The cryptocurrency market witnessed some gains yesterday after the losses suffered the day before yesterday, which extended for about a week, as bitcoin is trying to consolidate above the level of 26800 dollars after losing all its gains recorded during October and descended to the level of 26521 in yesterday’s maximum declines, the lowest level since September 28, as well as Ethereum is trying to maintain the level of 1560 dollars, after reaching the lowest levels a month ago with reaching the level of 1545 dollars yesterday.
These declines in the cryptocurrency market come amid the predominance of negative sentiment with the continued dominance of regulatory concerns surrounding this market, in the absence of fundamentally positive developments that may restore some confidence to investors.
In new regulatory developments, we have seen the filing of two friendly briefs by the North American Securities Managers Association (NASAA) as well as two academic lawyers to support the SEC conciliator in her case against the cryptocurrency exchange, Coinbase.
The memos point to the emphasis on the authority’s supervision of the cryptocurrency market, which has created an environment for large-scale frauds, and that crypto assets are not distinguished from securities, which must be declared, which requires the intervention of law enforcement authorities.
Thus, Coinbase actually operates an exchange for unauthorized assets, the memos also said that crypto assets do not carry any economic benefit and are not widely adopted only for speculative purposes.
In addition, we have witnessed a warning by the European Securities and Markets Authority (ESMA) to investors about the danger of the decentralized financial market (DeFi), although the authority stated that this market constitutes only 40 billion dollars out of more than a trillion dollars of the cryptocurrency market as a whole, but it should remain under surveillance. This technology, despite the flexibility it offers to users, however, its use involves high risks.
The commission cited the speculative and dangerous nature of this technology and the lack of transparency in transactions and the lack of knowledge of the parties that are dealt with through the various protocols that anyone can create.
It seems that weak confidence and regulatory concerns have clouded the atmosphere of the cryptocurrency market for a long time, which may prevent further widespread adoption of this technology.
