptrend that the Amazon rumors initiated.

Not all of the available suggests a continuation of the upward momentum, however, as was pointed out by Jarvis Labs analyst and co-founder, Ben Lilly, who has been monitoring on-chain data to gain deeper insight into the most recent pump, particularly with Ethereum’s London hard fork slated for Aug. 4.

Lilly said,

“Onchain activity and demand hasn’t showed up. Pair this up with Amazon news as fake and shorts getting rekt, I wouldn’t be surprised to see low $30ks be4 1559.”

An example of bearish bias, however, was provided by the pseudonymous Twitter user Bear Wolf, who saw Monday’s developments as nothing more than a short squeeze amid a wider bear market.

“19K is still my target for the end of the bear market,” he wrote. “Dead Cat Bounce to 46K (Short Squeeze). TA invalidates if we pump to 50K and find support >>ABOVE<< 46K.”

Related: Sen. Warren urges Treasury Secretary Yellen to combat rising crypto threats

Altcoins give back gains

A large percentage of the gains seen in the altcoin market on Monday were given back on Tuesday as the euphoria from the Amazon rumors subsided.

Daily cryptocurrency market performance. Source: Coin360

Dogecoin (DOGE) and Solana (SOL) were the two hardest-hit tokens in the top 20, seeing losses of 10% and 10.8%, respectively, while Monday’s top performers Strike (STRK) and Venus (XVS) both dropped by 16%.

A pair of 30% gains from Axie Infinity (AXS) and MyNeighborAlice (ALICE) marked the best performances of the day while the blockchain-based identity management solution Civic (CVC) saw its price increase by 20%.

The overall cryptocurrency market cap now stands at $1.488 trillion and Bitcoin’s dominance rate is 47.8%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.