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The Dynamics and Implications of the EU Proposed Framework on the Crypto Market and Crypto Trading
Since Satoshi Nakamoto simplified the dream for a decentralized form of value and currency exchange in 2008, wave after wave of finance-related innovations has emerged. These innovators, with many taking on the roles and responsibilities of crypto-asset issuers and service providers, have found ways to simplify financial transactions and investments.
The majority of these innovators have built on the blockchain system for a distributed ledger technology (DLT) to do amazing things. As such, rather than only technically inclined people having the best of the provisions of the technology, ordinary people have also benefited greatly. Also, the lack of global regulations on the new system has allowed it to flourish, making overnight millionaires of timely miners and investors.
And while the uptake of cryptos in developed and developing countries grows daily, the uncertainties inherent in the system have caused hesitation in some quarters. The EU (European Union) is one of such hesitant parties.
Despite realizing the opportunities for sustainable growth and development that the system promotes, the EU has been mostly silent on maximizing the offerings of the crypto industry. Until the “Proposal for a Regulation for the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937,” an initiative that is 167 pages long and consists of 126 articles, came into being.
This article analyzes this framework proposed by the EU in light of what it means, what the various stakeholders of the crypto industry should expect and an overall estimation of who the proposal is good for.
The EU Regulation Proposal: What It Is
The European Commission published the proposal for a regulation of cryptos and their markets on September 24, 2020. However, the proposal was not adopted until November 24, 2021—more than 12 months later.
The EU’s proposed framework for the regulation of crypto-assets and markets is exactly what it says—an initiative to regulate the activities of the cryptos market and exchanges. However, it is not driven by any intention by the EU to control the industry, only to make it legitimate and trustworthy.
Also, the proposal intends to repair fragmentations in the European regulatory framework. This way, the entire region would have one block of regulatory measures rather than multi-varied national measures.
The Motivations for the EU Initiative
The EU used suggestions from the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) in order to understand the full range of crypto mechanisms. This way, the conclusions can be as final as possible since it is backed by inclusive research.
What the EU wants to do is implement the full spectrum of its Digital Finance package in the crypto market. Once this is in place, Europe will be able to take full advantage of the offerings of cryptos and other crypto-related stuff without subjecting its citizens and economy to the pitfalls of the industry.
As the document reports, “One of the strategy’s identified priority areas is ensuring that the EU financial services regulatory framework is innovation-friendly and does not pose obstacles to the application of new technologies.” As such, the framework’s motivation can be summarized as the need to:
- Tokenize traditional financial assets. Thus, cryptos can be integrated into the EU’s business operations framework and regional market.
- Legalize everything. In this faction, the EU can unify the current crypto operational substructure with current legal frameworks to increase uptake at a continental level.
- Present a unified regulatory charter across Europe. Thus, there wouldn’t be discrepancies in the EU’s attitude to all things crypto-related.
In short, the framework has four primary objectives:
- provide legal certainty,
- support innovation,
- instill appropriate levels of consumer and investor protection and market integrity, and
- ensure financial stability.
The Coverage of the Initiative
The initiative does not cover every form of virtual money and currency. It only takes into consideration crypto-assets and other related assets that are driven by the blockchain distributed ledger technology (DLT). Thus, asset-referenced tokens and e-money tokens are the main punches of the initiative.
Also, the proposal covers two conditions for the operation of the crypto market, particularly for service providers. There is an opt-in option which means that those that want to stay unregulated can remain so. There is also an all-in harmonization option that insists on complete inclusion irrespective of prior plans. The EU insists on the second option.
Furthermore, the proposed regulation places the EBA and ESMA as competent authorities to oversee all activities related to crypto-asset exchanges. Thus, these are the regulatory powers at the forefront that are responsible for implementing the various conditions of the proposal.
The Status Quo of the Crypto Market & Crypto Trading
To understand the core of the proposal, it is expedient to highlight the status quo of the crypto market and the dynamics of its stakeholders and transactions.
Presently, the crypto market is mostly unregulated (which means that there is no central authority supervising it) at least at a global level. By implication, it is an open market where there is a lot of freedom for decision-making.
Also, the extensiveness of the open crypto market means that anybody with sufficient knowledge of blockchains can take advantage of it. As such, there are many coins, protocols, exchange platforms, and more.
While these are the pros of the traditional unregulated crypto market, there are associated cons. Anonymity is a core element of the system, so criminal activity is unavoidable. Hoarding of funds—and whale activity by implication—is also a thing.
What the EU Regulation Proposal Means to Do
What the regulation proposal intends to accomplish is straightforward. It is to bring about harmonization between what cryptos can offer (along with DLT) and the financial obligations of the EU. This is why the legalization of the market and its agents is a leading objective of the proposed framework.
