GB Market Commentary 15/03/2022
by Marcus Sotiriou
Bitcoin fell overnight despite bullish regulatory news. Investors are in fear of the first rate-hike tomorrow, as it is the first day in which liquidity may start to be drained from global markets.
Yesterday, the European Parliament’s economic and monetary affairs committee (ECON) voted on a proposed crypto framework called Markets in Crypto Assets (MiCA). A last minute addition to the bill involved a ban against banning proof-of-work, hence affecting Bitcoin. Fortunately, the committee voted against the ban, as an alternative proposal received support instead. Stephen Berger, who drafted the amendment to the ban, said that by accepting his proposal, EU parliament members have paved the way for future crypto regulation - this is a huge relief for the industry.
Additional regulatory news was announced yesterday, as the Central Bank of Bahrain has given Binance the green light to operate in the country. The license marks Binance’s first approval in the Middle East.
Seen as Binance has faced heavy resistance from many jurisdictions, such as Japan, Germany and the UK, this is a great step forward for the exchange. In addition, Binance has assisted Dubai World Trade Centre Authority with developing their crypto regulatory framework, and are rumoured to be setting up a headquarters in Dubai, after it was reported last night that they have acquired a license to operate in Dubai too.
These regulatory advancements from the Middle East and the EU show the support that crypto is receiving around the globe, as the industry is proving itself to be an unstoppable force towards mainstream adoption in the long term.