• Bafin is aware that some of the German financial institutions are involved in cryptocurrency trading

  • Bitcoin (BITCOIN on xStation5) re-approaches the 61.8% Fibo level

  • Bank of Thailand explores the potential of blockchain in order to launch central bank digital currency

The major cryptocurrencies managed to recover somewhat during past 24 hours with coins like Bitcoin or Ethereum re-approaching their prior swing levels. The capitalization of the whole market sits subtly below the $350 billion. In Germany the country’s regulator has revealed that despite the lack of regulations cryptocurrency trading may not be as unknown to the banks as some may thought it is. Later on we will move to the US where one of the crypto finance firms is seeking a banking license at federal level. On top of that we will mention the Thai central bank as it seeks to embrace the potential of the blockchain technology.

The German financial regulator Bafin revealed some interesting informations concerning cryptocurrency trading following a question asked by the Bundestag member Thomas Lutze. It turns out that at least six German banks are involved in cryptocurrency trading activities and the country’s watchdog is fully aware of it. The regulator explained that each entity that has received permission to trade properties is also allowed to trade digital assets against fiat currencies therefore no breach of law has occurred. Moreover, country’s authorities said that no case connected to the cryptocurrencies, for example money laundering, has been registered with Bafin. The German Finance ministry stated that in its view cryptocurrencies does not pose a threat to the stability of the financial system due to their low capitalization in comparison to the traditional assets.

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BITCOIN is eyeing a retest of the 61.8% Fibo level at $7730. A failure to break above may result in a pull back. The 33-period moving average at the H4 interval (green line on chart) may be a technical support level to watch. Source: xStation5

Circle, a crypto finance company backed by the Goldman Sachs, is said to be conducting negotiations with the US regulators over the issuance of the federal banking license and registering the company as a securities exchange. If it succeeds in convincing the watchdog to issue them such a license it will become the first cryptocurrency exchange to be regulated at federal level. The Circle’s authorities claim that such license would enable them to deliver their services more efficiently and at lower cost. Company’s CEO Jeremy Allaire is fully aware of the lack of the cryptocurrency sphere regulations at federal level may make it hard to obtain a banking license yet he states that in the future such regulations will be need anyway and therefore his company can serve as “a great guinea pig”.

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RIPPLE continues its march towards a $0.70 handle. Keep in mind that the 38.2% retracement level of the decline started at April’s high is localized there so the supply side may loom higher. Investors should watch the short term upward trendline as well as the 33-period moving average as they may serve a technical support levels. Source: xStation5

The Bank of Thailand is looking into adoption of the blockchain technology in the interbank clearing and settlement system. Central bank’s governor Veerathai Santiprabhob has revealed during an event in Singapore that the BoT is currently developing the central bank cryptocurrency that would enable for fast and cheaper transactions at interbank level. The Governor stated that the immediate and wide use of the coin will not be possible as the central bank seeks to embrace the possibilities the blockchain offers ahead of making actual use of it. However, once the perks of such digital currency will be more recognized the real life use at a larger scale will be just a matter of time.