Presented in this manner, the framework has the best interest of crypto stakeholders at heart. For example, payment tokens can be better optimized to “... present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting the number of intermediaries.”
So, the framework bridges decentralized finance (DeFi) with its centralized alternative (CeFi). Thus, what the EU means to do is
- Create a framework for the issuance of services related to cryptos,
- Design a safety net for crypto consumers and investors,
- Reduce the risks of hacking and systemic abuse,
- Provide market integrity, and
- Stabilize the crypto market alongside already existing institutional economic conditions.
What to Expect from the Implementation of the EU Proposal
The crypto market consists of many stakeholders all of whom can be categorized under three classes: crypto-asset issuers and service providers; miners and crypto traders; and investors.
Effect on Providers and Platforms of Crypto Trading
The Good Side of the EU Framework on Crypto Service Providers
- The security afforded by the framework will let providers better scale their businesses: They will be able to cover more geographical and commercial areas. This will attract more long-term investments and larger capital from corporate bodies.
- The system is more stable: As such, crypto-asset issuers and service providers will be able to offer better guarantees of returns on investments.
- Cutbacks on hacking and fraudulent activities: The framework will ensure that blockchains are better protected against criminal activities. So, service providers might not need to spend as much on security protocols.
The Bad Side of the EU Framework on Crypto Service Providers
- Far less freedom of operation: Crypto-asset providers will be tasked with having registered offices in the EU Member States, for example. Thus, the market will no longer be as open as Nakamoto’s model suggested.
- Timed licenses: Service providers’ authorization to operate can be withdrawn if they fail to meet certain conditions. This is essentially a noose on the necks of these providers.
- Greater caution with whitepapers: Whitepapers have to be submitted to authorized powers before publishing. So, service providers can no longer be willy-nilly about their offers.
- No more surprises: Service providers must report all important information before they can be authorized. They have to include information about the issuer, the project, the underlying technology, the risks associated with joining the network, and more.
Effect on Crypto Investors
The Good Side of the EU Framework on Crypto Investors
- Assurance of exchange platform’s seriousness: Investors can rest assured knowing that service providers are competent and dedicated to providing the services promised in their whitepaper.
- Dependable comparison of trading platform’s merits: The portfolios of trading platforms can be compared. The current system does not have this ability since there is no framework that manages to effectively monitor their progress all at once.
- Even playing field for multi-variable investments: Investors can track their fiat and cryptos in and out of the system without a hassle.
- Withdrawal rights: Investors can pull out anytime they want. The proposal emphasizes a right of withdrawal without worrying about withdrawal costs or having to give reasons why they are withdrawing.
The Bad Side of the EU Framework on Crypto Investors
- Limited hoarding capabilities: Crypto investors will not be able to hoard indiscreetly. The system is monitored for any activity that might hurt the majority of crypto users on any platform.
- Rigid accountability: Crypto investors must report their intention to increase their holding of asset-referenced tokens. And this has to be done in writing. The same for whenever an investor wants to reduce the size of their holding.
Effect on Everyday Crypto Traders
The Good Side of the EU Framework on Crypto Traders
- True cross-border transactions. Crypto traders can effectively trade across the EU and treat the entire continent as a single block.
- Tokens and coins are more trustworthy and less volatile (possibly). This is expected since tokens and coins are backed by authorized supervision.
- Better integration with the system. Crypto traders may not have to worry about false advertising since every authorized issuer of crypto-assets would be liable to the EU regulation.
- Withdrawal rights: Crypto traders can decide to discontinue their subscription to any trading platform. No incurred costs, no delay, no justification for the move.
- The system is more user-centric than technology-centric. Everything appears to be in the interest of the consumer. Crypto-related service providers are even tasked with promptly responding to filed complaints.
The Bad Side of the EU Framework on Crypto Traders
- No anonymity: Crypto traders can no longer trade in secret or use anonymous personas. Instead, the KYC (Know Your Customer) protocol will shield the system from such activities.
- Seeming relapse in the financial system. It doesn’t look like much has changed. Instead, the financial system appears to have relapsed.
- Transaction dynamics might deflate: Legislative inclusions might slow down transactions. This is a possibility especially when there are contentions over transactions and the service provider has to participate or cover customer losses.
Overall Conclusion: Is It Good or Bad?
There are clear pros to the proposed EU framework. For one, banks can now work with the crypto industry without fear. The risks associated with anonymity (which is an integral component of the current crypto market) are also reduced substantially.
