Bitcoin price slips below $30,000 as European regulators widen crackdown

The value of Bitcoin has slipped below $30,000 as calls grew among regulators in Europe, the US, and Asia for tighter checks on cryptocurrencies and the less volatile digital-currency known as ‘stablecoins'. In recent times, all digital currencies have triggered scepticism about their possible misuse with multiple users arrested for money laundering and other crimes. Noting the same, the European regulators outlined plans to make cryptocurrencies more traceable as a part of a wider crackdown. 

In an announcement, the European Commission said that all companies handling virtual assets, such as bitcoin, should become subject to anti-money laundering rules, along with transparency requirements for transfers of crypto assets. A similar move is also expected from the United States, where on Monday, Treasury Secretary Janet Yellen asked regulators to establish a regulatory framework for stablecoins. It is imperative to note that stablecoins are cryptocurrencies that derive their value from an underlying currency or basket of assets

“The secretary underscored the need to act quickly to ensure there is an appropriate US regulatory framework in place,” the Treasury said.

Meanwhile, all this has triggered a dramatic plunge in the prices of the largest cryptocurrency. On July 21, Bitcoin fell as much as 5 per cent to 29,300, making the lowest rate since June 22. Later, the Guardian reported that investors were speculating a likely fall till the $28,600 level that it touched last month. However, meme-based dogecoin recorded double-digit percentage losses, wiping away $200 billion in value over the last week. 

China bans cryptocurrencies

China on May 18 announced that country’s financial institutions and payment companies from providing any services related to cryptocurrency transactions and has even warned the investors against speculative crypto trading. The latest crackdown by Chinese officials, according to a Forbes report, is in light of the market’s recent volatility. It also marks another blow to the nascent market reeling from one of its biggest sell-offs ever after booming institutional adoption helped to reach highs during the COVID-19 pandemic. Under the ban, Chinese financial institutions are not allowed from offering clients any service involving cryptocurrencies.

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