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European Commission adopts new crypto regulations to ‘boost’ financial innovation

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In an attempt to provide more clarity on regulations to crypto firms, European Commission released a document titled The Digital Finance Package that included digital finance and retail payment strategies, according to an announcement today. This would be the first time that the EC has proposed detailed legislation on cryptocurrency assets. 

According to the release, EC said it would lay more emphasis on stablecoin adoption in the new legislative proposals, but the release did not specify whether these stablecoins will be backed by the Euro, especially since most tokenized coins are pegged to the United States dollar. However, Chief Economist of the European Central Bank, Philip R. Lane stated in a tweet today

The euro belongs to the citizens of Europe, be it banknotes or digital. The ECB (European Central Bank) is the custodian on their behalf.

He further added the Central Bank was already exploring the benefits and challenges of adopting the digital euro.

Meanwhile, EC authorities have aimed for stricter requirements for stablecoin issuers in terms of capital, investor rights, and supervision. This would include publishing a white paper with mandatory disclosure requirements, however, small and medium-sized enterprises would be exempted from this disclosure, if the firm’s total consideration of crypto offering was less than 1 million euro ($1.1 million) in one year, the report detailed. 

In addition to this, the Commission also proposed today a pilot regime called the ‘sandbox’ approach which would help regulators to gain experience on the use of DLTs. Other than regulators, the EC believed that the testing approach would  allow companies to explore innovative solutions in the blockchain sector without “too much pressure from the authorities.” The project is said to launch by 2022, the release stated. 

Source: https://eng.ambcrypto.com/european-commission-adopts-new-crypto-regulations-to-boost-financial-innovation

Blockchain

Did VET Break Out or Are There More Lows to Come?

The Vechain (VET) price has possibly broken out from a descending resistance line and validated it as support. As long as the current support area holds, the price should continue moving upwards towards the resistance levels outlined below. Breakout or Fakeout? The VET price has been declining since Aug 9, when a high of $0.22 […]

The post Did VET Break Out or Are There More Lows to Come? appeared first on BeInCrypto.

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The Vechain (VET) price has possibly broken out from a descending resistance line and validated it as support.

As long as the current support area holds, the price should continue moving upwards towards the resistance levels outlined below.

Breakout or Fakeout?

The VET price has been declining since Aug 9, when a high of $0.22 was reached. It has been following a descending resistance line since.

VET reached a low of $0.011 on Sept 7 and seemingly began another upward move, only to get rejected and validate the $0.155 area as resistance before moving down to make another low.

After reaching a low of $0.096 on Oct 7, the price created a bullish engulfing candlestick and proceeded to break out from the descending resistance line ten days later. Despite this breakout, the price has not moved upwards much.

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The main support and resistance levels are found at $0.105 and $0.155, in which a breakdown from the former could trigger a very sharp drop towards $0.008.

VET ResistanceVET Resistance
VET Chart By TradingView

Continuation of Upward Movement

Technical indicators on the daily time-frame are bullish but don’t yet confirm the possibility of an upward move.

While the MACD has just crossed into positive territory, the RSI is still below 50. The stochastic Oscillator has made a bullish cross but has failed to continue moving upwards.

VET Resistance Line breakVET Resistance Line break
VET Chart By TradingView

The 6-hour chart is slightly more bullish. Until now, VET has made two failed breakout attempts. Nevertheless, the RSI has shown strength during these failed attempts.

If the price creates another low and then validates the ascending support line, it should break out above the minor resistance area afterward.

VET Resistance areaVET Resistance area
VET Chart By TradingView

VET/BTC

Cryptocurrency trader @Altcoinsherpa tweeted a VET price chart, stating that the price might have reached a bottom near 95 satoshis. She expects an upward movement towards 113 satoshis.

VET MovementVET Movement
Source: Twitter

The price has been hovering around the 92 satoshi area since the tweet, validating it as support.

On the VET/BTC pair, the descending wedge is still clearly intact. However, the price is near the end of the pattern, and both the RSI and the MACD have formed significant bullish divergence.

Therefore, a breakout towards the 140 satoshi resistance area is the most likely option. This would also fit with the possible VET/USD breakout.

VET/BTCVET/BTC
VET Chart By TradingView

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Source: https://beincrypto.com/did-vet-break-out-or-are-there-more-lows-to-come/

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How Strong Is Bitcoin’s Push Above $12,000?

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Who has the most recent bitcoin move right, the bulls or the bears? 

Our main discussion: bulls vs. bears as bitcoin passes $12K

Someone recently tweeted, “Bitcoin price has never been this high with such bearish sentiment.” 

