China’s regulations for blockchain companies to come into effect in February

Summary:

  • Federal Reserve Bank of St. Louis publishes a crypto-focused article

  • China’s crypto regulations to come into effect in February

  • Top cryptocurrencies start the new week in green

Investors have started Monday’s trading in the cryptocurrency market rather in upbeat moods. Three largest cryptocurrencies - Bitcoin, Ethereum, and Ripple - have begun the new week with some rises. On the other side, some major digital currencies experienced some noticeable losses yesterday. The capitalization of the whole cryptocurrency market stands around $120 billion while Bitcoin accounts for nearly 53%.

Bitcoin (BITCOIN on xStation5) experienced a drop yesterday, but the cryptocurrency has managed to recoup some of these losses since then. The largest cryptocurrency is trading a little below the $3500 handle at press time. Source: xStation5

Federal Reserve Bank of St. Louis publishes crypto article

The Federal Reserve Bank of St. Louis released an article in which the Bank’s economists analyzed a current situation in the cryptocurrency market. In the document, the Bank wrote that the Bitcoin’s has three potential futures - indefinite, infinite appreciation,  zero, or somewhere in between. The writers think the third answer is right. Moreover, the authors noted that altcoins with their constantly expanding supply could be among factors causing Bitcoin’s falls. Fresh cryptocurrencies attract people’s attention, and then they attract even more people in the crypto market.

Ethereum (ETHEREUM on xStation5) saw four consecutive days of declines, but the cryptocurrency, like its bigger peer Bitcoin, has started the second full week of the new year higher. Source: xStation5

Chinese crypto-related regulations to come into force next month

The Cyberspace Administration of China (CAC), which is a Chinese internet regulator, outlined a final draft of crypto and blockchain regulations. The document will come into force on February 15, 2019, and it will provide the guidelines for blockchain companies. The regulations oblige such companies to, among others, record activity of users, and to store them for at least half a year. Moreover, it requires from such entities to deliver such data for the country’s authorities. Companies will be also required to verify users with their IDs and phone numbers. No one should be surprised that these Chinese regulations contain also some rules related to country’s censorship. Let us remind that China banned ICOs and domestic crypto exchanges in 2017.

Ripple (RIPPLE on xStation5) has experienced the highest rise among top 3 cryptocurrencies so far today, and it is trading a little below the $0.32 handle at press time. Source: xStation5
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