EU Watchdog Suggests Limiting Leverage for Crypto Trading

In a statement on Thursday, May 25, the EU watchdog said that it is working to stop shocks that would jeopardize the financial stability elsewhere. The European Systemic Risk Board made several recommendations ranging from asking all crypto firms to submit regular reports as well as introducing specific rules for some of the biggest players in the space. In its report, the ESRB said:

advertisement

“Systemic risks could arise quickly and suddenly. If the rapid growth trends observed in recent years were to continue, crypto-assets could pose risks to financial stability.”

Thus, they have proposed a few changes to the recently passed MiCA regulations such as “introducing leverage limits for investment funds exposed to crypto-assets”. Additionally, the ESRB also called for limiting the crypto firm’s ability to lend tokens to its clients, which has been one of the popular ways of making high-leveraged bets. Furthermore, the ESRB asked for setting up high collateral requirements for distributed finance products and stablecoins.

EU And Its MiCA Laws

This development comes just 10 days after the EU Council approved the Markets in Crypto-Assets (MiCA) legislation. The member states of the EU and the European Parliament have collectively adopted MiCA rules which make sure that crypto businesses seek authorization from the EU to serve customers within the bloc.

Recommended Articles
ethereum price crypto news
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
crypto exchange affiliate programs
Best Crypto Exchange Affiliate Programs In 2023
Must Read
ethereum price crypto news
Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must Read
ethereum price crypto news
Crypto Telegram Channels List 2023 [Updated]
Must Read
ethereum price crypto news
Top 10 Web3 Games To Explore In 2023; Here List
Must Read

Additionally, these businesses should also comply with protections to prevent issues of money laundering or terror financing. The EU has come up with MiCA rules finally after a major shakeout in the crypto space and some high-profile collapses happening last year.

The recent recommendations from the ESRB are not bindings but rather shall inform the EU’s future work on the new versions of its crypto assets regulation (MiCA).

Comments

Post a Comment

Popular posts from this blog

XRP Facing Bear vs Bull Showdown; Who Will Win

Image
The Balance in XRP Price Swing At the time of writing, XRP is changing hands at a price of $0.5129, down by 4.15% over the past 24 hours. XRP bulls were earlier active as the coin shot up as high as 4% in earlier trading after shedding off all of its gains. advertisement Despite the obvious price slump, the digital currencies’ trading volume showcases a difference in actions between the bulls and bears. The coin’s trading volume has retained an upsurge of 3.2% in the past 24 hours with the volume pegged at $1.418 billion. XRP Price Chart. Source: Coingape While the outlook appears bearish at this time, it remains to be seen who will win the fight for dominance between the buyers and sellers. As a volatile market, the current trend appears to be favorable for bears and whether or not the current trend will matter is dependent on general market sentiment. XRP remains an attractive coin, despite the fact that a slight uncertainty is hovering around its fu
Read more

Terra Classic Officially Releases v2.1.0 Parity Upgrade Proposal

Image
It is one of the biggest upgrades since the Terra Classic community took charge of the blockchain after the Terra -LUNA crisis in May last year. Primarily, it will bring Terra Classic to parity with other blockchains such as Terra 2.0 and other Cosmos chains. Thus, allowing projects and developers to once again build on the Terra Classic chain. advertisement Joint L1 Task Force (LITF) project manager LuncBurnArmy took to Twitter to reveal that the v2.1.0 Upgrade proposal is officially out and can be reviewed on the Commonwealth portal. He also revealed that the proposal will go for voting on June 7 and the upgrade to happen as scheduled on June 14. The parity is also essential for introducing Interchain Accounts (IBA) into Terra Classic (LUNC), as professor and core developer Edward Kim stated. IBA will bring AI app chain Block Entropy to the Terra Classic chain. Meanwhile, the community can obtain the Testnet tokens from the Block Entropy TestNet Fauce
Read more

Elon Musk imposes 'rate limit' on Twitter citing extreme ‘system manipulation’

Image
Verified Twitter users will be allowed to view 10,000 posts per day, while new, unverified accounts will get 500 under the new limits. Social media platform Twitter is temporarily limit ing the number of posts that users will be allowed to read per day, after seeing “ extreme levels of data scraping and system manipulation ,” according to executive chairman Elon Musk. In a July 1 post, Musk said the temporary limit s will see verified accounts capped at 10,000 posts per day, while unverified and new, unverified accounts are capped at 1,000 and 500 posts per day respectively: Now to 10k, 1k & 0.5k — Elon Musk (@elonmusk) July 1, 2023 Twitter users had been reporting issues on the platform over the last few days including the inability to retrieve tweets, missing timelines, and being met with a "rate limited exceeded" message, leading to the hashtag #TwitterDown #TwitterFail to trend in certain jurisdictions. A screenshot of a Twitter user’s account — having reached t
Read more