Russia-Ukraine Tension | US Congressman Needs Crypto Regulation

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2022-05-18 20:18:28

Market situation

Bitcoin yesterday fell and fluctuated around $42,000 to $39,000. Altcoins also follow the BTC trend and fall.

US stocks also fell similarly in all three indexes. Stock futures also showed a downtrend.

The oil market rose 2.3% to more than $110 a barrel. Gold is almost flat at the price of 1942 USD/ounce.

Stock markets as well as crypto fell due to the impact of tensions between Russia and Ukraine as well as within the US.

First, Ukraine’s State Emergency Service said there was a fire behind the nuclear power plant in an area used for training. This is the largest nuclear power plant not only in Ukraine but also the largest in Europe. The service said that initially, firefighters were unable to extinguish the fire due to the ongoing armed conflict. After that, the two sides negotiated a ceasefire so that the fire department could come in and put out the fire. To date, the reactors of the Ukrainian nuclear power plant are being safely closed.

The British Prime Minister also spoke out about President Putin’s reckless actions that can now directly threaten the safety of the whole of Europe. This has caused stress in the market and stock and crypto prices have both gone down.

Western nations have responded to Russia’s invasion of Ukraine with a series of sanctions aimed at crippling the country’s economy, and economists say it could work.

The Group of Seven, or G-7, major economies have imposed unprecedented punitive sanctions on the Central Bank of Russia along with broad Western measures against oligarchs and the country’s officials, including Russian President Vladimir Putin. The embargo added 19 Russian tycoons and 49 of their relatives in the US, Canada as well as many countries in Europe to the sanctions list.

Key Russian banks have been banned from participating in the SWIFT international payment system, making it impossible for them to securely communicate internationally and ostracizing them from much of the global financial system.

London-listed shares of Russian companies have plummeted since the Ukraine invasion. The London Stock Exchange has suspended trading at 27 companies linked to Russia, including biggest lender Sberbank and energy giant Gazprom. Other companies blocked from trading in London include Lukoil, Polyus and EN+, while subsidiary VTB, Russia’s second-largest bank, was suspended last Friday. Sberbank is down 99.72% year-to-date to trade for about a cent before the suspension, while Gazprom is down 93.71%, Lukoil 99.2%, Polyus 95.58% and EN+20, 51%.

In Russia, stock exchanges have remained closed since Monday. Russia’s central bank had to raise interest rates from 9% to 15% because of the ruble’s rapid depreciation and high inflation. JPMorgan said that economic sanctions could reduce the Russian economy by up to 35%.

Fed wants to increase control over crypto

Next, the statements of the Fed chair in the congressional hearing are also part of the reason why investors are worried. Mr. Powell also indicated that the US central bank will try to mitigate inflation by raising interest rates later this year and increasing them gradually. He said that the central bank was set to raise its policy rate but the situation in Ukraine may have changed expectations.

Fed Pro Tempore Chairman Jerome Powell also added that Russia’s invasion of Ukraine could underscore the need for crypto regulation to prevent sanctioned individuals from using cryptocurrencies to evade transactions. sanctions.

Additionally, similar to ECB President, Hillary Clinton believes that the Russians can use digital assets to bypass financial sanctions. She criticized crypto exchanges that refused to stop providing services to users of Russian origin. Hillary once again emphasized that digital assets should be placed under a legal framework.

The MPs who don’t like BTC continue to use these events to criticize BTC. However, they purposely fail to mention the fact that it faces the big challenge of not having enough liquidity to do so. converted due to the “thin market”. The Ruble versus Bitcoin market is about $200,000 liquid, making it difficult for Russia to switch to Bitcoin. Therefore, the ability of Russia to use BTC to fight economic sanctions is very unlikely.

The anti-BTC congressmen also intentionally ignore the benefits of BTC. The most typical is the fact that Ukraine can receive support quickly with the amount of more than million USD directly thanks to BTC and crypto.

Other information:

  • Samson Mow, chief strategy officer at Blockstream, announced his departure from the platform via Twitter. Mow, who has served Blockstream for 5 years, now wants to focus on accelerating BTC adoption nationally, seeing Mexico as his first target. Mow was also an advisor to El Salvador during the adoption process to make Bitcoin legal tender in the country.

  • With the goal of becoming the Bitcoin capital of Europe, Lugano, Switzerland, has partnered with stablecoin issuer Tether to establish Lugano’s own bitcoin, Tether and LVGA Points token as essentially legal tender in city. The move goes beyond the actions of several other Swiss localities that have been accepting cryptocurrencies for tax payments for some time. A bit like El Salvador, Lugano – in addition to allowing cryptocurrencies to be taxable – is aiming for all of its businesses to seamlessly use crypto for day-to-day transactions.

  • Major investment firm Schwab Asset Management, with more than 33 million clients, is preparing to offer its first in-house crypto product to its 33 million customers: the “Schwab Crypto Economy ETF” – a vehicle that tracks investments shares enter the world of digital assets.

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#RussiaUkraine #Tension #Congressman #Crypto #Regulation

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