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General

Supervising Crypto In Europe

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Supervising Crypto In Europe

 

End of June 2022, Cointelegraph.com published an article on the new agreement reached by the European Council to form an Anti-Money Laundering (AML) body that will have the authority to supervise certain crypto-asset services providers (CASPs).

But let's start with a summary first. The first flurry of regulation of crypto-assets appeared in Europe even before the pandemic in December 2019. Debugging took place throughout the first half of the following year, and in September 2020, the European Commission adopted it under the legislative designation draft regulation on markets in crypto-assets (MiCA for short).

A definite topic in the world of finance is currently the government regulation of cryptocurrencies, which is taking place across the globe. The approach in different states is diversified –  some states give cryptocurrencies a clear green light, others treat them more cautiously and introduce many regulatory regulations, and finally, there are states that have said a clear “no” to cryptocurrencies and banned them on their territory. 

The market segment with cryptocurrencies, estimated at $2.1 billion, is still subject to inconsistent regulation, which prevents the creation of legislative regulations that should prevent money laundering while protecting investors and creditors. 

However, increasing regulatory pressure is preventing crypto companies from innovating their products. For example, the cryptocurrency exchange Coinbase global warned that over-regulation would hamper innovation.

Image Source: Cointelegraph

Wild West Of Crypto Is Nigh

“We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules,” said European Parliament member Ernest Urtasun.

The European Council said it had agreed on a partial position of a proposal to launch a dedicated Anti-Money Laundering Authority or AMLA. According to the regulatory body, the AML body will have the authority to supervise “high-risk and cross-border financial entities,” including crypto firms — “if they are considered risky.”

First proposed in July 2021, the AMLA should be operational in 2024 and “start the work of direct supervision slightly later,” according to the European Commission. 

It is evident that the taming of cryptocurrencies in the EU is imminent. By regulators who don't understand it much.

Europen Central Bank, Frankfurt,  Germany

The European Central Bank (ECB) is calling for decisive regulation of cryptocurrencies. People are speculating on life savings because of them, which is not to the liking of the head of the bank, Christine Lagarde. Its approach does not seem to many analysts, according to which most regulators propose measures that are not really applicable in practice.

The first application of the new regulatory conditions around cryptocurrencies could come in the next few months. The European Commission has already presented such measures, and the European Parliament should finalize them soon.

This is MiCA regulation and, therefore, regulation aimed explicitly at crypto-assets. But analysts recall that most regulators do not understand cryptocurrencies at all and are therefore rather skeptical about the proposals.

In addition to Christine Lagarde, other ECB officials have previously expressed concerns about cryptocurrencies. One of them is executive board member Fabio Panetta, who said in April that crypto assets are creating a new wild west and compared them to the subprime mortgage crisis of 2008. 

On the other hand, European monetary policymakers have confidence in their new digital euro project, which could take place as early as the next four years.

"Basically, almost all traditional institutions view cryptocurrencies as something dangerous and potentially exploitable or as a tool for money laundering and unfair activities. In doing so, these fears are completely odd and senseless. Regulators mainly want to achieve the greatest possible monitoring of financial movements, " said Czech analyst Martin Kysela.

Cryptocurrencies And Crime

The suppression of illegal cryptocurrency trading is taking place on more fronts than it might seem at first glance. The fight against money laundering has already moved to Europe. 

German authorities announced a raid on the world's largest darknet market, in which they seized bitcoins worth 25 million euros. This raid was carried out in cooperation with the German cybercrime centre and the federal criminal police office (BKA). For what reason did the raid occur, and what was its result?

In a raid on the world's largest darknet network called Hydra market, 543 bitcoins were seized. This illegal network has reportedly been operating since 2015 and has read an incredible 17 million customers. 

In the Hydra market, more than 19 000 sellers were registered who focused on the sale of illegal narcotics. According to the press release, other items were seized during the raid, which brought profits to the sellers.

 

                      

 

Nanny Mentality Undermines Freedom Of Choice

On Dutch television, the president of the European Central Bank (ECB), Christine Lagarde, said this in May.

“Cryptocurrencies are based on nothing and should be regulated so that people avoid speculating with their life savings.” 

She is afraid that people who do not understand the risk can lose everything and be very disappointed. Therefore, she believes that cryptocurrencies should be regulated.

First of all – if Ch. Lagarde and others believe that cryptocurrencies are worthless, they would not be so afraid of them, which leads them to the regulations to which the cryptocurrency market is already subject today. 

