Belgium to Introduce New Crypto Ad Regulations

Overview

• Belgium’s Financial Services and Markets Authority (FSMA) is set to introduce a new set of crypto ad regulations by May 17.
• Companies sponsoring crypto advertisements in Belgium must submit it to FSMA before any mass campaign.
• The current market research by FSMA showed that most investors in the country are in it for the money, and 80% are men.

Regulations on Crypto Advertising

Belgium’s Official Gazette recently published that companies sponsoring crypto advertisements must submit them to its financial regulator FSMA before any campaign — this means that adverts targeting at least 25,000 customers must be submitted to the regulator. Additionally, their ads need to be accurate and contain mandatory risk information.

Jean-Paul Servais‘ Statement

Jean-Paul Servais, the chairman of FSMA reportedly said: “To better protect consumers, the FSMA is stepping up the pace when it comes to supervision and financial education. Thanks to the new regulation, the FSMA will be able to check whether advertisements for virtual currencies are accurate and not misleading and whether the advertisements contain the compulsory warnings of risk.“

Recent Developments in Crypto Regulations

Belgium has become one of many European countries introducing new crypto ads regulations; others include UK who have also imposed restrictions on crypto ads. However, a former minister of Belgium Johan Van Overtveldt recently called for a total ban on cryptocurrencies amid turmoil in banking sector.

Conclusion

In conclusion, Belgium is introducing new crypto ad regulations which will help protect consumers from misleading information or risky investment opportunities that may arise from marketing campaigns related to cryptocurrency investments. It remains uncertain if these regulations will reduce investor interest or lead more people into investing into cryptocurrencies during times of economic uncertainty.

• S&P 500 has gone into negative territory YTD while Bitcoin is up 35% YTD.
• Chaos in bank stocks as some are halted for volatility, with Western Aliance sinking a record 76%.
• Charles Schwab (SCHW) was also halted for volatility, dropping 41% to the lowest on record.

S&P 500 Goes Negative YTD

The S&P 500 index has gone into negative territory Year-To-Date (YTD), currently standing at -0.19%. This compares to Bitcoin which has surged by 35%, continuing its bull run.

Bank Stocks Halted For Volatility

The chaos in bank stocks caused some to be halted due to high levels of volatility. Western Aliance recorded a record drop of 76%, and were subsequently halted due to this volatility. The KBW index fell 4% to its lowest since November 2020 and First Republic Bank saw a record 67% drop at the open. Charles Schwab (SCHW) was also halted, dropping 41% to the lowest on record.

Assets & Share Prices

Assets have been changing over time, with Trading View recording Bitcoin up 35% YTD and both Nasdaq and TLT up over 7%. Bank share prices have also been recorded by Trading View, with significant drops seen at the opening of some banks such as Western Aliance’s 76%, First Republic Bank’s 67%, and Charles Schwab’s 41%.

Analysis from CryptoSlate Research Analyst James Van Straten

James Van Straten, Research Analyst at CryptoSlate commented that Bitcoin is “the greatest invention of the 21st century”, seeing it as a freedom and technology maximalist instrument. He believes that the current surge in price is just the beginning of Bitcoin’s growth potential in 2021 and beyond.

Disclaimer

CryptoSlate takes no responsibility should anyone lose money trading cryptocurrencies or investing in any project mentioned within this article. All readers are advised to do their own due diligence before taking any action related to content within this article

• Bitcoin’s net emissions have decreased for the third month in a row, according to new data.
• This drop can be attributed to Marathon Digital, one of the largest public Bitcoin mining companies that recently announced they will deploy 133,000 miners powered by renewable energy sources.
• Research from Daniel Batten of CH4Capital shows that U.S. Bitcoin mining net emissions dropped from 35.3 megatons of CO2 in December 2022 to 32.04 megatons of CO2 in February 2023.

Bitcoin Mining’s Environmental Impact

The environmental impact of Bitcoin mining has been a major concern lately, especially in the U.S., as a number of large mining operations were established due to low energy prices and loose regulations. Research from Daniel Batten of CH4Capital shows that U.S. Bitcoin mining net emissions dropped from 35.3 megatons of CO2 in December 2022 to 32.04 megatons of CO2 in February 2023.

Marathon Digital Reduces Output

A huge part of this decrease can be attributed to Marathon Digital, one of the largest public Bitcoin mining companies in the U.S.. In December, Marathon announced that around 100,000 newly acquired ASIC miners would be hosted on wind and solar farms with all miners deployed across the US being powered by renewable energy sources; totaling 133,000 miners all together being powered by clean energy sources instead traditional methods such as fossil fuels or coal-based power plants.

