News updates July 18, 2022

1. Bitcoin Recoups Above $20,750 Support as It Targets the $22,000 High

Bitcoin (BTC) price is in a downward correction after rising above the 21-day line SMA, but below the 50-day line SMA. In the last three days, the largest cryptocurrency has been trading between the moving average lines.

The first hurdle for buyers is to overcome the $22,000 resistance zone. In the July 16 uptrend, buyers pushed the bitcoin price to the high of $21,606, but it fell back above the 21-day line SMA. Today, the BTC price resumed a new uptrend to reach the overriding resistance of $22,000 again. If buyers overcome the $22,000 resistance, Bitcoin will rise to the next resistance at $23,010. 

The bears will provide tough resistance at the $23,010 high. A break of the $23,010 high will send Bitcoin above the 50-day line SMA or the $24,000 high. The BTC price will resume its upward momentum if the buyers succeed above the 50-day line SMA. The initial strength of the bulls will be a rally to the psychological price level of $30,000. Conversely, the bullish scenario will be invalidated if buyers fail to break above the $22,000 resistance zone. Instead, bitcoin will fall below the 21-day line SMA and revisit the $20,000 support. 

 *Bitcoin indicator reading*

Bitcoin is at level 50 of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The price bars of the cryptocurrency are above the 21-day line SMA, but below the 50-day line SMA. This indicates that the cryptocurrency will move in a fluctuation range. Bitcoin is above the 40% range of the daily stochastic. The market is in a bullish momentum, even if the momentum is unstable.

2. US and UK to Deepen Ties on Crypto Regulation, Says British Regulator

Britain’s top financial regulator, the Financial Conduct Authority (FCA), says the U.S. and U.K. will deepen ties on crypto regulation. “In the past, innovative firms would have been pleading for less regulation. Now they understand and appreciate that rules are there to help provide certainty,” said the British regulator.

 *US and US to Strengthen Collaboration on Crypto Regulation*

The U.K. Financial Conduct Authority’s chief executive, Nikhil Rathi, outlined the FCA’s regulatory goals Wednesday at Peterson Institute for International Economics.

“One area of global focus is crypto, both opportunities and risks,” the FCA chief said. “Currently, our remit is limited to anti-money laundering rules for platforms. We have applied those strict rules as we would to any other firm that wants to operate in the U.K. market.”

Rathi proceeded to mention that the FCA held “Cryptosprints” earlier this year, which drew nearly 200 participants. “The objective of the events was to seek industry views around the current market and the design of an appropriate regulatory regime,” the FCA explained on its website.

“In the past, innovative firms would have been pleading for less regulation. Now they understand and appreciate that rules are there to help provide certainty,” he opined.

The U.K. government outlined in May its legislative agenda for the next parliamentary year in the Queen’s Speech. One of the bills aims to support “the safe adoption of cryptocurrencies and resilient outsourcing to technology providers.” Another aims to create “powers to more quickly and easily seize and recover crypto assets, which are the principal medium used for ransomware.”

Furthermore, the British government unveiled a detailed plan in April to make the country a global crypto hub and “a hospitable place for crypto.” The plan includes establishing a dynamic regulatory framework for crypto, regulating stablecoins, and working with the Royal Mint to create a non-fungible token (NFT) to be issued by the Summer.

3. Hong Kong Central Bank: Crypto is likely to be ‘important for future financial system’

Hong Kong Monetary Authority (HKMA) CEO Eddie Yue has stated that despite the shortcomings in the cryptocurrency sector, the industry is likely to play a central role in future financial systems. 

Speaking during the G20 financial officials meeting, Yue noted that the technology powering most cryptocurrency projects could be adapted to suit the general financial system, Reuters reported on July 17. 

However, Yue called for regulation of the sector to avoid related risks like the recent Terra (LUNA) ecosystem crash that resulted in significant losses. 

 *Hong Kong embracing crypto benefits* 

Yue’s sentiments align with HKMA’s long-standing friendly approach to cryptocurrencies. In January 2022, the institution released a statement indicating that the entity is open to embracing the benefits of financial innovation while recognising the risks involved. 

The institution has recently focused more on the stablecoin regulations, especially after the Terra ecosystem crash. 

In the bank’s recent discussion paper about its retail central bank digital currency (CBDC), e-HKD, HKMA warned that stablecoins could undermine the country’s dollar.

