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As the cryptocurrencies are increasingly getting more and more popular, the world starts to take differing positions with regard to their legality and mass adoption. Some countries have outright banned the new digital currencies and their parent system blockchain, while others have taken a more liberal approach, letting the market do its job.

And while the latter ones are probably doing a favor to their economies, even the former ones cannot be judged for their decisions. Just look at it this way: the original idea for creating Bitcoin was to take away governments’ monopoly over fiat currencies that were causing various problems like rapid inflation, increased surveillance, etc. Blockchain didn’t allow any centralized authority to monitor anyone’s financial transactions, let alone to control and terminate them.

China, Bolivia, Columbia, Ecuador – these are some of the countries with the most stringent crypto regulations in the world right now. However, there are some other countries that don’t really share the same enthusiasm or, to put it more clearly, skepticism. And if one particular region can be brought as an example here, it’s definitely Central Asia. 

These so-called seven “-stan” countries – Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, Tajikistan, Pakistan, and Afghanistan – have taken a more or less crypto-friendly approach and allowed the new technologies to change their industries. In this article, we’ll take a look at some of the most prominent examples of crypto and blockchain usage in those countries.

Afghanistan’s blockchain-powered health sector

Afghanistan is one of the few countries to try a new blockchain system in its healthcare industry. Just recently, in November this year, the country’s Ministry of Public Health signed an agreement with one of the most popular blockchain startups in the country that aims to bring new opportunities to Afghanistan’s health sector.

As the agreement implies, blockchain will be used to terminate the spread of counterfeit drugs, as well as making patient and hospital records inscribed in a digital system. By doing so, these records will forever be stored on the blockchain and no one will be able to change or delete them.

Pakistan’s double-sided crypto policy

Pakistan is a peculiar case in a sense, and here’s why: Generally, the country has the cryptocurrencies banned altogether. No entity is allowed to exchange them or buy stuff using Bitcoin, Ether, or any other digital currency.

And many civic activists, as well as private entrepreneurs, have voiced their criticism towards this oppressive digital regime. Things have even gotten to a point where the Sindh High Court has to decide the legality of the Pakistani central bank’s decision.

But, this ban notwithstanding, the government has been looking for various blockchain applications itself. Earlier this year, government officials started to search for ways to digitize some of the most crucial government operations. The government even created a special unit under the name Digital Pakistan. And to top it all off, it even wants to issue Pakistan’s own cryptocurrency by the year 2025.

Kazakhstan taking the most radical approach

In this somewhat mild approach towards cryptocurrencies in the region, Kazakhstan has decided to take a completely liberal direction and make some concessions to the crypto miners.

As the lawmakers in the country are moving forward with their draft bill about cryptocurrencies, Kazakhstan is set to become one of few countries that willingly gives tax exemptions to its citizens. In fact, crypto mining is going to be considered as a “purely technological progress” and generally, no one wants to impede the dynamo of progress.

But there’s a catch: as long as the mining and exchange process stays within the cryptocurrency confines and doesn’t spill over to fiat currencies, they won’t be subject to taxation. However, if the users exchange Bitcoin or any other digital currency into “real money”, then it’ll be considered a full-fledged financial operation that can and should be taxed.

As this proposed bill suggests, Kazakhstan sees the value of modernization in cryptocurrencies. And while they’re going to enjoy tax exemptions, the crypto mining farms will still be subject to taxes since they’re treated as data centers in the country.

Kyrgyzstan on the offensive

While Kazakhstan is testing out various methods to free its crypto miners from heavy tax burdens, Kyrgyzstan is taking a different route here: the government banned cryptocurrencies in 2014 and has been on the offensive for quite a while now.

However, crypto miners still managed to take a foothold in the country, mainly due to its cheap electricity. And that’s where the Kyrgyzstan government decided to hit them: in September 2019, almost 50 crypto mining establishments were cut off from the electricity. As the government authorities put it, they were using an enormously high amount of electricity for mining.

Beyond that, the government is still looking for ways to further tax the miners. The Ministry of Economy has already begun the process of changing the tax code in favor of crypto taxation. And since the industry is already pretty large there, taxation can bring some cash in the state budget as well.

Uzbekistan’s overly positive attitude

Uzbekistan has taken more or less the same route here: the government increased power tariffs for miners four times. The power consumption is the same problem for Uzbekistan as it is for Kyrgyzstan and the government is set to distribute the electricity more “fairly”. 

Other than that, cryptocurrencies, including mining and trading, remain completely legal in the country. Some entities even enjoy tax exemptions. This indicates that the Uzbekistan government remains overly positive towards cryptocurrencies and blockchain. Just like in Afghanistan, Uzbekistan has also made efforts to digitize some government projects in 2018.

Giorgi Mikhelidze , 2019-12-13 22:00:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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