Two years after it was first proposed, the European Union has passed a comprehensive crypto regulation. preliminary ballot in the European Parliament. Combined with the Markets in Crypto Assets Regulation (MiCA), the Transfer of Funds Regulation (TFR) aligns digital assets with traditional financial transactions.
Following Monday’s 28-1 vote in favor, EU Council officials should approve it by the end of the month and enter into force in 2024. When the news hit the market, it fell below the two-week low of $19,000.
What does the TFR Act include?
In line with traditional finance, money transfer regulations set requirements for all digital asset transactions to be traceable. Specifically, suspicious transfers can be blocked under anti-money laundering (AML) frameworks when passing through third-party platforms.
These third parties, such as exchanges, are known as Crypto Asset Service Providers (CASPs). Formerly the Financial Action Task Force (FATFMore) named them virtual VASPs. If we receive a request from an authority, we are obliged to source the transaction from both sides of the transfer.
However, this TFR rule does not apply to non-custodial wallets (non-hosted) for P2P transactions. Nonetheless, even crypto ATMs fall within the scope of CASP obligations. If transactions take place between CASPs, they are obligated to store all information in a GDPR compliant manner.
However, if the transaction value is less than $971.72, CASP to non-custodial wallets do not require the wallet owner to verify ownership.
What does the MiCA Act include?
The Markets in Crypto Assets Regulation (MiCA) significantly expands the powers of the European Securities and Markets Authority (ESMA), the US equivalent of the SEC. This agency has the power to regulate whether a cryptocurrency project’s white paper is sufficient to launch an ICO.
In addition, ESMA monitors CASPs with over 15 million customers. Similarly, stablecoin issuers must register and prove they have sufficient capital to redeem their stablecoin. If not issued in the euro or any other EU Member State currency, its supply is restricted.
Other CASPs, such as cryptocurrency mining companies, must disclose their energy consumption and display it prominently on their website.
In fact, under MiCA, the new crypto/web3 venture has produced a white paper covering price manipulation, consensus algorithm manipulation, price distortion by pseudonymous whales, hacking attempts, and other consumer safety measures. need to do it.
sometimes SEC investigates NFTs as securities, NFT and DeFi are not covered by MiCA. However, regulation of this space is left to his ESMA. Eighteen months after its enactment, the European Commission, in collaboration with ESMA and EBA (European Banking Authority), will produce a report on these markets.
Bitcoin Price Temporarily Drops Below $19,000 Support
Bitcoin’s price bottom has been hotly contested during this year’s bear market. In June, Bitcoin endured its first test, falling to $17,600 before reversing. Despite this, Bitcoin’s downtrend line has yet to break and broke below his $19,000 key support level of the week on Tuesday.
However, some traders have pointed out that Bitcoin’s downtrend is similar to the 2019 period and uses the don chain channel. It can be considered as bearish extremes and used to identify potential reversals.
Whether or not to view this trend as an accumulation opportunity is a market question.Then this depends on Fed rate hike Expected to come in November. Recently, billionaire hedge fund manager Paul Tudor said that his portfolio is permanently diversified in Bitcoin.