Bitcoin Ticks Up, French Senate Commission Releases Crypto Report
Bitcoin prices are trading slightly up today. On BTC-E, we opened the trading session at $580 per coin. From here, everyone’s favorite cryptocurrency rallied 8 points to hit a daily high of $588.50. Since then however, the move up has reversed and prices are currently trading just barely above the daily open at $583.80. Going forward, the resistance at $600 and the support at $550 will be important milestones for determining future price movement. Here’s how today looked on BTC-E.
The Finance Commission of the French Senate released its report on Bitcoin and Virtual Currencies.The commission is of the opinion that despite the potential risks associated with bitcoin’s anonymity, the crypto holds promise ”as both as a payment system and as a decentralized validation protocol.” Authorities should work on a well-balanced regulatory framework, in order to prevent abuses while preserving the capacity of innovation, the body recommended. The commission thinks that the existing French regulatory framework is sufficient but added that ”the clarification of the regulatory framework applicable to virtual currencies is to be carried out at the European level.” The complete french version can be found here. Here’s a link to a shorter summary in English.
This somewhat overlaps with the position of the European Banking Authority, which also called for Euro wide regulation for cryptocurrencies. Few weeks ago, the EBA warned European banks against engaging in virtual currencies until new rules are put in place. This is somewhat worrying as some of EBA’s proposals went as far as calling for the creation of a centralized entity that would be responsible for bitcoin. Here’s the relevant part of the EBA proposal on SGAs ”Scheme Governance Authority, which is a non-governmental entity that establishes and governs the rules for the use of a particular VC scheme. It is a legal person, and is responsible for maintaining the integrity of the central transaction ledger, the protocol, and any other core functional component of the scheme.” If the government decides to copy any EU wide rules, the French people may find themselves in a much stricter regulatory environment compared to the one they have now.