News updates May 20, 2022

1. Bitcoin Reclaims $30K, Why Bulls Face Uphill Task

Bitcoin started a fresh increase from the $28,500 support zone against the US Dollar. BTC must clear $30,600 to move further into a positive zone.

* Bitcoin formed a base above $28,500 and started a fresh increase.

* The price is now trading above the $30,000 level and the 100 hourly simple moving average.

* There is a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).

* The pair could gain bullish momentum if there is a clear move above $30,600.

 *Bitcoin Price Is Facing Resistance*

Bitcoin price found support near the $28,500 zone after a steady decline. A base was formed near $28,600 and started a fresh increase.

There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The bulls even pushed the price above the $30,000 resistance zone. However, they are now facing an uphill task near the $30,600 zone.

There is also a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair. A high is formed near $30,721 and the price is now consolidating gains.

The price is trading above the 23.6% Fib retracement level of the upward move from the $28,590 swing low to $30,721 high. An immediate resistance is near the $30,400 level. The next major resistance is near the $30,600 level.

A clear move above the $30,400 and $30,600 resistance levels might start a fresh increase in the near term. The next key resistance could be near the $31,500 level, above which the price might gain bullish momentum.

 *Fresh Decline in BTC?*

If bitcoin fails to gain pace above the $30,600 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $30,000 level. The first major support is near the $29,800 level and the 100 hourly SMA.

The next major support sits near the $29,655 level. It is near the 50% Fib retracement level of the upward move from the $28,590 swing low to $30,721 high. A downside break and close below the $29,650 support might start another decline. In the stated case, the price could drop towards the $28,500 level.

2. G-7 Finance Ministers Call to Accelerate Global Crypto Regulations Following UST Collapse: Report

Finance ministers from the Group of Seven (G-7) large developed economies are set to call for faster global crypto regulations in the wake of the collapse of the terraUSD stablecoin last week, according to Reuters.

"In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB (Financial Stability Board) ... to advance the swift development and implementation of consistent and comprehensive regulation," the ministers wrote in a draft communique seen by Reuters.

The FSB, an international body based in Basel that was responsible for generating many of the post-2008 financial norms, had previously promised a report on the regulation, supervision and oversight of global stablecoins for October of this year. The FSB's leader, Klaas Knot, has already volunteered to write a crypto rulebook that could cover financial stability and investor protection issues

The turbulence seen in crypto markets last week, in which the Terra asset supposedly worth $1 sank to as low as 7 cents, and Tether's USDT also lost its peg, has only heightened calls for extra regulation.
In a speech given Monday in Paris, French central bank Governor François Villeroy de Galhau cited recent market turmoil as evidence that stablecoins are “misnamed” and “possibly very unstable.” Crypto assets needed to be supervised and interoperable across jurisdictions in order to avoid disrupting the international financial system, he said

The European Union’s financial services commissioner, Mairead McGuinness, in the course of finalizing European Union crypto laws known as MiCA, has also called for a global agreement on crypto to protect investors and limit the environmental impact of bitcoin-style proof of work technology.

3. US Treasury Official Warns Crypto Industry to Proactively Sanction 'Problematic' Wallets

A high-ranking U.S. financial crimes enforcement officer on Thursday directed the crypto industry to proactively blacklist “problematic” wallets even before Treasury Dept. officials order them to do so.
Alessio Evangelista, the associate director for Enforcement at the Financial Crimes Enforcement Network (FinCEN), said that “too often” crypto service providers have opted to keep their heads in the sand about blatantly suspect wallets “right up until the day of an OFAC designation or criminal indictment.”

Speaking before an audience of compliance wonks at the Chainalysis LINKS conference, Evangelista warned that virtual asset service providers are “putting their own reputation at risk” by ignoring “clearly observable red flags that they could and arguably should have taken note of long ago

The comments highlight federal officials’ growing concerns over crypto crime, a multibillion-dollar backwater that in some cases now threatens national security. This month, Treasury officers for the first time sanctioned a crypto mixer – an on-chain privacy tool that crypto holders use to hide their tracks – over processing assets stolen by North Korean hackers in the $620 million Axie Infinity heist.