Cambridge Index Estimation

Research looked at Bitcoin’s electricity consumption as estimated by the Cambridge Bitcoin Electricity Consumption Index (CBECI) and adjusted it to account for various energy sources miners use; however it should be noted that these calculations rely on Cambridge’s data which tend to overestimate electrical consumption but still show a downward trend remaining in place over time nonetheless

Renewable Energy Push

The push towards renewable energy for US based miners is likely going cause other large scale miners consider using solar and wind power as an alternative method for powering their operations as opposed to traditional methods such as fossil fuels or coal-based power plants; making this an overall positive step forward for reducing carbon footprint associated with bitcoin production worldwide

Conclusion

Overall this research shows us how much progress has been made when it comes to reducing bitcoin’s environmental impact through more sustainable practices such as utilizing green energy sources instead traditional ones; and making sure we are taking steps towards preserving our planet while also advancing technologically at a rapid rate without sacrificing our environment for short term gains

• Morning Consult has published a survey on behalf of Coinbase exchange to reveal that 20% of Americans own at least one crypto asset.
• 80% of Americans perceive the global financial system as unfair, expensive and confusing.
• Crypto ownership is highest among younger Americans with 36% of Gen Z and 30% of Millennials reportedly owning crypto assets.

Coinbase Survey Reveals That 20% Of Americans Own Crypto

A survey conducted by Morning Consult on behalf of Coinbase exchange has revealed that up to 20% (52.3 million) of Americans own some type of cryptocurrency, while 29% (75.5 million) have indicated an interest in purchasing crypto over the next 12 months. This suggests that the adoption rate for cryptocurrency is increasing in the United States.

Americans Perceive Global Financial System As Unfair

The survey findings also indicate that 80 percent of Americans perceive the current global financial system as unfair, expensive and confusing, while 67 percent agree that it needs a complete overhaul. Accordingly, many American investors are shifting their focus towards cryptocurrencies and blockchain technology as they believe that it can make the financial system fairer in the future.

Younger Generations Lead Crypto Adoption

Crypto ownership is highest among younger generations; 36 percent of Gen Z and 30 percent of Millennials reportedly own crypto assets according to the survey data from Morning Consult. This shows that younger investors are more likely to invest in cryptocurrencies than older generations who may be more hesitant or lack knowledge about digital assets.

Americans See Crypto As The Future

Despite recent market decline and widespread contagion, 65 percent of crypto investors in the U.S said that the best days for cryptocurrencies are still ahead us according to the report findings; 70 percent of older investors and over 50 percent of Gen Z & Millennial expressed optimism about how blockchain and cryptocurrency will redefine finance in years to come..

Conclusion

Overall, this survey reveals an increasing trend in crypto adoption amongst US citizens as well as a growing optimism about its potential role within global finance systems going forward

• The Securities and Futures Commission (SFC) of Hong Kong has launched a consultation paper for the public to provide feedback on its proposed regulation of crypto exchanges.
• Exchanges will be required to obtain a license from the SFC and meet certain investor protection requirements.
• Huobi is seeking to obtain a crypto trading license from the SFC in order to expand its services in Hong Kong.

Hong Kong SFC Proposes Regulatory Requirements for Crypto Exchanges

The Securities and Futures Commission (SFC) of Hong Kong has called on the public to provide feedback on its proposed regulation for crypto exchanges seeking to serve retail investors in Hong Kong. Under the SFC’s requirements, all crypto exchanges offering trading services in Hong Kong must be licensed by the SFC. The commission has invited all interested crypto market participants to provide feedback on its proposed regulatory requirements on or before March 31.

Proposed Regulatory Requirements

SFC Chair Julia Leung said that retail investors would only be allowed to trade highly liquid crypto assets, and that the proposed requirements include robust measures to protect investors — following the ’same business, same risks, same rules‘ principles. In addition, the SFC has urged crypto exchanges willing to continue operating in Hong Kong to duly apply for a license, while those who do not intend to apply for a license should close down their operations.

Huobi Moves To Obtain License

Tron founder and Huobi adviser Justin Sun announced on Feb 20th that Huobi will be launched in Hong Kong as it seeks to obtain a crypto trading license from the SFC. With this new license, Huobi will be able to expand its services and offerings to customers in Hong Kong, providing a wider range of options when it comes to cryptocurrency trading and investments.

