Crypto Market Meltdown Forces Regulatory Hands Of EU

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As major market shake-ups and upsets continue in the crypto currency world, the European Union appears to have woken up to the need for regulatory oversight and investor protections.

Consequently, last Thursday the European Parliament’s Council, after hours of negotiations in Brussels, has agreed on the contentious topic of regulating crypto-asset transfers.

The development came on the day when about 82,258 BTC trades worth US$227.32million have been liquidated, raising the level of fear from 13 to 11, signalling extreme fear among investors.

The continental regulatory intervention is also coming at the backdrop of the institutions finalized measures aimed at stamping out
money laundering in crypto a day earlier.

The new law, known as Markets in Crypto-Assets (MiCA), is the first attempt at creating a comprehensive regulatory framework for digital assets in the region.

Crypto Market Meltdown Forces Regulatory Hands Of EU

EU lawmaker, Stefan Berger, said the rules will “put order in the Wild West of crypto assets.”

The new regulatory framework would compel cryptocurrency issuers to obtain a MICA license with a predetermined capital base and adhere to consumer protection standards. While they are scheduled to go into effect in 2023, analysts expect the proposed agreement will be met.

However, the agreement should include the issuance of coins, their underlying assets, and market manipulation surveillance.

According to a recent Twitter poll by Plan B, 32.6 percent of the sample survey indicated that bitcoin’s bottom would be between $10,000 and $15,000. Bitcoin’s daily returns plunged more than -3.66% from -0.79% yesterday, trading in the US$19,299.79 and US$20,537 area.

Furthermore, the drop in the price of BTC has caused other significant coins to fall in the last 24 hours, with ETH down by -6.71%, BNB fell by -4.75%, and XRP down by -4.56%. Analysts predict the bearish trend will continue if BTC fails to cross the US21,000 price level.

Nigeria is already heavy on crypto industry as a major market worldwide.

According to a report by Chainalysis, a blockchain data platform, the cryptocurrency market in Nigeria and other African countries grew by 1200 per cent in 2021. The firm added that Nigeria is the sixth leading country in the world in terms of cryptocurrency adoption as a result of its peer-to-peer monetary systems.