These funds were stolen to support a totalitarian regime that spends its money on developing weapons of mass destruction at the expense of feeding its citizens,” Evangelista said. He said virtual asset service providers have an obligation to effectively police themselves.

He also called out crypto projects for which “decentralization” was more buzzword than reality. Crypto entities that operate under the direction of individuals cannot skirt around their compliance obligations by falsely calling themselves decentralized, he said.

North Korean hackers have used multiple crypto mixers to launder funds stolen from Axie, including Blender, the first mixer to be sanctioned, and Tornado Cash. A Tornado Cash representative previously told CoinDesk that “OFAC is the judge of what addresses need to be banned."

4. Congress May 'Work More Quickly' on Stablecoin Regulations Amid UST Collapse: SEC Commissioner
“Crypto mom” has once again stated that she wants to see clear regulatory rules about using cryptocurrencies and stablecoins. 

Rules defining the use of cryptocurrencies, including stablecoins, should be as clear as possible, and that is something the U.S. Congress could help develop, according to the U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce.

"Crypto is an area where I've been calling for us to take steps to regulate the market, to put out clear rules about what people need to do," she said in an interview with Bloomberg on Thursday.

5. Terra's Do Kwon Investigated for Running a Ponzi. South Korean prosecutors are reportedly weighing whether they could make a Ponzi scheme fraud case against Do Kwon.

• Adding to criminal complaints from a group of South Korean investors, prosecutors are reportedly investigating Terraform Labs CEO Do Kwon on Ponzi charges.
• The prosecutors are scrutinizing whether Terraform Labs' Anchor Protocol, which promised investors fixed 20% interest on UST deposits, was a Ponzi scheme.
• The investigation follows Terra's $40 billion collapse last week. The investigation follows Terra's $40 billion collapse last week.

6. Moody’s Warns Cryptocurrencies May Cause Financial Instability. 

IN BRIEF
Moody’s published research saying that fast adoption of cryptocurrencies comes with risks.
Those risks include financial fragmentation and instability.
The agency also said that El Salvador could benefit from a deal with the IMF.

7. German regulator plans to start regulating DeFi

The German Federal Financial Supervisory Authority (BaFin) is calling for the regulation of the decentralized finance (DeFi) sector. The regulatory body wants the European Union to endorse a clear and uniform regulatory framework for the sector.

8. Bank of England’s Cunliffe Warns Crypto Will See Tough Times as Federal Reserve Tightens Financial Conditions

Bank of England’s deputy governor for financial stability, Sir Jon Cunliffe, has warned of hard times ahead for cryptocurrency investors as the Federal Reserve and other central banks tighten monetary policy.

9. Swiss Luxury Watchmaker, TAG Heuer Now Accepts Shiba Inu (SHIB) as a Payment. 

If you are a resident of the United States then you can now grab your TAG Heuer with Shiba Inu (SHIB) right from the brand’s own e-commerce platform.

Swiss luxury watchmaker, Tag Heuer is set to accept Shiba Inu (SHIB) as a payment in partnership with BitPay.

Tag Heuer, the luxury watchmaker added support for Shiba Inu (SHIB) along with 12 other major cryptocurrencies on its own e-commerce platform.

The complete list of supported cryptocurrencies includes Bitcoin (BTC), Ethereum (ETH), Shiba Inu (SHIB), Dogecoin (DOGE), USD Coin (USDC), Bitcoin Cash (BCH), Litecoin (LTC), Dai (DAI), Wrapped Bitcoin (WBTC), Gemini Dollar (GUSD), Pax Dollar (USDP), Binance USD (BUSD), and Ripple (XRP).