Many people see cryptocurrencies as a sign of freedom (and it doesn't matter what anyone thinks about it), and the EU obviously doesn't like that. It seems the representatives of the EU think people are unruly and should be regulated. 🙂

In the black scenario, some crypto specialists think that regulation could significantly damage crypto services in the EU. It may trample on user privacy and expose users to the risk of personal information being hacked. As a result, it may have a minimal impact on the fight against money laundering, which the EU seeks with this law.

Cryptocurrency exchange Coinbase stressed that it is cash that continues to be a popular means of money laundering. Blockchain technology, unlike cash, has allowed authorities to track suspicious transactions using advanced analytical tools.

Cryptocurrencies are highly speculative investments (and therefore attractive). The principle of any highly speculative investment is that money moves from those who lose a lot of money on the speculation to those who make a lot of money on it. It is difficult to regulate anything on this.

It’s All About Control

Crypto is unwanted by the top politicians because it gives the owner immense freedom to dispose of their finances in their own way and store them wherever they want – without the need for control by any regulator.

By the way, this control requirement is fully in line with the current direction of EU policy. Therefore, it is undesirable for someone to have access to finances that can not be regulated. The regulation or abolition of bitcoin and other cryptocurrencies would bring us a step nearer to totality.

 

Source:

cointelegraph.com

Idnes.cz

Cryptosvet.cz

Forbes.cz

 

 

General

Traditions in month of May

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Traditions in month of May smiley

The month of May has many traditions. Spring is in full swing, nature is a great inspiration, the weather in the northern hemisphere is nicer and more stable.
On the first of May, the woman is to be kissed under a flowering tree, otherwise she will dry within a year. Yes, the woman. Maybe the tree as well ?
But don't despair, you can catch up in the next few days, a kiss under a blossoming cherry or apple tree will always please and enliven.
From Wikipedia:
A maypole is a tall wooden pole erected as a part of various European folk festivals, around which a maypole dance often takes place.
Sometimes the erection of a maypole is associated with great feasting and celebration with dancing.

Maypole  is the designation of an ornate tree trunk that forms a central element of the spring festivities spread throughout most of Europe. The maypole is most often built on April 30 or May 1, but in some areas it is built during the feast of St. George, Pentecost or most often the summer solstice. Mayas = maypoles  are traditionally renewed every year, this was also the case in the original form of the festivities, but somewhere they change over time, for example in England or Bavaria. In some cases the maypole is a permanent feature that is only utilised during the festival, although in other cases it is erected specifically for the purpose before being taken down again.


Origin

Primarily found within the nations of Germanic Europe and the neighbouring areas which they have influenced, its origins remain unknown. It has often been speculated that the maypole originally had some importance in the Germanic paganism of Iron Age and early Medieval cultures, and that the tradition survived Christianisation, albeit losing any original meaning that it had. It has been a recorded practice in many parts of Europe throughout the Medieval and Early Modern periods, although it became less popular in the 18th and 19th centuries.
The symbolism of the maypole has been continuously debated by folklorists for centuries, although no definitive answer has been found.
The Czech maypole (máj, májka in Czech language) has the form of a whole tree, deprived – with the exception of the upper part – of branches and bark. In some cases, the bare trunk is left to stand for several years and only the upper part is changed, in other cases it consists of two or three interconnected trunks to achieve greater height. The tree used is most often conifers such as spruce, but you can also find a birch lighthouse. The upper part is decorated with ribbons made of fabric or crepe paper and a decorated wreath is hung on it. The building of May is associated with the habit of its night guard, according to customs, it is usually until sunrise or the first rooster crowing, in front of men from neighboring villages who are trying to beat it or cut off its top. If they succeed, it is a great disgrace for the village.

Celebrating also with folklore dancing, South Moravia

   Ickwell maypole
 


Poet Jonathan Swift in his poem "A Maypole" describes a maypole as:

Deprived of root, and branch, and rind,
Yet flowers I bear of every kind:
And such is my prolific power,
They bloom in less than half an hour;

 

May you happy stay

the whole month of May 

Margaret
 

General

Inflation in European Union

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Inflation in European Union

The annual inflation rate in the European Union (comparing same month of the year 2021 to this year) rose to a record 7.8 percent in March from 6.2 percent in February. This was announced by the European statistical office Eurostat. The Czech Republic had the third highest inflation in the EU, at 11.9 percent.
Inflation in the euro area is now well above the European Central Bank's 2% target. Upward it is pushed especially by the rising energy. In March, energy prices in the euro area increased by 44.4 percent year-on-year.