HKMA noted that if one single stablecoin emerges more popular, the local currency will be significantly undermined. 

 *Australian central bank promotes regulated private cryptocurrencies* 

Furthermore, during the G20 session, Australian central bank governor Philip Lowe expressed support for privately issued cryptocurrencies only in a well-regulated environment. According to Lowe, private cryptocurrencies might be better than CBDCs. 

Both Australia and Hong Kong are among the countries leading the charge towards a standard crypto regulation framework.

4. India’s Central Bank Is Keen to Ban Cryptocurrencies, Says Finance Minister

India has been doing flip-flops over the last few years over its decision to allow the use of cryptocurrencies in the country. On Monday, Indian Finance Nirmala Sitharaman said that the Indian central bank – Reserve Bank of India (RBI) – is keen to ban the use of cryptocurrencies in the country.

Her fresh comments while addressing parliament members shows the growing uncertainty surrounding digital assets. The Indian finance minister said that RBI has expressed concerns about the “destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country”.

While speaking about having legislation in this sector, Sitharaman added that “RBI is of the view that cryptocurrencies should be prohibited”. However, Sitharam said that introducing any legislation for regulatory purposes or deciding to ban them would require significant international cooperation. As per the draft, the Indian Finance Minister said:

 *India’s Crypto Crackdown*

Earlier this year, India introduced a strong 30% tax on the profits derived from crypto trading. The reason behind imposing this heavy tax was to discourage investors. The tax rules did have an impact as trading volumes went dry at crypto exchanges over the last few months.

On the other hand, banks have called off ties with major crypto exchanges. This has put a big dent in the Indian liquidity coming to the crypto market. Cryptop exchange Coinbase had to stop its services in India due to informal pressure from the RBI.

The recent turn of events has left Indian crypto investors in an absolute uncertain zone. It will be interesting to see how the government and the RBI coordinates to take a balanced approach.

5. Crypto Investors At Risk, Says SEC Chair; Here’s Why

The U.S SEC’s Chairman Gary Gensler, who is in charge of making regulations to safeguard investors’ interests, shared his views on the recent crypto market downturn. Meanwhile, under his administration, the commission has issued 23 proposed rules. However, they have not been approved yet.

 *Investors should get full disclosure*

In an interview with Yahoo Finance, Gary Gensler answered a vital question about applying the rules around the equity disclosure regime in the crypto market. The SEC Chief highlighted that there is a difference between asset backed securities and an equity offering. So, there may be some differences here, and the investors should get full and fair disclosure.

He added that the public should have basic protection whether they are buying a cryptocurrency, a security, or asset-backed security. Meanwhile, Gensler mentioned that In America, the SEC lets investors take risks. However, it should be the duty of an individual to give out all the information before raising money or selling any financial assets in public.

SEC’s these major comments have come out at a time when platforms and companies applied for insolvency recently. While some platforms also halted their withdrawals. In these cases, investors didn’t even know whether their funds were insured or not.

 *Bitcoin is not a security, says SEC chief*

People lost lots of money as some protection that applies to the traditional market didn’t apply in the digital asset market. Gensler believes that this is because there are non-compliant platforms and tokens. However, he added that he cannot prejudge anyone. As the authority has robust rules and regulations.

6. Japan FSA, JVCEA Vie Over Self-regulation Amid Crypto Winter

* Japan Blockchain Week 2022 concludes after a 12-day-long celebration.

* Industry experts state Japan is in deep crisis with self-regulation amid crypto winter.

* Japan’s FSA has criticized the Virtual Currency Exchange Association for mismanagement.

Keeping aside the frostbites of crypto winter and the ruin of global investors, Japan celebrated Japan Blockchain Week 2022 from July 6 to July 18. The major part of this event was the three-day long 14th annual IVS crypto conference which hosted over 1,600 executives and industry experts and unveiled umpteen opportunities blockchain technology offers.

Held in Naha, Okinawa, this invite-only jamboree exclaimed “The Future has Arrived” as their slogan. However, the slogan’s tone was contrastingly different in the capital city, Tokyo, where the nation’s pioneering and bold crypto experiments occur.

