Issue 144: Bitbuy’s 2021 Proof Of Reserves & Crypto News!
July 22nd, 2021
BIG Has Completed Bitbuy’s 2021 Proof Of Reserves
Bitbuy Announces New CCO Hire
Bitbuy is proud to announce the hiring of Torstein Braaten, as our new Head of Regulatory Affairs and Chief Compliance Officer. Torstien will be instrumental into bringing Bitbuy into regulatory compliance.
Welcome to the team Torstein!
Weekly Market Recap
Analysis: Did we just see the B Word Bump? After Elon Musk, Jack Dorsey and Cathie Wood spoke at yesterday’s conference, the markets soared. XLM led the way with a 19% 24 hour gain. Spot volumes continue to be in a steady decline across the board, but have jumped up in the last 24 hours with the upwards opportunity.
Big Story: EU To Prohibit Anonymous Crypto Transactions?
Early adopters of cryptocurrency often lauded its anonymous yet completely transparent features. While this was one of the features that built the compelling case for digital currencies, the European Union has since made an interesting announcement.
Most recently, they proposed the prohibition of anonymous cryptocurrency transactions. This means the government will look at monitoring the digital currency with the same rules as regular bank wire transfers. The theory behind doing so is that all financial systems should be governed under the same rules, with no exemptions. A secondary reason behind this is that it would contribute to a broader plan to reduce money laundering and terrorism financing. That said, the law is said to be reasonably balanced, simply ensuring that all companies take note of the details of both parties involved in the transactions.
Even with this news, the implementation of these laws are likely to take years to go through all the member states and parliament. And even if these rules do go through, these regulations seem to be targeted at centralized exchanges that users are likely already complying with know-your-customer (KYC) protocols when they create their account. Although users give up some control, this method of purchasing digital currencies is also an easy way to swap traditional currencies for fiat currencies.
Canadian Impact of The E.U. Announcement?
With this announcement, the E.U. is not writing off digital currencies. Quite the opposite is true, as they are currently considering the implications of a digital Euro, which they believe would help to support the digitalisation of the European economy and encourage innovation. The digital Euro project was set to launch this month (July 2021), with an investigation phase lasting two years, beginning in October. After which time, a digital Euro issued by the European Central Bank may become a real possibility.
For those of us in Canada, KYC standards are already mandatory, suggesting that no changes are imminent. Perhaps in the future, Canadian lawmakers may look at something similar that could impact non-KYC’d platform transactions. Zooming out, it is a good sign for both the E.U. and Canada that regulations exist for the integration of digital currencies with current systems, suggesting a long life for cryptocurrency in these nations and security for its users.
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