Also, different crypto regulatory regimes and frameworks across Europe make it difficult to truly utilize the opportunities afforded by crypto applications in the region. A unified framework is good.
Moreover, the framework is great for consumers (that is, crypto investors and traders). Protection right is up there with greater security as the system looks to be customer-centric. Also, market manipulation might become a thing of the past due to the lid that the initiative places on insider information.
However, there are also clear cons. For one, there are many restrictions for the issuers of crypto-assets and crypto-related service providers. These would have to consider every offer to the customer as being liable to cancellation by the EU regulation.
Also, the regulation appears to be true in every sense of the word. This might likely cut down the number of crypto issuers and project developers since they do not all have fleshed-out ideas (and will likely be penalized for it).
Furthermore, the EU framework will ensure that there are fewer surprises now that insider information has to be leaked (in a sense) by the service providers themselves. This should have no significant effect on innovation, but there is no guarantee that it won’t.
Overall, the EU framework is as promised: a great development for crypto users/consumers. But it is not so great for crypto service providers. Also, the proposed regulations are strong and can be interpreted as having upended the core quality of the blockchain revolution.
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Big Trading Opportunities with Kyrrex: How to Maximize Your Profits in Cryptocurrency Trading
The cryptocurrency market is a rapidly evolving landscape that offers big opportunities for profit. However, navigating this market can be challenging, particularly for those who are new to the space. In this article, we will explore how you can maximize your profitability in cryptocurrency trading by taking advantage of Kyrrex's wide range of trading opportunities.
The Relationship Between Open Crypto Trades and Profitability
Open trades are trades that have not yet been closed. These trades can have a significant impact on profitability, as they represent potential gains or losses. In general, having more open trades can increase profitability, as long as they are managed effectively.
One way to manage open trades is to use stop-loss orders. A stop-loss order is an order that automatically closes a trade when a certain price is reached. By using stop-loss orders, traders can limit their losses and protect their profits.
For example, if a trader buys a coin at $10,000 and sets a stop-loss order at $9,500, the trade will automatically close if the price falls to $9,500. This can help the trader get out of a bad trade before their loss becomes bigger.
Another way to manage open trades is to stay up-to-date with market trends. By staying informed on market trends and using technical analysis, traders can identify potential trading opportunities early and make informed trading decisions.
For example, if a trader notices that the price of a particular cryptocurrency is trending upwards, they may decide to open a long position (i.e. buy the cryptocurrency) with the expectation that the price will continue to rise.
However, it is important to remember that open trades are never risk-free. If the market moves against the trader, they may end up losing money on the trade. To minimize this risk, it is important to use appropriate risk management strategies, such as setting stop-loss orders and diversifying your portfolio. Stop-loss on a winning trade locks in your profits while a diversified portfolio helps to spread risk around.
The Importance of Trading a Wide Range of Cryptocurrencies
Trading several cryptocurrencies, instead of just one or a few, is essential for maximizing profitability. By limiting yourself to a small number of cryptocurrencies, you are potentially missing out on gains that could be made by trading in other coins. Additionally, trading more cryptocurrencies can help to minimize risk, as losses in one coin can be offset by gains in another.
Here are some benefits of a diverse cryptocurrency portfolio:
- Increased exposure to potential gains: By trading in a diverse range of cryptocurrencies, traders can increase their exposure to potential gains in the market.
- Minimized risk: By trading in a diverse range of cryptocurrencies, traders can minimize their risk by offsetting losses in one coin with gains in another.
- More opportunities for profit: Traders can open more orders in more cryptocurrency pairs, which increases the potential for profits.
Wide Crypto Trading Opportunities with Kyrrex
Kyrrex is a leading crypto-fiat platform that offers comprehensive services for individuals and institutional clients alike. With its advanced trading, storage, and payment technologies, Kyrrex is designed to meet the needs of modern cryptocurrency enthusiasts.
One of the main advantages of Kyrrex is its wide range of trading opportunities. Users can access the built-in trading terminal, which allows for seamless transactions in cryptocurrency pairs. Currently, Kyrrex offers a total of 20 currency pairs, including popular options such as AVAX/USDT, ETH/USDT, and XRP/BTC. By offering a diverse range of currency pairs, Kyrrex enables users to trade in a way that best suits their needs and preferences.
The Kyrrex trading platform boasts flexible functionality. Users can easily analyze and track quotes around the clock, select limit and market orders, and enjoy reduced trading commissions. These features make it easy for users to make more trades and analyze market trends, thereby increasing the chances for gains.