Public Invited To Provide Feedback

The SFC is seeking feedback from the public about whether or not licensed exchanges should serve retail investors as well as what measures should be implemented in order ensure adequate investor protection. All interested parties are invited submit their thoughts and opinions on these matters before March 31st .

Conclusion

The Securities and Futures Commission (SFC) of Hong Kong has established regulations concerning cryptocurrency exchanges with regards protecting retail investors within their jurisdiction. Cryptocurrency exchanges may now apply for licenses through this new framework set forth by the commission which also prevents non-licensed entities from operating within this space as well. The public is invited by the commission until March 31st 2021to submit their opinion regarding these changes made by them so they can assess how they can best protect those who wish invest into cryptocurrencies within their borders

• The U.S. Securities and Exchange Commission (SEC) enforcement division has issued a Wells notice to Paxos, the issuer of stablecoin Binance USD (BUSD).
• The SEC plans to sue Paxos for allegedly violating securities and investor protection laws as BUSD is considered an unregistered security
• A Wells notice does not mean that the SEC will take enforcement action, as the commissioners of the SEC have to vote in order to authorize any enforcement litigation or settlement by the agency

SEC Issues Notice Against Paxos

The U.S. Securities and Exchange Commission (SEC) enforcement division has issued a Wells notice to Paxos — The Wall Street Journal (WSJ) reported, citing anonymous sources. The New York Department of Financial Services instructed Paxos Trust Co. — the issuer of stablecoin Binance USD (BUSD) — to halt any further creation of BUSD, according to the WSJ.

What is a Wells Notice?

A Wells notice is a formal notice from the SEC which informs the recipient that it plans to bring enforcement actions against them. In this case, they plan to sue Paxos for allegedly violating securities and investor protection laws because BUSD is considered an unregistered security.

Paxos Issued BUSD in Partnership with Binance

Paxos issued 1:1 dollar-pegged stablecoin in partnership with Binance in September 2019. Since then, BUSD has grown to be the third largest stablecoin and seventh largest cryptocurrency — with a market cap of $16.15 billion — according to CryptoSlate data.

What Happens Next?

A Wells notice does not mean that the SEC will take enforcement action automatically; instead, five commissioners have to vote in order for any enforcement litigation or settlement by the agency authorized .Paxos can submit a written response to contest their case as well as why they should not be sued.

Stablecoins on SEC’s Radar

                                                                                                                                           
  When the SEC nearly doubled its Crypto Assets and Cyber Unit in May 2022, it said that stablecoins would be an area of focus. Stablecoins are similar bank deposits or money-market mutual funds accordingto SEC Chairman Gary Gensler

• A single whale withdrew over $120 million in Bitcoin from crypto exchange Gate.io over the weekend.
• This is the second-largest withdrawal in the history of Gate.io, with only 10,000 Bitcoin leaving exchanges across the board.
• Currently, 2.24 million Bitcoin are sitting on exchanges, which is the lowest level in five years.

Single Whale Withdraws Over $120M in Bitcoin

A single entity recently withdrew over $120 million worth of Bitcoin from crypto exchange Gate.io, making it one of the largest withdrawals ever made from the platform and sending a huge amount of coins into circulation.

Weekend Withdrawal Affects Exchange Balances

Roughly 10k BTC have been moved off exchanges this past weekend, resulting in a lower balance on exchanges than usual; currently there are only 2.24M BTC sitting on them – the lowest level in five years according to Glassnode analytics data. Gate.io has now 7K BTC left within its reserves after this massive transaction occurred.

Bitcoin Net Transfer Volume by Size

The net transfer volume by size shows that most of these transfers were quite large; however, some smaller ones still took place as well and may have contributed to this drastic drop in balances across all exchanges worldwide.

Implications for Crypto Market Going Forward

This could be either bullish or bearish news depending on what direction you’re looking at it from: if it’s a whale taking profits off their investments then that could send prices down as they dump their coins; but if they’re preparing to buy back into the market then that could also be seen as a sign of confidence and result in increased prices overall due to increased demand coming from them alone!

Conclusion

It’s clear that cryptocurrency markets are still being heavily influenced by whales who can move large sums of money around with just one transaction – making them powerful players when it comes to price movements and market sentiment alike!

• Bitcoin difficulty has recently hit a new all-time high, rising by 4.68%.
• Difficulty is adjusted automatically within Bitcoin’s core code based on mining activity on the network.
• Higher difficulty means a more secure blockchain as it becomes more energy intensive to attempt to attack the network.

