Crypto SWOT: Turkey wants increased regulatory oversight of cryptocurrencies


Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Sweet SOL, up 1,027%.
  • Sumitomo Mitsui Trust Holdings is partnering with a Japanese crypto firm to create a trust company to manage digital assets for institutional investors, writes Bloomberg. The bank signed a memorandum of understanding with cryptocurrency exchange operator bitbank inc. to offer custody services for public blockchain-based crypto assets, including NFTs.
  • Bitcoin is regaining its dominance in the cryptocurrency universe. It now accounts for 44% of the total crypto market value, the most since October 2021. Bitcoin’s renewed hegemony mirrors how the collapse of stablecoin TerraUSD earlier this month has devastated smaller tokens like Avalanche and Solana, writes Bloomberg. .

weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Tifi Token, down 100%.
  • Bitcoin approached the $30,000 level it has been hovering around since the collapse of algorithmic stablecoin TerraUSD triggered a cryptocurrency selloff. Bitcoin has struggled in recent weeks as inflation remains elevated even with central banks in rate-hike mode, raising the prospects for further monetary tightening, Bloomberg writes.


  • Bitcoin may be making tepid moves of late, but that doesn’t mean investors have become any less anxious about the prospect of further declines for the largest cryptocurrency. The coin’s put-to-call ratio hit a 12-month high at 0.72, meaning many traders are loading up on hedges in case it embarks on another leg down, and their losses deepen. , according to Bloomberg.

Opportunities

  • British regulators intend to broaden the application of cryptocurrencies and make stablecoins a payment method, according to Cointelegraph. During the Queen’s annual address, Prince Charles briefed Parliament on two bills that will support “the safe adoption of cryptocurrencies” and “create powers to more quickly and easily seize and recover crypto assets.”
  • The drop in cryptocurrency prices and the collapse of the TerraUSD stablecoin are not deterring venture capitalists who still see a lot of promise in the industry. In the latest example of that commitment, Andreessen Horowitz said Wednesday that she raised a $4.5 billion crypto fund, the largest in the industry to date, writes Bloomberg.
  • Binance Holdings has received regulatory approval for a local entity from Italian authorities, three weeks after getting the go-ahead from the French government, writes Bloomberg. The world’s largest cryptocurrency exchange by trading volume is one of 14 virtual asset operators registered by the Organismo degli Agenti e dei Mediatori (OAM), which oversees cryptocurrency operators in Italy.

threats

  • The collapse of one of decentralized finance’s most ambitious experiments has wiped out more than $83 billion of the sector’s total value, as investors fled for safer havens, writes Bloomberg. A drop in the prices of the TerraUSD stablecoin, or UST, and its sister token Luna in the first half of May sent shockwaves through the DeFi sector, the article explains. Total value locked across all major protocols has plummeted to $112 billion from $195 billion at the start of the month, data from DeFi industry tracker Llama shows.
  • Turkey is drafting legislation that would establish more control over the cryptocurrency market and possibly impose a tax on some transactions involving digital assets, writes Bloomberg. President Erdogan’s ruling AK Party is expected to submit bills to parliament next week setting new rules for local cryptocurrency exchanges, Turkish officials familiar with the matter have said.
  • Europe’s top securities regulator has warned that rising inflation may drive retail investors into risky crypto assets and called for a formal legal framework to govern the industry across the bloc. Regulators are ramping up their pressure on cryptocurrencies amid choppy market action, with Bitcoin down 58% and Ether down 62% from their November highs. The European Central Bank has stepped up calls for tighter regulation after the TerraUSD stablecoin plummeted from its expected peg to the dollar earlier this month, according to Bloomberg.




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