This year is full of emotions, undoubtedly. September isn’t the exception, and the cryptocurrency world has partaken in some wild events this month. Let’s check them quickly to be amazed (and protect your portfolio).
A bunch of cryptocurrency regulations worldwide
- Russia opened this month making several amendments to its first crypto-laws. According to them, it’s legal to mine cryptocurrencies, but not to receive remuneration for it (it’s not clear if the tokens count as a reward, though).
On the other hand, the cryptocurrency transactions would be legal only in three cases: inheritance, bankruptcy, and enforcement proceedings. Of course, that’s just inside Russia. Technically, people still can buy, sell, trade, and make payments freely with companies registered outside the country [Izvestia].
- The European Union (EU) doesn’t want to be left behind, so, they’re considering the creation of a new specific entity for the proper regulations of cryptocurrencies, focusing on the stablecoins and the asset-backed coins in general [Reuters].
Additionally, they’re also working on a flexible legal framework to make the cross-border payments with cryptoassets easiest, faster and cheaper. By 2024, they want this to be the standard above the cash [Reuters].
- The United States is the next one in these initiatives. Fortunately for the crypto-companies working on the territory, their legal authorities agreed to unify the regulatory framework for Fintech and crypto-firms. This means it’ll be easier and less expensive to obtain a license [Reuters].
For its part, the U.S. Office of the Comptroller of the Currency (OCC) has published some guidance for the banks about stablecoins. Apparently, is legal for them to provide its services to stablecoin issuers [CoinDesk].
A lot of DeFi and Ethereum
- The Ethereum network has been very popular these days because of the profitable DeFi apps and tokens. This implies a high volume of users, and a high volume of users means higher transaction fees. To start September, the average transaction fee was 14.5 USD (new ATH), and the end of the month saw another peak, with +11 USD [Bitinfocharts].
- Considering those scalability problems, the developers behind Ethereum have decided to launch in the next weeks the first phase of Ethereum 2.0: the Beacon Chain system. This will divide and distribute the data among the nodes, which won’t need the entire blockchain to work. Therefore, the network will be more efficient [Evan Van Ness].
- The DeFi food harvest continues at crazy rates. Through the month, the projects BurgerSwap and BakerySwap were launched on Binance Smart Chain (BSC), providing new uses cases for Binance Coin (BNB); which, of course, increased its price.
Likewise, Pickle Finance has popped into existence on Ethereum this month, offering to incentivize users to sell stablecoins that are trading above their peg and buy ones that are below it. Hotdog.Swap was born and died as well this month, after reaching the $6.000 mark and falling into disgrace in a matter of hours.
- Meanwhile, Nomi Chef, the Sushi Swap’s founder, sold $8 million worth of SUSHI tokens, leading to a panicked sell-off that sent the price tumbling more than 50%. But the protocol still sucked $1 million from Uniswap and, after some days, Nomi Chef came back with the money and an apology on Twitter.
- The UNI tokens by Uniswap, one of the largest decentralized exchanges in the industry, were launched this month too. This can be excellent news for Ethereum and yield farmers as well since more liquidity (and rewards) will be attracted to the platform.
Some other interesting facts
- The U.S Internal Revenue Service (IRS) is highly interested in people not avoiding their taxes, so, they were offering an amazing 625k bounty to anyone who could build a solution to break Monero (XMR) and Lightning Network (LN) privacy. Still, there’s a way to go for that [Department of the Treasury].
- The crypto-exchange Bittrex closed its operations with few announcements in 14 countries, including Belarus, Egypt, Bosnia, Lebanon, Panama, Ukraine, and Venezuela.
- The number of global Bitcoin ATMs increased by 87% since the last year. This means we have now +9.680 BTMs in the world and, probably, some of them are close to you [AksjeBloggen].
- Who will be the first Central Bank (and country) to mint their own digital currency? China? The United States? Somewhere in the EU, maybe? Well, apparently not. The Sand Dollar will be available in The Bahamas starting in October this same year. Its main purpose is to include in the financial system the most distant islands on its archipelago [Bloomberg].
- From $11.700 to $10.500, Bitcoin (BTC) has lost 10.26% in its price this month. Ethereum (ETH) lost 22.2%, XRP decreased 17.8%, Bitcoin Cash (BCH) -27.5%, Chainlink (LINK) -44.6% and Litecoin (LTC) -30.2%. Bearish month, to sum it up. Which means, maybe October will be bullish.
Featured image by QuoteInspector.com