In addition to its trading capabilities, Kyrrex offers a comprehensive set of features to help users manage their cryptocurrency assets. With its state-of-the-art storage technologies, Kyrrex ensures the safety and security of user funds. Users can also take advantage of the platform's advanced payment technologies, which enable them to make and receive payments in a variety of currencies.
Conclusion
Maximizing profitability in cryptocurrency trading requires a combination of trading in a wide range of cryptocurrencies and effectively managing open trades. Kyrrex's wide range of trading opportunities, advanced trading tools, low trading fees, and real-time market data make it an ideal platform for those looking to engage with the cryptocurrency market.
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BTCUSDT: Analyzing Bitcoin's Performance on TradingView
Bitcoin (BTC) has emerged as one of the most popular cryptocurrencies in the world, and its value has skyrocketed in recent years. As a result, traders and investors have become increasingly interested in BTCUSDT trading on platforms like TradingView.
TradingView is a popular charting platform that allows users to analyze and trade financial markets. With BTCUSDT trading, traders can track the performance of Bitcoin against Tether (USDT), a stablecoin that is pegged to the US dollar. This pairing is commonly used on crypto exchanges, and TradingView provides comprehensive BTCUSDT charts and indicators for traders to make informed decisions.
BTCUSDT Price Action
BTCUSDT's price action has been volatile, with sharp price swings and fluctuations. However, the overall trend for BTC has been bullish, with the cryptocurrency hitting all-time highs in recent years. TradingView's BTCUSDT charts provide traders with the ability to track BTC's price movements in real-time, as well as view historical price data.
Technical Analysis on BTCUSDT TradingView
Technical analysis is a popular method for traders to analyze financial markets, and BTCUSDT trading is no exception. TradingView provides a wide range of technical indicators and charting tools to help traders analyze BTC's performance.
One popular indicator used in BTCUSDT trading is the Moving Average Convergence Divergence (MACD) indicator. This indicator can help traders identify trend reversals, as well as potential entry and exit points. Additionally, traders can use other technical indicators like Relative Strength Index (RSI), Bollinger Bands, and Fibonacci retracement levels to gain further insight into BTC's price action.
Fundamental Analysis on BTCUSDT TradingView
In addition to technical analysis, fundamental analysis is also important in BTCUSDT trading. Fundamental analysis involves analyzing the underlying factors that affect BTC's price, such as adoption rates, regulatory changes, and economic events.
TradingView provides traders with access to news feeds and economic calendars, which can help traders stay up-to-date on the latest developments that may affect BTC's price. Additionally, traders can use TradingView's social networking features to discuss and share information with other traders and investors.
Final Thoughts
BTCUSDT trading on TradingView offers traders a comprehensive set of tools and indicators to analyze Bitcoin's performance. With both technical and fundamental analysis options available, traders can make informed decisions about when to enter and exit the market. However, as with any financial market, BTCUSDT trading carries risks and traders should exercise caution and conduct their own research before making any investment decisions.
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Top 5 Crypto Charities
There are two sides to everything, though humans tend to focus on one side of the coin. The latest weapons can help through deterrence, not just destruction. Artificial intelligence is an incredibly useful tool despite its dangers. And cryptocurrency, just like everything else, can be a force for good in the world.
Crypto is about PnLs, market and limit orders, DeFi and staking, coin offerings and L1s. It is also about borderless payments which can facilitate goodwill donations by anyone from anywhere to any organization that works towards a noble cause.
The philanthropic space, just like health, finance and sports, has realized the benefits of adopting crypto. Some of the best known global and regional charities have created channels for crypto donations.
Bitcoin, Ethereum and stables like USDT are the most popular coins supported by charities accepting crypto. Depending on the type of crypto charity, other popular digital coins like Dogecoin, Monero, Bitcoin Cash and Litecoin may also be accepted.
So if you're moved to reserve some of your cryptocurrency holdings or trading gains for a worthy cause, there are lots of charity crypto projects that would be happy to receive your donation
These crypto-affiliated charities vary by mission. Some are dedicated to helping oppressed peoples in war-torn areas like Ukraine to stand up to the aggressors. Others utilize blockchain technology to support next-gen ideas and technology like effective altruism and AI.
These organizations all have noble goals and have thrived through the benevolence of citizens who use some of their crypto for charity. This article presents 5 reliable and dependable crypto charity projects. So if you're looking for charities that accept crypto, you've come to the right place.
1. Electronic Freedom Foundation
The Electronic Freedom Foundation (EFF) is a U.S. 501(c)(3) nonprofit that has a mission to defend civil liberties and human rights both online and offline, but especially online. It supports outreach and legislation that protect digital rights and provides funding for projects that promote the rights of the individual to free expression in the digital space.