The highest inflation in the EU was recorded in Lithuania, where consumer prices increased by 15.6 percent year-on-year. Second place went to Estonia with inflation of 14.8 percent. Czechia takes third place.

In an interview with the BBC,   the president of the World Bank, David Malpass said that war in Ukraine will make food more expensive by up to 37 percent, and the looming food crisis will cause human catastrophe in many poorer countries. Hundreds of millions of people are at risk of poverty and malnutrition if the crisis is not stopped.
The head of the World Bank warned that there is enough food for everyone in the world, and according to comparisons with the situation in the past, there are also high food stocks. But there is a need to change the way food is distributed to get where it is needed.

Here some examples of prices how it is influencing Czech Republic:
prices gasoline and diesel January 2022 were at petrol stations in the Czech Republic for an average of CZK 36.20,(approx 1,68 USD/liter) . But beginning of April gasoline was approx 2,27 USD/liter which means 38 % more  – this influences of course also the prices of public transport and transport of goods  – 22% up.
Foods – flour 63% more expensive than a year ago which has of course big influence on prices of bakery products. Butter and milk very similar. Bread – some economists say that in the second half of this year 1kg of bread can be even 70 CZK/3,10 USD – that might be increse by 40-50% in comparison with the price now.

This price development is supported by the fact that Czech government is inactive and does not want to do anything against this development arguing it is against rules of Europen Union – while for instance Polish government  decreased the VAT on foods.

This graf shows average prices of electricity in capital Praha – New year 2021 compared to New year 2022 = growth 48,49 %

The complicated situation applies also on enterprises
More than half of domestic enterprises expect their energy inputs to become more expensive by 50 percent or more. At the same time, the vast majority of companies will increase the prices of other cost items, such as input materials. This follows from the survey of the Chamber of Commerce. The most acute situation is in the manufacturing industry and construction.
A few days ago was published that inflation in Czech republic now is near to 13% – and if government will not do anything against it will still grow most probably.

But not every state in Europe has the same aproach – for instance Hungary  – The Hungarian government since 1. February  reduced prices for wheat flour, sugar, sunflower oil, milk, pork  and chicken breasts.

Evidently member states of European Union have different approach to the inflation, some politicians have more courage and the development this year might be still quite wild.

                            Thank you for reading

                                                                Margaret

 

Uncategorized

European Refugee Crisis

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European Refugee Crisis.

There seems to be little action taking place to resolve the situation and now they are talking of changing the rules laid down in the Dublin Agreement, which states that those seeking asylum in Europe need to apply in the first country they reach,

The rules have worked fine for years, however numbers have increased including large numbers of economic migrants who have swelled the numbers and do not qualify for asylum. Last year Germany announced it would accept anyone who reached it border and this effectively destroyed any form of control, causing millions of people to cross from Turkey to Greece and North Africa to Italy, Malta and France, many without documents. European countries were eventually forced to temporary close their borders as they could not cope.

Germany has now admitted that it cannot cope with the 1.1 million refugees and in it fact does not even know where over half of them are because they only registered names and country of origin before allowing them to travel to the area of Germany they wished to live in to apply for Asylum and it is possible that some may have left Germany for other countries.

Immigrant are increasingly being accused of causing problems in countries they are living in including Germany and Sweden, probably the worse case being in Calais where some 150 broke through security fences and 50 of them boarded a ferry bound for the UK. They complain about living conditions in the “Jungle” camps both in Calais and Dunkirk but are unlikely to use new facilities under construction by the French Government at Dunkirk as they fear they will become internment camps.

The truth is that many immigrants will not be granted asylum as they are merely economic migrants and not refugees whose lives are in danger. Law and order has broken down what is need is for refugees to be able to register as asylum seekers either before they travel to Europe or on arrival. There needs to be a way to fast track applications, rejecting those who are economic migrant who should apply for visa's in the normal way

UK Asylum – If someone is at risk of being persecuted in their own country, they may go abroad and ask for asylum in another country. Granting ‘asylum’ means giving someone permission to remain in another country because of that risk of persecution.

In legal terms, a person who has asked for asylum in the UK and is waiting for a decision on that claim is called an asylum seeker. Someone who has received a positive decision on his or her asylum claim is called a refugee.

Although some asylum seekers might enter the UK illegally, once they have applied for asylum they are no longer ‘illegal’. Anyone seeking protection is entitled to stay in the UK while awaiting a decision on their asylum claim.

The right to claim asylum is in international law. Governments are obliged to provide protection to people who meet the criteria for asylum. The UK has signed these international laws and they are part of UK legislation.

Alan Zibluk – Markethive Founding Member