EU regulations are threatening the latest Bitcoin rally

Finance ministers from the European Union’s 28 member states will discuss a host of challenges posed by the growing popularity of digital assets and whether rules should be tightened, according to a draft note prepared for a Sept. 7 meeting in Vienna that was seen by Bloomberg News. They include a general lack of transparency and also crypto’s potential to be misused for money laundering, tax evasion and terrorist financing.

The Austrian government, currently holding the rotating EU presidency, did not respond to the immediate calls for comment on the document.

In Europe, dynamic price movements in virtual currency markets have alarmed authorities who have indicated that current EU laws do not offer investor protection. The European Commission, the EU executive, has pledged to follow developments and identify the need for further action with other agencies.

Regulators in Europe are also keen on harnessing the new technologies unleashed by digital currencies, according to the undated document. Initial coin offerings “have established an effective and efficient way to raise capital,” it said, adding that this development could also help integrate capital markets in the bloc.

Publishing the news did not lead to panic or turmoil in the crypto market. Bitcoin successfully maintained the $ 7,000 level by closing an entire bar above 50SMA, which is a positive signal. However, it's a good idea to wait for a small correction near the 6600-6800 levels if we want to position ourselves with a smaller stop loss.

An alternative price of less than $ 6000 would have Bitcoin returned to bears.

Source: Bloomberg Finance L.P.

Original post: The EU Is Taking Another Look at Regulating Crypto

Chart: Used with permission of Bloomberg Finance L.P.

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