According to a report by Financial Times, industry experts, executives, lawyers, and financial regulators are alarmed by a spiraling regulatory crisis griping over the country’s multibillion-dollar digital asset business.

Despite hosting its first Blockchain Week, Japan is facing some critical backlashes regarding self-regulation amid the crypto meltdown. Lately, major disagreements have riled the Japan Virtual Currency Exchange Association (JVCEA), a body established in 2018 to form a global precedent for the crypto industry’s self-regulation.

Initiated by the members of Japan’s 32 licensed crypto exchanges and former government officials, JVCEA staff admitted being under the grip of crisis and existential threats.

To defiance for Japan, the members of JVCEA’s secretariat have created a union in an attempt to protect themselves, although the Japanese Financial Services Agency (FSA) has repeatedly criticized the organization for its poor governance.

FSA cited the dearth of communication between the JVCEA directors, secretariat, and operating members as the primary reason behind the poor governance and mismanagement in the organization.

The crisis is a repercussion of a series of events that involves corrosive infighting and a chronic lack of resources, a stand-off with regulators, a sham in Japan’s approach to virtual currencies, and the country’s status as a leading global center for virtual asset trading activities.

Last December, the FSA issued an “extremely stern warning” against JVCEA. Financial Times quoted people familiar with the matter, stating the regulators have been concerned about the delays to crucial anti-money laundering regulation.

The minutes of the last year’s annual board meeting reveal that it was unclear “what kind of deliberations the body was having, what the decision-making process was, why the situation was the way it was, and what the [responsibilities] of the board members were.”

7. Three Arrows Capital co-founder files $5 million claim against own firm while on the run

On July 8 it emerged that the liquidators of Three Arrows Capital (3AC) have not been able to connect with the company’s founders “in any meaningful way,” per a document submitted to the United States Bankruptcy Court for the Southern District of New York.

Interestingly, On July 18, a Twitter user by the name of Soldman Gachs, who is also a creditor to 3AC, reported that Zhu Su, one of the co-founders of Three Arrows Capital, was also included on the list of creditors and had submitted a $5 million claim, making him a creditor against his own company.

Notably, Zhu Su and Kyle Davies the two founders of 3AC have not been seen since they disappeared, so the $5 million claim comes while Su is in hiding and there has been no information found that may help locate either him or Davies. 

 *$25 submitted by ThreeAC*

Additionally, a claim for $25 million has been submitted by ThreeAC Limited, which is the Investment Manager of the fund. The fund would afterwards become one of the major creditors of the 3AC, while other creditors are being disclosed for the first time.

On the list were the cryptocurrency exchanges and lending platforms including DCG, Voyager, DeFiance, Celsius, BlockFi, CoinList, SBI Crypto, Galaxy Digital, and BitGo, while projects Algorand and Moonbeam Network are also included.

The aggregate worth of all of these claims filed against 3AC came to $2.8 billion.

Additionally, it is important to mention that a meeting of all the creditors of 3AC is planned to take place on July 18 during which they will discuss the proceedings. The conference would be overseen by the company Teneo Restructuring, which had been commissioned by the court in the British Virgin Islands. 

According to Soldman Gachs, Zhu Su is one of the creditors; thus, the likelihood of him being present at the meeting could be high.

8. Bitcoin Still Facing Strong Resistance By 200-Weekly Moving Average, Must Cross The Hurdle To Rally Further.

The world’s top crypto is apparently trying to gather steam after weeks of bear attacks. While Bitcoin seems to have gained a bit over the last 24 hours, the momentum is still not enough to push it significantly. At the moment, the coin is valued at just around $22,120.

However, this price point puts Bitcoin below the resistance level established at around $22,850, where 200-weekly MA acts as a strong resistance. That’s according to new data posted by Rekt Capital. Bitcoin must reach and breach this point to record any significant movement.

According to another famous trader, Michael van de Poppe, the current market setting doesn’t seem to favor any big continuation of the current push. In a tweet, Michael opined that range resistance, coupled with the situation below the 200-week MA, makes it hard for Bitcoin’s price to move upwards. However, he did offer an opinion on what could trigger a good movement.

Continuation Would Take Price To $28k

At the current price level, Bitcoin must consolidate to build up enough momentum for a bigger push. According to the trader, a slight consolidation could give the coin enough steam to break above the resistance at around $22.6k and make a dash for the $28k range.