ALSO: The Bank of England calls for "enhanced regulation".
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Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. |
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This newsletter was produced by Bradley Keoun. Please let us know what you think of First Mover by replying to this email.
Crypto markets appeared to stabilize on Tuesday even as the fallout continued from June's price plunge – with fresh developments on the regulatory front and an agreement by the crypto lender Nexo to take over its troubled Singaporean rival Vauld. Bitcoin (BTC) was trading up 1.2% on the day while U.S. index futures and European equities fell as fears of an impending recession continued. The euro fell to a 20-year low against the dollar. Some altcoins were outperforming BTC on Tuesday, with Cosmos (ATOM) leading the way, up 7.3%. Polygon's MATIC followed with a 6.1% increase on the day. |
Top 10 coins 24-hour performance. (Messari) |
Meanwhile, concerns over cryptocurrency regulation in Europe are progressing. On Monday, European lawmakers said that non-fungible token (NFT) trading platforms should be made subject to European Union anti-money laundering (AML) laws. The amendment is part of a larger discussion of proposals submitted by European lawmakers. In the U.K, the government has announced it is seeking views from investors, professionals and companies on taxation of decentralized finance (DeFi) activities. According to the statement, the government wants to gather evidence on the taxation of cryptoasset loans and staking. In other news, Samir Shah, previously JPMorgan's head of asset management sales, left the bank to take up the position of chief operating officer at cryptocurrency-focused investment firm Pantera Capital. In early April, Pantera announced plans to close a blockchain fund with about $1.3 billion in committed capital. The London-based crypto lender Nexo announced it has signed a term sheet with Singapore-based Vauld. Pending due diligence, Nexo will acquire up to 100% of the troubled firm. Nexo aims to use the acquisition to accelerate its presence in Asia. |
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Market Moves By Camomile Shumba |
The Bank of England's Financial Policy Committee called for "enhanced regulation" of the crypto asset market to mitigate against potential risks. Noting recent market turmoil, the committee said crypto assets did not yet pose a threat to the wider financial system. They might, however, in the future as they become more integrated into mainstream finance, according to meeting summary notes published Tuesday. The committee focuses on the central bank's role in maintaining financial stability. The collapse of Terra's stablecoin in May and crypto lenders including Celsius and Babel Finance freezing withdrawals this month, have focused regulators' attention on the digital asset industry. That's on top of more than $2 trillion of market cap being wiped out over a period of months. "This underscored the need for enhanced regulatory and law enforcement frameworks to address developments in crypto asset markets and activities," the bank said in its quarterly Financial Stability Report. The Treasury has already announced that the Bank of England is looking into bringing systemic stablecoins into its Special Administration Regime, meaning the central bank would regulate stablecoins that are connected with the wider financial system. A systemic stablecoin backed by a deposit with a commercial bank would introduce "undesirable financial stability risk," according to the report. Read the full story here: Bank of England Committee Calls for Enhanced Crypto Regulation to Limit Contagion. |
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers Biggest Losers There are no losers in CoinDesk 20 today. |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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Where innovators, changemakers, investors and leaders present their best ideas for investing in the future of the Web 3, digital assets, blockchain and crypto ecosystems. Register now. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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