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  • Kenneth Blanco has said that the FinCEN sees all stablecoins as falling under their remit in order to protect “money transmission services”.
  • Blanco spoke at the Chainalysis Links conference in New York City at the end of last week where he stated FinCEN upholds its “technology-neutral” outlook.
  • The director insisted stablecoin administrators must sign up as a Money Services Business.

 

Director Kenneth Blanco has said that the United States Financial Crimes Enforcement Network (FinCEN) sees all stablecoins, including Tether, as falling under their remit in order to protect “money transmission services”, he said.

Blanco spoke at the Chainalysis Links conference in New York City at the end of last week where he stated FinCEN upholds its “technology-neutral” outlook whilst simultaneously including stablecoins under that definition.

“It does not matter if the stablecoin is backed by a currency, a commodity, or even an algorithm, the rules are the same,” Blanco said.

The clarification by the American money laundering regulator came as the director insisted stablecoin administrators must sign up as a Money Services Business (MSB) with the Financial Crimes Network.

As per CoinDesk:

“Including stablecoins as money transmitters, and their administrators as MSBs, means firms dealing with them must follow federal know-your-customer (KYC) and AML laws under the Bank Secrecy Act.”

For those that don’t know, Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin. A stablecoin is typically pegged to a cryptocurrency, fiat, or to exchange-traded commodities.

“Just because you say you are a banana doesn’t make you a banana,” he said.

“FinCEN applies the same technology neutral regulatory framework to any activity that provides the same functionality at the same level or risk, regardless of its label. It is not what you label it, it’s the activity you actually do that counts.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

Adrian Barkley , 2019-11-20 16:00:00 ,

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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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