This week, EU finance ministers will be called on to set clear and uniform guidelines on cryptography in the EU Member States, Reuters reports.
The Brussels think-tank, Bruegel, has prepared a new report on the cryptographic industry. It was created for EU finance ministers who are to meet on this Friday and Saturday in Vienna, Austria. The report pays particular attention to initial monetary offers (ICO) as well as to cryptocurrency exchanges, whose number in the Union is to increase this year.
According to the Bruegel report, Binance based in Hong Kong, following repression in Asia, is working on moving its headquarters to Malta. The Beijing crypto-exchange Huobi, also intends to enter the European market.
The team of experts says that while the new EU money laundering legislation will ultimately tighten controls on cryptographic exchanges by 2020, regulatory oversight is in practice left to the national authorities. Bruegel suggests that this fact "may suggest that there is a field for regulatory arbitrage," which may be tolerated in order to temporarily widen opportunities for all parties "in order to experiment and learn the best approaches to this fast-growing technology."
The group notes that virtual assets such as Bitcoin are inherent challenges for regulatory authorities in the cash markets. Nevertheless, entities that oversee production, exchange and trade through related speculative instruments may be subject to stricter rules and may even be banned. Such entities also include mining farms, which, as stated in the Bruegel document, are prohibited in countries such as China.
Think-tank suggested the need for more transparent rules for ICOs, especially considering the advantage of entities that use the model of raising funds for issuing utility tokens - which, as they are not securities, are largely unregulated by EU financial rules.
Let's now take a look at the Ethereum technical picture at the H4 time frame. The market has broken out of the triangle formation and made a lower low at the level of 206.54 after violating the technical support at the level of 246.61. The nearest resistance is now seen at the level of 235.17. Please notice the oversold market conditions and strong, negative momentum that is supporting the downward bias. The next technical support is seen at the level of 170.45.
