Iran Proposes Crypto Exchange Licensing Under Existing Laws
The Iranian lawmakers have moved to put a curb on cryptocurrency exchanges operating in the country, by enforcing existing traditional sector regulations on them.
According to local news outlet ArzDigital, a bill was moved in the Iranian parliament to include digital currencies in the existing “currency smuggling” and foreign exchange regulations.
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If passed, the law would make it mandatory for cryptocurrency exchanges to obtain a license from the country’s central bank for operation under the current guidelines for the foreign currency exchange.
However, it is not clear yet how the Iranian government is expecting the digital currency businesses to follow the norms designed for traditional finances and also the process of registration.
Given all this, it can be anticipated that the authority is moving to curb Iran’s growing digital currency industry. Any violation of the proposed law would land the business operators in jail or impose heavy fines on them.
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Notably, in the current scenario, most of Iran’s crypto exchanges are registered outside Iran. So it is also not clear how the government is planning to enforce the law on these businesses.
Cryptocurrencies have become very popular in Iran as many citizens are using them for cross-border transactions, circumventing the sanctions imposed by the United States.
Meanwhile, cryptocurrency mining is also very popular in the country with low electricity costs.
The Iranian authorities, however, took a different approach with the mining businesses. Instead of banning them, Iran regulated the industry and mandated licensing of crypto mining farms.
Since the enforcement of such regulations last year, the government issued licenses to over 1,000 cryptocurrency miners, and one of the latest being a Bitcoin mining farm with a capacity of 6,000 miners.
Author: Arnab Shome
ROUNDUP: Problems with the emergency assistant after VW also at Audi and Seat
On Friday it became known that Volkswagen + 2.12% had to prepare for a recall of the Golf 8 that had just started. According to the company, it was determined in the course of internal investigations that unreliable data transmission to the control unit can occur in individual vehicles of the model. Therefore, the function of the emergency assistant cannot be fully guaranteed. "In exchange with the responsible authorities, we check the further procedure for the affected vehicles," said a VW spokesman for the "Automobilwoche".
A decision by the Federal Motor Transport Authority (KBA) to recall and remedy the software update is expected in the coming days. The company imposed a freeze on delivery of the new model. The golf production continued for the time being – but all new cars would be put in stock for now, it said.
The works council warned – also with a view to the massive sales crisis of the auto industry and the full stock due to the corona consequences – against further setbacks for golf production at the main plant in Wolfsburg. The current underutilization with several canceled shifts could worsen. The employee representative therefore calls for an additional mass model to be established in Wolfsburg in the medium term. The Golf is considered the most important product of the largest German industrial group ./jap/DP/men
Market Wrap: Bitcoin Rebounds to $9,500 After Scary Sell-Off
Bitcoin suffered a quick sell-off on Wednesday after a previously dormant address moved some of the earliest-mined coins for the first time. While bitcoin’s price has recovered a bit, downward selling pressure remains and could have an impact on stakeholders, especially in the derivatives and mining sectors.
As of 20:00 UTC (4 p.m. ET), bitcoin (BTC) was trading at $9,529, a loss of 1.2% over 24 hours. Bitcoin moved below its 10-day and 50-day moving averages on high selling volume. It’s a signal of bearish sentiment after bitcoin dropped as low as $9,100 earlier in the day on spot exchanges including Bitstamp.After a few days of prices staying pretty much flat, bitcoin trading activity has picked up. However, that activity was mostly from sellers after one of the oldest bitcoin addresses suddenly showed signs of life, moving up to 50 BTC around for the first time in 11 years. That caused a quick 7% price drop within an hour.
This sell-off reminds traders to keep track of the oldest addresses in the bitcoin network, says Jose Llisterri, co-founder of crypto trading platform Interdax. “This occurrence highlights the importance of ‘address watching,’ monitoring the addresses of whales/early miners and the so-called ‘Satoshi coins’ mined in the first months of bitcoin.”
As of now, there is no evidence the 50 BTC were moved by accounts held by the pseudonymous “Satoshi Nakamoto,” the founder (or founders) of bitcoin.
While the price of bitcoin was able to recover some from the dip, stakeholders such as Mostafa Al-Mashita, head of business development for digital asset management firm Secure Digital Markets, are concerned the crypto market may be heading lower. “Coins from 2009 moving on-chain have definitely spooked some speculators about early players cashing out their coins,” said Al-Mashita.
Such selling also compounds losses because of leveraged derivatives positions that get liquidated. This dynamic is what exacerbated bitcoin’s massive drop in March to below $4,000 when BitMEX liquidations wiped out leveraged traders who were long crypto. Over $40 million in liquidations occurred during the time of bitcoin’s 7% drop Wednesday.
Another group of stakeholders watching the price carefully are miners. Bitcoin’s mining difficulty adjusted on Tuesday, a 6% drop in the computational resources needed for machines on the network to produce new coins. Mining difficulty is how much computational power it takes for miners to mine for bitcoin.
Since the halving, bitcoin’s total daily rewards has been reduced from roughly 1,800 down to 900 BTC. Miners are more sensitive to price than ever before, despite the recent easing of difficulty.
“The lower we go, the more sell volume from the miners. As their profit margins lower, they are forced to sell a higher percentage of coins,” added Thomas.
The biggest digital asset dips in 24-hour trading were tron (TRX) slipping 2.8%, monero (XMR) down 2.8% and ethereum classic (ETC) losing 2.6%. Gainers on the day include zcash (ZEC) climbing 1.7%, cardano (ADA) in the green 1% and dash (DASH) up less than a percent . All price changes were as of 20:05 UTC (4:05 p.m. ET) Wednesday.
In commodities, oil is making large gains, with the price for a barrel of crude up 5% at press time. Gold traded flat, with the yellow metal gaining less than a percent, priced at $1,749 at the close of New York trading.
Asia’s Nikkei 225 index closed trading Wednesday up less than a percent as mixed trading performances were attributed to Japanese business confidence hitting lows not seen in ten years. In Europe, the FTSE Eurotop 100 index of the largest companies by market capitalization closed the day up 1%.
In the U.S. the S&P 500 gained 1.6% on the day, up over 3% for the week. “Equities have had a good run,” says Rupert Douglas, head of institutional Sales at digital asset firm Koine. “I think that the Nasdaq might get to around 9700. If equities then sell off, I’m looking for BTC to be uncorrelated and rally strongly.”
U.S. Treasury bonds were mixed. Yields, which move in the opposite direction as price, were down most on the two-year bond, in the red 1%.
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