Bitcoin rallied following a proposal from global regulators that would introduce capital requirements for banks dealing in crypto.
Bitcoin went up after a new rule was created that would make it so banks have to spend more money on Bitcoin. The International Organization of Securities Commissions issued draft proposals on Wednesday, which could be finalized by the end of 2019. This is good news for cryptocurrency traders, as it will make trading safer and more accessible to institutions. The new rules would apply to any bank or financial firm with over $100 billion in assets worldwide.
The committee, however, did not shy away from listing the risks that crypto poses to financial stability.
Financial regulators have again voiced their concern over the volatility of cryptocurrencies, with US Senator Elizabeth Warren stating that crypto markets are akin to “the Wild West” and a “poor investment.”
Bitcoin has remained within a $30,000 range for the past month following sharp declines in May when prices were near $60,000. The cryptocurrency debate’s been largely overshadowed by public criticism of its power needs and China’s regulatory crackdowns.
El Salvador has become the first country to formally adopt Bitcoin as legal tender, which gave Bitcoin a brief lift of about 8%.