UK Aims to Implement Crypto Regulation Soon

The United Kingdom is looking to establish regulations for digital assets within the next 12 months, according to Andrew Griffith, the economic secretary to the UK Treasury. In an interview with CNBC on April 17, Griffith stated that the country aims to take advantage of the benefits that blockchain technology can bring to the private sector and the overall economy. He added that the UK’s long-term vision is to enable companies to maximize the opportunities presented by crypto assets through effective regulation.

This move towards regulating digital assets reflects the UK government’s recognition of the growing importance of blockchain technology and cryptocurrencies. The implementation of sound crypto regulation will provide greater clarity for businesses and investors operating in the space, reducing the uncertainty and risk associated with digital assets.

The potential benefits of blockchain technology are significant, particularly for industries such as finance, where it can streamline processes, reduce costs, and increase transparency. However, the lack of clear regulation has been a barrier to wider adoption, with many companies reluctant to engage with crypto assets due to the associated risks.

Griffith’s announcement has been met with enthusiasm from the crypto community, with many viewing it as a positive step towards wider adoption of digital assets. It is hoped that this move will lead to increased investment and innovation in the space, further driving the growth of the UK’s digital economy.

The UK is not alone in recognizing the importance of regulating digital assets. Governments around the world are increasingly looking at ways to establish clear guidelines for the use of blockchain and cryptocurrencies. While some countries have taken a more cautious approach to regulation, others, such as Switzerland and Malta, have been more proactive in establishing themselves as cryptocurrency-friendly jurisdictions.

The establishment of digital asset regulation is not without its challenges, however. One of the key issues facing regulators is how to strike a balance between protecting consumers and promoting innovation. Finding the right balance between regulation and innovation will be critical to ensuring the success of the UK’s digital asset industry.

In conclusion, the UK’s move towards regulating digital assets is a positive development for the country’s digital economy. By providing greater clarity and reducing risk, effective regulation will encourage wider adoption of blockchain technology and cryptocurrencies. As the UK works towards establishing its regulatory framework, it will be important to strike a balance between promoting innovation and protecting consumers.


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Crypto Firms Make Job Cuts Amidst Ongoing Crypto Winter

This week, many cryptocurrency companies have eliminated jobs in response to the current crypto winter. However, these companies have chosen to keep “impactful” people on staff as they prepare for a “longer slump.”

At least 216 jobs were cut across three different cryptocurrency companies. These companies are open-source software laboratory Protocol Labs, blockchain data firm Chainalysis, and cryptocurrency exchange Bittrex. Each of these companies reduced their workforce by 89, 83, and 44 employees, respectively.

In a blog post dated February 3, Juan Benet, CEO of Protocol Labs, the firm that introduced Filecoin (FIL), said that the company will be cutting jobs because it needed to concentrate its workforce “against the most impactful and business-critical projects.”

He claimed that the firm had come to the conclusion that it was in the best position to “weather this protracted winter” by eliminating “89 jobs,” which is equivalent to around 21% of its staff.

Given that the cryptocurrency business is now experiencing “very tough” conditions, Benet said that the firm should “plan for a lengthier slump.”

Meanwhile, on February 1, Bittrex CEO Richie Lai emailed the firm’s workers to notify them that the company would be reducing its employment in order to “maintain the long-term health” of the business.

On February 2, the email was shared inappropriately on Twitter. Lai claimed that despite the fact that the leadership team has been “working vigorously” over the last several months to decrease expenditures and boost efficiency, the efforts have not achieved the “results required.” Lai added that the efforts have not delivered the “results necessary.”

Lai went on to say that the current state of the market necessitated a reevaluation of the company’s approach and a readjustment of its “investments with the new economic climate.”

On February 2, 2018, records pertaining to employment in the state of Washington indicated that Bittrex had eliminated 83 positions.

According to statements made by Maddie Kennedy, director of communications at Chainalysis, to Forbes on February 1, the firm let off 44 of its 900 workers, which represents around 4.8% of the workforce. Kennedy said that those who were let go were “mainly in sales” at the company.

The announcement of these layoffs follows reports that in January, at least 2,900 employees were let go across 14 different cryptocurrency organisations.

Among those companies, Coinbase saw the most personnel reductions, with 950 employees losing their jobs on January 10th.

During this time, rival cryptocurrency exchanges, Luno, and Huobi each laid off about 500 employees, 330 employees, and 320 employees, respectively.


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National Australia Bank to Launch Ethereum-Based Stablecoin

National Australia Bank (NAB), one of Australia’s “Big 4” banks, is getting ready to launch an Australian dollar-pegged stablecoin on the Ethereum network. This coin will be backed by the Australian dollar. This coin will have the value of one Australian dollar attached to it. This coin will have a value equivalent to one Australian dollar affixed to it when it is released. When it is first put into circulation, this coin will have a value ascribed to it that is comparable to one Australian dollar. When it is initially placed into circulation, this coin will have a value that is roughly equivalent to one Australian dollar. This value will be assigned to it before it is put into circulation. This coin will first be put into circulation with a value that is approximately comparable to one Australian dollar. This value will be determined when the coin is originally put into circulation. Before being sent into circulation, it will get a value equivalent to this one first. If anything similar were to occur, the National Australia Bank (NAB), which is one of the “Big 4” banks in Australia, would be the second of the country’s financial institutions to be touched by it. NAB is a member of the Reserve Bank of Australia.

