Over the last week, there were several events around the globe that caused an impact on the cryptoeconomy.
The week began with the market still excited by new gains in the Market Cap, which had shifted away of the $500 billion USD mark since January. Bitcoin, owner of a large part of the market, exceeded the $11,000 barrier and seemed to continue growing; but everything changed suddenly.
All this ups and downs left something very clear: The digital market is not for amateurs, since all the early week turbulence caused a 13 percent loss of its capitalization, while Bitcoin fell aroud 10 percent.
Knowledge is the key to success of every investor. Is extremely important to be up-to-date of all the news that could influence the market; that’s why here is a summary of all the main events from last week that could have an impact in the days to come.
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Nikkei Asia Review – Japanese police said last Thursday they received reports on 669 cases of suspected money laundering linked to cryptocurrencies from virtual currency exchange operators between April and December of 2017. Bourse operators are obliged to report transactions suspected of money laundering following a revision last April of a law to prevent the transfer of criminal proceeds.
Bloomberg – United Nations believes that Blockchain could be used to replace some banking services and keeps promoting the use of this technology to fund the World Food Program. So far, the system has enable money transfers to refugees and vulnerable people in the Middle East and Africa. It has also reduced the organization’s bank wire-transfer costs to a minimum.
Criptomonedasfacil – After the Venezuelan government launched Petro, President Nicolas Maduro announced the creation of another digital currency, Petro Gold, with the backing of another Venezuelan wealth: gold. This move has fueled rumors that these new cryptocurrencies are a scam. The country is already planning the creation of a cryptocurrency-oriented Treasury department.
Cointelegraph – Israel has confirmed that cryptocurrencies will be taxed as properties and not as currencies. While making the announcement, the Israeli government said that crypto will be taxed by capital gains, with rates between 5 and 20 percent, and up to 17 percent in mining and trading digital coins.
The Wall Street Journal – The leader of the regulatory clampdown of cryptocurrencies in South Korea dies. The dead of Jung Ki-joon, 52, cast a cloud of uncertainty over the regulatory future in the country since he was the only one in charge of that job. Up until his dead, the country was headed to a total regulation of Exchanges.
GuiadoBitcoin – Bank of America says cryptocurrencies are a threat to their business model. Last Thursday the Securities and Exchancge Comission (SEC) received a briefing enlisting a series of economic, geopolitical and operative risks that could threaten Bank of America over the new fiscal year. It marks the first time that cryptocurrencies are mentioned in such document.
Good luck in this new week!
By Thiago Barbosa