Welcome to Barmy’s Daily Crypto News – July 16th, 2022
1. Putin Approves Of Crypto Payment Prohibition In Russia
A national ban on the use of digital assets for payments was today signed into law by Russian President Vladimir Putin. After much discussion on how to handle cryptocurrencies, the Russian government and central bank finally took action.
The Bank of Russia recommended a complete ban on cryptocurrency—for payments or investments—back in January. The law of today doesn’t really go that far. Similar to the bill passed today, the Russian Finance Ministry proposed cryptocurrency restrictions in February that permit investing in digital assets like Bitcoin or Ethereum but forbid using them to make purchases.
2. Circle Announces USDC Stablecoin Is Now Fully Backed By Cash
The payments firm Circle, which is responsible for the USDC stablecoin, has published a detailed asset breakdown of the funds supporting its expanding dollar-pegged token.
Even if it is unaudited, Circle’s amount of detail in its report on Thursday is a first for the firm and stands out as a transparent act in light of the attention stablecoins currently receive from regulators worldwide, which recently increased in response to Terra’s demise.
According to Circle’s report, the business no longer includes commercial paper—a kind of short-term, unsecured lending instrument—in its services. Circle pledged to totally switch to cash and U.S. treasuries after holding 9% of its reserves in commercial paper as of July last year.
3. Spanish Crypto Exchange Bitbase To Reach Latam
While the current bear market has had a detrimental impact on some cryptocurrency companies, others are expanding to other regions in an effort to profit on the popularity of crypto. Bitbase, a cryptocurrency exchange with in-person service, has announced the opening of its first location outside of Europe. The business just opened a new location in Paraguay where it will assist clients looking to enter the crypto market.
Additionally, the store will offer a cryptocurrency ATM where clients may buy or sell Bitcoin and other cryptocurrencies for paraguayan fiat money. According to Bitbase, this will be the first store of its sort to open in the nation, with additional locations soon to follow in other Paraguayan cities. Additionally, Bitbase oversees a sizable number of cryptocurrency ATMs throughout many European cities, accounting for 6% of all ATMs on the continent.
4. DeFi Token AAVE Doubled In A Month, Momentum Might Be Dangerous
Aave’s (AAVE) price has increased by more than double in the past month, but the bullish impetus may be wearing out. Notably, AAVE has increased by more than 103 percent from bottoming out locally on June 18 at $45.60, reaching about $95.50 this July 15. However, the token’s swift upward retracement move has moved its price closer to the threshold that precipitated swift declines since early June.
In other words, AAVE has been testing a resistance area along an upward trendline, which is a “bear flag,” or bearish continuation pattern. As an illustration, the trendline’s prior challenge on July 9 resulted in a 20 percent downward movement. Similarly, a similar attempt on June 24 caused the AAVE price to drop by close to 30%.
AAVE’s continuous effort to break above the flag trendline may encounter strong selling pressure as a result of this distribution pattern. A downturn might cause AAVE/USD to retest the flag’s lower trendline near $67.75 by September as its downside objective, which is almost 30% below the price of July 15.
5. SEC Announced Final Judgement For John McAfee’s Associate
Jimmy Gale Watson, Jr., a friend of the late John McAfee, was found guilty by final consent today for his alleged involvement in an initial coin offering (ICO) fraud, according to the Securities and Exchange Commission.
The SEC filed a lawsuit in October 2020 after Spanish authorities detained McAfee, stating that the former leader in antivirus software had pushed investments in ICOs with Watson’s assistance without revealing that they were being paid to do so.
The SEC charged McAfee and Watson with participating in pump and dump schemes, surreptitiously building up a sizeable position in a cryptocurrency, and then publicizing it on Twitter with the goal to sell it as its value increased.
Watson is permanently prohibited from purchasing, selling, or providing digital assets in a professional capacity, and the final judgment against him imposes a punishment of $316,401.48 plus prejudgment interest of $59,533.38, for a total penalty of more than $375,000.
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