In a story that was published on the 18th of January by the Australian Financial Review, the subject of the introduction of the AUDN stablecoin was examined. The piece was composed using the English language throughout. According to the conclusions of the research, it is projected that the launch of the AUDN stablecoin would take place somewhere in the neighbourhood of the middle of the year 2023. The current situation has been brought to the attention of a greater number of members of the general public. The easing of the transfer of funds across international borders is the primary objective of this firm; the ease of the purchasing and selling of carbon credits follows in a close second (AFR).


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Russian Finance Ministry on Track to Legalize Crypto for Cross-Border Payments

The current economic landscape in Russia is forcing both the Central Bank and the Ministry of Finance to rethink their approaches to cryptocurrencies. 


According to the State-backed TASS News Agency, Deputy Finance Minister,Alexei Moiseev said athatthe Central Bank and the Ministry thave reached an agreement that the use of cryptocurrencies for cross-border payments can no longer be undermined.

“As for the regulation of the cryptocurrency market, the difference in approaches has remained. But I can say that the Central Bank has also rethought [the approach], taking into account the fact that the situation has changed, and we are rethinking it. Because the infrastructure that we plan to create is too rigid for the use of cryptocurrencies in cross-border settlements, which, of course, we must, first of all, legalize somehow. On the one hand, give people the opportunity to do it. On the other hand, put it under control so that there is no laundering, paying for drugs, and so on,” Moiseev said.

Since Russia’s invasion of Ukraine, the former country has been battling a series of sanctions that have crippled its global financial capabilities. In light of these, Russian Prime Minister Mikhail Mishustin hinted at the possibility of using Bitcoin for cross-border transactions.

With Moiseev maintaining a similar stance, it seems obvious that the official legalization of Bitcoin, which was once under the consideration of being banned earlier this year, is just a matter of time. 

According to Moiseev, the move to support crypto is to have the opportunity that will aid easy monitoring as crypto native users find a way to either HODL or trade crypto either in or offshore.

“Now people open crypto wallets outside the Russian Federation. It is necessary that this can be done in Russia, that this is done by entities supervised by the Central Bank, which are required to comply with the requirements of anti-money laundering legislation, and first of all, of course, to know their client,” Moiseev said.

Image source: Shutterstock


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Strong Bitcoin and stocks rally position bulls for victory in Friday’s $860M options expiry

Bitcoin (BTC) bulls have good reason to celebrate the 22% gain in the past week. The price is pushing toward $46,000 and to the surprise of many, the $43,000 level held steady despite the volatility caused by the United States inflation data released on Feb.10.

There have been mixed feelings on the macroeconomic side. For example, retail sales in the Eurozone disappointed on Feb. 4 when the figure showed a 2.0% year-on-year growth versus the 5.1% expectation. while the United States nonfarm payroll abruptly showed a 467,000 jobs increase.

Investors are clearly increasingly concerned about corporate earnings despite the stronger than expected China and U.S. economic growth. In the past few weeks some big names took a hit, including Meta (FB), Delivery Hero (DHER-DE), and Paypal (PYPL).

Today’s 7.5% yearly U.S. consumer price index growth will likely reinforce the Federal Reserve’s expectations of at least two interest rate hikes throughout 2022 and not many investors can seek protection in treasuries because the 5-year Treasury yield currently stands at 1.9%.

Bitcoin is still a risky asset, but its price is discounted

Considering that the S&P 500 is only 5% shy of its all-time high, Bitcoin’s recent strength should not come as a surprise. Curiously, put (sell) option instruments dominate the Feb. 11 options expiry, but bears were caught by surprise after Bitcoin price stabilized above $43,000 this week.

Bitcoin options aggregate open interest for Feb. 11. Source: CoinGlass

A broader view using the call-to-put ratio shows a 14% advantage to Bitcoin bears because the $400 million call (buy) instruments have a smaller open interest versus the $460 million put (sell) options. However, the 0.86 call-to-put indicator is deceptive because most bearish bets will become worthless.

For example, if Bitcoin’s price remains above $44,000 at 8:00 am UTC on Feb. 11, only $55 million worth of those put (sell) options will be available. That effect happens because there is no value in the right to sell Bitcoin at $40,000 if it’s trading above that level.

Bulls are aiming for a $300 million profit

Below are the three most likely scenarios based on the current price action. The number of options contracts available on Feb. 11 for bulls (call) and bear (put) instruments varies depending on the expiry price. The imbalance favoring each side constitutes the theoretical profit:

  • Between $42,000 and $44,000: 4,550 calls vs. 1,750 puts. The net result is $120 million favoring the call (bull) instruments.
  • Between $44,000 and $46,000: 6,380 calls vs. 860 puts. The net result favors bulls by $250 million.
  • Between $46,000 and $48,000: 7,860 calls vs. 50 puts. The net result favors the call (bull) instruments by $350 million.

This crude estimate considers the call options used in bullish bets and the put options exclusively in neutral-to-bearish trades. Even so, this oversimplification disregards more complex investment strategies.

For instance, a trader could have sold a call option, effectively gaining a negative exposure to Bitcoin above a specific price. But unfortunately, there’s no easy way to estimate this effect.

Related: Exchange stablecoin reserve hits $27B as Bitcoin rises toward $50K ‘fair value’

Bears best case scenario remains unkind

Bitcoin bulls need a small pump above $46,000 to score a $350 million profit on Feb. 11. On the other hand, bears’ best case scenario requires a 4% price drop from the current $45,600 to reduce their loss to $120 million.

Bitcoin bears currently have no reason to add short positions, considering the recent weak corporate data numbers. Therefore, bulls should continue to display strength by pushing the price to $46,000 or higher during Friday’s options expiry.

A $350 million profit might be just what’s needed for bulls to regain confidence and re-open long leverage futures, causing further upward pressure.

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