- ECB’s Draghi says the regulation of virtual currencies is out of the bank’s power
- Bitcoin (BTCUSD on xStation5) surges on Draghi’s remarks, a key level to watch for
- Japanese watchdog starts surveillance of Bitcoin exchanges in the country
The Monday’s appearance of Mario Draghi ahead of the European Parliament did not bring larger swings across the euro currency pairs. However, he spurred traders to buy Bitcoin as he said that the regulation of virtual currencies is out of the ECB’s power. Draghi ensured the ECB has no a mandate to prohibit digital currencies like Bitcoin, he highlighted three major risks though. The first was the size, the second the extent of its use and the third an impact on the economy.
Even as he did not express any straightforwardly upbeat comments, the price of Bitcoin soared more than $150 in less than an hour. Let us also recall that Draghi referred to that topic at the latest ECB’s meeting answering a question of an Estonian reporter that no member of the euro area was allowed to introduce its own currency as the official currency was the euro. Even though there are many doubts over the cryptocurrency industry, that topic is becoming more common among central banks and other prominent institutions suggesting broader interest of usage it.
Draghi’s remarks sparked a notable increase of Bitcoin. The price has erased some of gains since then and it could head towards $3800 which seems to be a key level to watch. If it’s broken, a lower limit of a channel will be the last resort for bears. Source: xStation5
Moving on, Japan’s Financial Services Agency (FSA) has revealed that it will start a full review of Bitcoin exchanges operating in the country, which includes putting them under full surveillance starting in October. This step is to ensure they comply with the revised law which legalized bitcoin as a method of payment in April. Let’s also remind that the agency established a surveillance team last month consisting of 30 members, including agency and local finance bureau officials with relevant expertise.
Other news worth looking at:
- The Slovenian savings bank Hranilnica Lon has enabled the ability to purchase bitcoin with its classic automated teller machine (ATM)
- The US SEC will hold an investor advisory committee meeting on 12 October to discuss the implications of blockchain technology for securities markets