Introduction
The cryptocurrency market is a rollercoaster. Some days you’ll be up, some days you’ll be down. However, the crypto world has seen ups and downs before and it will probably see them again in the future. The cryptocurrency market has been in a bear market for quite some time now and while experts are still predicting that this market will recover soon, there are no guarantees when that might happen exactly.
In this article we’re going to take a look at everything you need to know about the current state of the cryptocurrency market: why it’s down right now (and what might happen next) plus all the latest news about major players like Binance, Coinbase & Co.
Crypto exchanges are under pressure to get serious with KYC regulations, experts say
The crypto exchange sector is under pressure to get serious with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
“All of these regulations have been designed for a traditional financial industry,” said Ryan Taylor, CEO of Dash Core Group, during an interview with Cointelegraph. “I don’t think we can expect them to apply seamlessly or easily in the cryptocurrency space.”
The Financial Action Task Force (FATF), which was founded in 1989, has published several recommendations for member countries on how to combat money laundering and terrorist financing. In June 2018, FATF revised its AML recommendations by introducing stricter requirements for customer identification processes. This came after FATF had issued its first update in 10 years back in February 2018. In March 2019, FATF issued another update that included new requirements regarding Virtual Asset Service Providers (VASPs).
This month alone saw two important developments related to KYC/AML compliance:
- Coinbase announced it is launching a new compliance division that will require users who trade more than $10k worth of cryptocurrencies per month take part in “compliance verification.” The company also said it plans on implementing features like biometric identification cards and facial recognition software;
- Binance launched its own blockchain incubator called Binance Launchpad—a platform where startups can raise funding through token sales—in addition to announcing plans for five more projects scheduled this year including one called Trust Wallet which aims at reducing user friction when accessing cryptocurrency wallets through mobile devices
Top crypto exchanges have yet to recover from bear market slump
The bear market may be dragging on, but the top crypto exchanges have yet to recover from it.
Crypto analytics firm Fundstrat Global Advisors said in a recent report that the bear market has not yet entered its final phase and will continue for at least six months. The firm also warned that due diligence checks like know your customer (KYC) rules are putting pressure on crypto exchanges to clean up their act.
“The bottom line is that we believe regulations are coming and will be enforced,” said Sam Doctor, head of data science research at CFRA Research in New York City according to Bloomberg. “This could mean tighter restrictions regarding where cryptocurrency ETFs can hold their underlying investments and how they’re priced.”
Bear market is not going anywhere says crypto analytics firm
The crypto analytics firm, Chainalysis, has said that the bear market is not going anywhere. According to the firm, the bear market will continue for months and may last for years. The firm says that there are some reasons why this is happening:
- Lack of regulation in crypto markets
- Hacks that have happened recently
Ethereum 2.0 will be worth the wait, here’s why
Ethereum 2.0 will be worth the wait, here’s why
Ethereum 2.0 is a long-awaited upgrade to the Ethereum network. It’s been in development for years and has finally launched its testnet earlier this month. It promises to make major improvements to Ethereum’s transaction speed and cost by changing how nodes communicate with one another and how blocks are stored on the blockchain.
The release of the testnet represents an important step forward in getting this upgrade off the ground, but it also means there is still more work to be done before it can become fully operational as intended. Nevertheless, we believe that Ethereum 2.0 will be worth the wait because of its potential impact on other blockchains such as EOS and NEO that have similar scaling issues with their networks as well as larger organizations like Facebook working on integrating blockchain technology into their existing systems
Proof of Stake projects have surpassed PoW coins in terms of market cap value
Proof of Stake – PoS Cryptocurrency Projects.
Proof of Stake (PoS) projects have been rising in popularity over the past year. When the bear market started in January, these types of coins had a market cap value under $5 billion USD. Since then, they have more than doubled their market cap value to just over $10 billion USD! What’s more impressive is that they outperformed Proof of Work (PoW) cryptocurrencies by over 200%. What’s even more interesting is how quickly these PoS coins are growing compared to their counterparts; many analysts believe this trend will continue as we move through 2020 and beyond.
Crypto exchange Bitso establishes new base in Argentina; brings opportunities for local economy
Bitso, a Mexican crypto exchange, has established a base in Argentina. With this move, the company will be able to provide opportunities for local users by helping them invest in cryptocurrencies.
- Bitso’s new base in Argentina is likely to facilitate more investment opportunities for locals who have not been able to access cryptocurrency exchanges because of their country’s strict regulations on digital currencies.
- The company also plans to expand its services by launching an app that will help investors make transactions easier and faster.
Crypto prices are losing steam while investors wait for major news
Bitcoin and other cryptocurrencies are in the midst of their longest bear market since 2013, but experts say it could be a good time to buy.
A bear market is defined as a sustained period of falling prices that doesn’t see the asset recover over a long period of time. For example, if the price of bitcoin fell more than 20 percent in one day and stayed below its previous level for at least two weeks, it would be considered in bear territory.
“This is not something that you want to enter into as an investor,” said Hitesh Malviya , CEO of crypto startup UChain . “But if you’re already invested there and have some holdings, this might be a great opportunity to add some more.”
Bitcoin and other cryptocurrencies have recovered, but they are still in correction territory.
Bitcoin and other cryptocurrencies have recovered, but they are still in correction territory.
Don’t expect any sudden bursts of growth out of this market just yet—it’ll take time for former cryptocurrency investors who left during the bear market to return with their capital intact and ready for investment again.
Investors could be waiting for months for major price movements
The cryptocurrency market is still down from its peak in December 2017, and many investors are waiting for a recovery before buying more. Some investors may be waiting for regulations to be introduced by governments around the world.
Everything you need to know about cryptocurrency market
- The crypto market is in correction mode.
- The crypto market is still recovering from a bear market.
- The crypto market is still recovering from the worst crash in its history, which occurred at the beginning of 2018.
Conclusion
This is a dynamic and exciting time for cryptocurrency. We’re witnessing the birth of a new financial system, one that will bring freedom to billions of people around the world. There are many challenges ahead, but also opportunities for those willing to invest in this burgeoning market. If you want to get involved with crypto, learning how to now is an excellent time!