On this episode, NLW looks at the bullish case (growth in open interest on CME backed by strong macro narrative around stimulus) and bearish case ($12K BTC sell wall and bleeding from alts and DeFi).

Source: https://www.coindesk.com/how-strong-bitcoin-push-12000

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With COMP Below $100, a Look Back at the ‘DeFi Summer’ It Sparked

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The curtain has fallen on DeFi Summer – not that the sector is done, but the wild buzz seems to be.

The changing of the seasons is marked by Compound’s governance token, COMP, falling below $100 early Tuesday. COMP kicked off the yield farming craze way back in June as a new mechanism for luring assets onto what is now the sixth-largest decentralized finance (DeFi) platform, and the first to briefly topple MakerDAO as the industry leader.

COMP has been hovering right around $100 since a big drop on Oct. 6 brought it down close to our arbitrary threshold, and it’s finally lost that sweet third order of magnitude.

Compound Labs founder Robert Leshner declined to comment for this story.

How DeFi got here

After Compound’s June surge, things started to get interesting as DeFi’s money legos began stacking up.

First introduced on Ethereum by Synthetix in July 2019, “liquidity mining” is what inspired this summer’s boom. The prospect of giving people a fresh new token above and beyond normal returns on deposits quickly drove COMP up higher than anyone had seemed to anticipate. On June 21, COMP reached its zenith at $372. 

Read more: First Mover: Compound’s COMP Token More Than Doubles in Price Amid DeFi Mania

The governance token’s runaway success led other dapps to follow suit, such as with the multi-token pool maker Balancer, the non-fungible token (NFT) marketplace Rarible and others.

But events would quickly become comical in ways they only can in crypto. 

First, a prominent automated market maker (AMM) would have its governance token accidentally released early, then vegetable coins would take over everyone’s imagination and the final drama would introduce vampirism and a convoluted exit scam.

Ultimately, leading AMM Uniswap would release its governance token, UNI, with its own liquidity mining scheme. 

“I personally consider UNI issuance is the peak of this farming movement,” Primitive Ventures’ Dovey Wan told CoinDesk in an email.

Endless summer

The takeaway from DeFi Summer for Wan is the power of the fair launch narrative that was kicked off by Yearn.Finance. Yearn had already been a tool to optimize returns when COMP was first released, but the excitement engendered by yield farming sparked a lot of innovation.

Yearn’s creator, Andre Cronje, created the YFI governance token and urged liquidity providers to earn it rather than buy it. Setting aside no pre-mine for himself, this sent already hyped-up yield farmers into overdrive.

Read more: What Is Yearn Finance? The DeFi Gateway Everyone Is Talking About

“The biggest value of this hype is bringing the fair launch back to the game,” Wan wrote. “The fundraising or bootstrapping liquidity mechanism itself, through farming, quickly gains mindshare and adoption. This will definitely bring value to the industry as an alternative to the previous VC presale game.”

Other observers are taking a similarly long view on the sector’s staying power.

“It’s obvious to anyone who studies this space that DeFi has major structural advantages compared to CeFi,” Spencer Noon, an investor at DLT Capital, told CoinDesk in an email. “This is because, among other factors, protocols don’t have employees, physical locations, or incur other expenses that traditional finance companies do.”

In a provocative twist, the final rays of DeFi Summer coincided with U.S. enforcement actions against crypto exchange BitMEX that cast a new light on the benefits of decentralization.

“If we look at the big picture, the recent indictment from DOJ on BitMEX is another alert why we need a true decentralized finance alternative where it can have minimal exposure to potential regulatory haul,” Wan wrote, who added that bubbles are moments for innovation and adoption. 

Read more: What Is Yield Farming? The Rocket Fuel of DeFi, Explained

Even as DeFi Summer cooled, the coin that kicked it all off held onto value as the narrative it had launched moved on. It wasn’t until Sept. 4 that COMP would sink below $200.

But Kain Warwick, of Synthetix, the firm that first birthed liquidity mining into the crypto lexicon, is undeterred by the cooling of 2020’s DeFi buzz.

He believes that underneath it all, an actual industry has been proven out. 

“[Decentralized exchange] volumes and usage as well as [total value locked] are still 10x+ up from earlier in the year. So while the irrational exuberance has been tempered we are still directionally in a good place in terms of traction,” Warwick said, adding:

“At some point we need to transition from hype to reality. The big difference between this cycle and the previous one is that the reality is here and it is sustainable.”

Disclosure

Source: https://www.coindesk.com/comp-below-100-defi-summer-over

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