The Bitcoin network recently saw a huge surge in difficulty, a metric which is used to measure the difficulty of mining a new block. The difficulty level reached a new all-time high, increasing by 4.68%. This marks the second largest positive adjustment in the difficulty level in over a year.

The difficulty of mining a new block is adjusted automatically within Bitcoin’s core code based on the mining activity on the network. The difficulty adjusts relative to the miners‘ hashrate in order to keep the time to create a new block to a consistent 10 minutes. This means that should a ‘bad actor’ attempt to onboard miners onto the network to attack it, the difficulty would increase along with the hashrate. This in turn would mean that the attack would have no more than two weeks before the new miners would cause the network to adapt and reduce their impact and control of the network.

The rise in difficulty is a positive sign for the network as it means that the blockchain is becoming more secure. As the difficulty increases, it becomes harder to mine new blocks and also more energy intensive to attempt to attack the network. This increase in difficulty also means that the time to mine a new block becomes more reliable.

Overall, the recent rise in difficulty is good news for the Bitcoin network. It shows that the network is continuing to become more secure and reliable for miners. As the difficulty increases, miners can be assured that the blockchain will remain secure and that their chances of finding new blocks will remain consistent.

• AI tokens are riding a wave of interest due to the capabilities of ChatGPT and other AI applications.
• Over the past 30 days, the top three gainers in the AI sector were Kambria, SingularityNET, and Graphling Protocol which grew 445%, 322%, and 290%, respectively.
• Eight of the top 10 performers are microcaps, meaning they are untested, high risk, and low liquidity.

The artificial intelligence (AI) narrative has grown exponentially in recent weeks, thanks in large part to the success of chatbot ChatGPT. Since its launch, the ChatGPT application has captivated the imaginations of people around the world and has served as a prime example of the potential of AI to revolutionize many aspects of life.

This newfound enthusiasm for AI has also spilled over into the crypto landscape, leading to a newfound interest in AI tokens. In the past 30 days, the top three gainers in the AI sector have been Kambria, SingularityNET, and Graphling Protocol, which have all seen impressive gains of 445%, 322%, and 290%, respectively.

However, while the potential upside of AI tokens is high, so too is the risk. That’s because eight of the top 10 tokens in the AI sector are classified as “microcaps”, meaning they have market cap valuations below $50 million. This means that these tokens are largely untested, have a high risk of failure or abandonment, and are typically quite illiquid.

Still, for those who are willing to take the risk, the potential rewards are significant. With low market caps, large capital inflows can result in large percentage gains in a short amount of time. As such, investors who are willing to take a chance on AI tokens could potentially reap significant rewards in the long run.

Overall, while the AI sector is still in its infancy, it is clear that the technology holds a great deal of promise. With continued innovation, the potential of AI tokens to revolutionize the crypto landscape is very real. For those who are willing to take the risk, the potential rewards could be quite substantial.

• Economist Eswar Prasad has warned regulators that a bank run on Stablecoins could have significant impact on the U.S bond markets.
• Prasad warned that if a bank run should occur while bond market sentiment remains „very fragile,“ there could be a „multiplier effect“ due to immense selling pressure on Treasurys.
• Stablecoins such as Tether (USDT) are backed by billions of dollars in reserves to accommodate mass-redemptions scenarios, according to USDT’s November 2022 report.

Economist Eswar Prasad has sounded the alarm on the potential risks of a bank run on Stablecoins and its potential impact on the U.S. bond market. In a warning to regulators, Prasad outlined the potentially devastating consequences of a mass-redemption scenario, citing the likely “multiplier effect” on Treasurys due to the fragile sentiment of the bond market.

Stablecoins are digital assets backed by real-world assets such as fiat currency, gold, or other commodities. Tether (USDT), the most prominent of these, is backed by billions of dollars in reserves, ensuring that users can redeem their coins for fiat currency in the event of a bank run.

However, Prasad warned that such a situation could still have dire implications. A large-scale redemption would likely require USDT to sell off its reserves, resulting in a significant sell-off of U.S. Treasurys and a sharp drop in bond prices. This could create a “multiplier effect” on Treasurys, leading to a ripple effect throughout the financial system.

Prasad noted that the impact of such a scenario could be felt beyond the U.S. bond market. Given how interconnected the global financial system is, a bank run on Stablecoins could lead to a domino effect of selling pressure on markets around the world.

As such, Prasad concluded that regulators should be taking the potential risks of a Stablecoin collapse seriously, and taking steps to ensure that such a situation is avoided. However, given the sheer size of the U.S. Treasurys market, it may be difficult for regulators to mitigate the impact of a mass-redemption scenario.