OOPS Tech Study Center’s Weekly Exchange

For today, Wednesday 11 January 2023, we expect a session with a positive trend. Markets in the European session could move in a positive trading range. What is meant by:

Laterality: when the market moves in positive and negative territory without a clear direction, or when supply and demand are equal.
Negative lateral: the movement will be more oriented in negative territory, i.e. sellers will prevail.
Positive lateral: the movement will be oriented more towards positive territory, i.e. buyers will prevail.
Positive: the trend since the opening of the markets is clearly in favor of buyers.
Negative: the trend since the opening of the markets is clearly in favor of the sellers.

Cryptocurrencies And Supporting States

2022 has not been a great year for cryptocurrencies. However, even amid the market crash and repeated public attacks on the sector, some states have decided to support them.

Brazil

2021 was the year of mass adoption in Brazil, but it was 2022 that set the regulatory framework. Jair Bolsonaro, former president of Brazil, has signed a law legalizing the use of cryptocurrencies as a payment method within the country. The bill does not make cryptocurrencies legal tender, as in El Salvador, but introduces the legal definition of digital currencies and establishes a licensing regime for virtual asset service providers. The bill came at the right time. The number of companies holding cryptocurrencies in Brazil has set new records: The country’s tax authority registered 12,053 unique organizations that declared cryptocurrencies on their balance sheets in August 2022. Institutional and retail investors currently trade 11 exchange-traded funds ( ETF) with exposure to cryptocurrencies on the Brazilian Stock Exchange.

Great Britain

Great Britain, despite the not exactly easy period it is facing, has never stopped working on the regulation of cryptocurrencies. The UK has reiterated its intention to become a global hub for cryptocurrencies. He expanded the regulation of stablecoins and coined a new term: Digital Settlement Assets (DSA). The bill will authorize the Treasury to regulate DSAs, including payments, service providers and insolvency settlements. The Economic Crime and Corporate Transparency Bill introduced in May proposed creating powers to more quickly and easily seize and recover cryptocurrency assets. The High Court of Justice in London, the closest analogue to the US Supreme Court, has ruled that NFTs represent “private property”.

El Salvador

The nation of El Salvador last unveiled a bill confirming the government’s plan to raise $1 billion to invest in building a “Bitcoin city.” Since then, however, there has been no news, everything is silent. However, the country remains a crucial laboratory for the adoption of Bitcoin. According to Salvadoran Tourism Minister Morena Valdez, the tourism industry in El Salvador has seen a surge of more than 30% since the adoption of the Bitcoin law in September 2021. As of early 2022, a study by the National Bureau of Economic Research (NBER) showed that 20% of businesses have started accepting them as a payment method.

Central African Republic

In April, the Central African Republic, which has a population of 5 million, became the first nation on the continent to legalize the use of cryptocurrencies in financial markets. The Cryptocurrency Act, passed unanimously by lawmakers, has allowed merchants and businesses to make payments in cryptocurrencies and allow for tax payments in cryptocurrencies through authorized entities. The local central bank (CBDC) digital currency, Sango Coin, was launched in July, with the aim of raising nearly $1 billion over the next year. So far, however, only $1.66 million of the coin has been sold.

United Arab Emirates

The UAE has moved early to create an attractive regulatory environment for global investors. In March, Dubai set up a legal framework for cryptocurrencies aimed at protecting investors and “designing much-needed international standards” for sector governance. The recently established Dubai Virtual Assets Regulatory Authority (VARA) has been granted executive powers in the special development zones and free zones of the emirate, with the exception of the Dubai International Financial Centre. In July, Dubai launched the Dubai Metaverse Strategy, which aims to transform the emirate into one of the top 10 metaverse economies in the world. This year will be even more interesting for the regulation of cryptocurrencies, with the race for the first comprehensive regulatory framework on the sector in the United States and the potential liberalization in Hong Kong and South Korea. We are sure, that to the most attentive readers, it is not missed a detail. These are countries considered tax havens, which rather than regulating for a global common good, are creating their own internal rules to attract huge capital in cryptocurrencies (OOPS Tech Study Center).

This article is originally published on lagendanews.com