Cryptocurrency newsletter: Crypto industry shrinks in the US

Summary:

  • The US sees a steady decline of the crypto industry
  • Iran fails to issue licences for importing of crypto mining equipment
  • Bitcoin tests its major technical level

The US no longer conducive to crypto industry

There is no doubt that the United States, as some Asian countries alike, is among the most important countries when it comes to developing new technologies. And, blockchain is undoubtedly such a new technology which keeps evolving. However, the recent trends signal that the cryptocurrency industry is constantly shrinking in the world’ largest economy as some major companies have already taken decision to withdraw their businesses from the country. What have been reasons to take such a decision? We may single out the hostility of governmental institutions to the crypto industry with the Congress and the Senate being on top of them. Moreover, the latest negative salvo from US President Donald Trump regarding cryptocurrencies has been the final straw for crypto enthusiasts. As far as crypto companies are concerned, Binance has already withdrawn its crypto trading services from the US. In turn, those companies which serve US customers - BitMEX and Bitfinex - are facing serious regulatory issues, and are under investigation of the US agencies.

Ethereum is testing the crucial support nearby $200. This level provided help for buyers several days earlier, hence some of them may still hope the scenario will repeat itself again. Source: xStation5

Troubles of crypto miners in Iran

According to information from Cointelegraph.com, Iran has not issued appropriate licenses allowing crypto miners based to import digital currencies mining equipment into the country. The reason has been the absence of approval from the government. Let us remind that in general importing of crypto equipment into the country is banned, however, the authorities have determined a tariff for imports some of them which are related to computers and central processors. Here, it is worth recalling the latest words of Iran’s Minister for Information and Communications Technology (Mohammad Javad Azari Jahromi) who suggested that the country has become “a haven for crypto miners” adding that “The business of ‘mining’ is not forbidden in law but the government and the Central Bank have ordered the Customs Bureau to ban the import of [mining machines] until new regulations are introduced.”

Bitcoin keeps tumbling

Technically the price of the most famous digital currency does not look as if it would stop falling any time soon. At the time of preparing this commentary, the Bitcoin price is testing its crucial support placed in the vicinity of $9490 which coincides with the 61.8% retracement of the latest upward move. A break below this line would see the price declining even toward the lower bound of the bearish channel.

Bitcoin tests its key support which could open the way for new falls. Source: xStation5

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