The EFF sees increased legislation and user restrictions in the digital age as a wall that stifles creativity and infringes on the rights to liberty. Thus, it campaigns hard against moves that seek to restrict people's rights and freedoms, especially online. The organization has a long and proud history of canvassing change and is one of the best charity crypto projects around. It accepts Bitcoin, Bitcoin Cash and Ethereum from individual donors and you can also elect to receive some cool swag if you donate at least $100.
2. Kyrrex Charity
The start of the war in Ukraine has led to a groundswell of governmental, institutional and individual support for the beleaguered country which continues to maintain its independence in the face of overwhelming odds. The Kyrrex Charity is the social arm of Kyrrex, a regulated crypto-fiat ecosystem. Its goal is to work towards the war's end and victory for Ukraine by supporting the country's civilians, volunteers and defenders through financial aid.
The foundation organizes charity events and fundraisers all over the western world to raise money which it then distributes to various agencies across Ukraine.
Because of the difficulties caused by the war, crypto donations to Ukraine is one of the best ways to get money across to those who need it on the ground. That is why the Kyrrex Charity's main vehicle is a crypto charity fund. Benevolent individuals and organizations can directly donate Bitcoin, Ether and USDT through the foundation's Ukraine crypto donations wallets and be rest assured the money will be used for a worthy cause.
So if you have excess coins gathering dust in your wallet or cold storage and wondering how to donate crypto to Ukraine, you can send your coins to a Kyrrex Charity wallet and sleep easy knowing you've just done a great deed for humankind.
3. UNICEF Cryptocurrency Fund
Unicef, or the United Nations Children Fund, works in 190 countries across six continents to help children overcome developmental and geographical challenges and achieve their full potential from early childhood to adolescence. It's long been one of the most visible agencies of the UN and its impact has been felt in every corner of the globe for decades.
In 2019, UNICEF launched a crypto fund to simplify fundraising and grants distribution and reach their networks of donors and beneficiaries faster than the complicated web of traditional finance would allow. Donors can send BTC and ETH directly to the UNICEF CryptoFund. To date, the fund has received 8 BTC and 2527 ETH which is distributed to open-source frontier tech solutions showing promising results.
All donations made by the funds are done in BTC and ETH only and capped to $100k. Through this scheme, UNICEF has invested 52 ETH in a digital cash and voucher transfer platform in Nigeria, 43.5 ETH in a platform for digital healthcare savings in DR Congo, and 21 ETH in a tool for visual eye tests to detect vision disorders among children in the UAE.
4. The Giving Block
Would you like more control and flexibility over your charity crypto donations? Then you can check out The Giving Block. This donations service is like a crypto charity marketplace that allows you to give crypto to a nonprofit, charity, university, faith organization, environmental NGO or any other mission-driven agency of your choice.
The Giving Block emphasizes choice and flexibility. Donors are free to choose any of the 100+ organizations that accept crypto donations through the service. You can use their search tool to filter available organizations. For example, a "crypto donations Ukraine" search brings up the Ukrainian American Coordinating Council, the US-Ukraine Foundation and similar organizations. You can also switch to "Impact index funds" and donate crypto to a particular cause, such as the war in Ukraine, women and girls empowerment, or arts and culture.
Another big draw of The Giving Block is the versatility provided for those who use the platform to donate crypto to charity. Most blockchain-positive philanthropic platforms support just a few cryptocurrencies. But on The Giving Block, you have your pick of more than 70 crypto options to donate with such BTC, ETH, USDC, USDT, DAI, MAKER, AVAX, SOL, and many more.
5. The Tor Project
Tor, or The Onion Router, is the free and open-source browser that enables anonymous communication through a network of volunteer nodes spread across the world. The Tor project and its browser allow users to bypass censorship and restrictions on internet usage. It generates a semblance of digital privacy and independence in an environment rife with governmental policy.
The Tor Project accepts donations in crypto and other avenues to keep the Tor network running and protected against intrusion by global institutions and governments. Tor accepts crypto donations in 9 currencies including Bitcoin, Ethereum, Dogecoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, and ZCash.
Donating Crypto to Charity
If you'd love to donate crypto to charity, you can try one of the organizations on this list or another one that accepts digital currencies. You can donate your crypto directly—no need to convert into a stablecoin or fiat money first. Moreover, if you have a stablecoin in your portfolio, you can donate that. The price of a stable fluctuates less compared to traditional cryptocurrencies, which can benefit the charity of your choice more than a volatile coin would.
Making donations to a charity actually helps fulfill one of the founding principles of cryptocurrencies—anonymity. By donating through crypto, you show that you truly care about a cause and aren't donating just to look good in the news or on social media.
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