The EU are coming Into Agreement On Cryptocurrency Regulation
The collapse of the terra system coin has led to several speculations across and between the crypto space and the FG(s). But just as we all expected, the FG, especially from the EU governments are now taking crypto regulations seriously. But don’t forget, that First they ignore you, then they laugh at you, then they fight you, then you break all of your own shit and fight yourself, then you win.
We've been ignored for so many years now and we are in the phase of being fought. Although, some countries like El Salvador have embraced Blockchain technology while the rest are fighting us.
The truth is, they will disbelieve to believe. Which is always fine. But as things are moving with crypto, we've had bad situations where it all now seemed like this process is becoming stricter. The Luna story for example.
Before the fall of the Terra system, I have always been bothered to see the crypto market crash and what the Fg would have to say about it. While Bitcoin was at $60k+, we all enjoyed the positive talks and hype around crypto on CT. But for me, I wasn't carried away by the hype because I sure know that prices wouldn't be appreciating all the time and that the bear market will hit us soon.
When the bear came, I literally saw how several national tv stations seemed happy broadcasting the fall of the crypto market. To worsen things, the fall of the terra system gave them more reason to hate on crypto and blockchain products.
What Made It Worse?
As I have stated, Bears are real and the bad talkers will surely come at us when it's time. But when the project or product that we hope the world adopts messes up, then the whole system is f**cked up. Terra collapse once again is a good example. At terra, not just the Luna token that fell but their prominent stable coin ($ust) also depegged. This really raised alarm around anything that has to do with crypto. If crypto coins are falling, stable coins shouldn't.
Stablecoins are cryptos that are tied to a reserve asset such as a currency (like the dollar or euro) or a commodity (like gold, oil or real estate). Backing by other assets makes the value of stablecoins less prone to roller-coaster changes in price, hence the name.
The terra ust was meant to be a stable coin and the reason why its users took it as a safe haven was to keep their funds safe regardless of the status of the crypto market. But unfortunately, it got collapsed, then users started to disbelieve crypto stable coins.
The current EU take on cryptocurrencies
The above reason brought about worries and disbelieves across crypto stables coins which had led the federal government to take crypto regulations seriously. The Eu claims to provide protection and safeguards against market manipulation for consumers.
The European Union has said to be closing an agreement to regulate cryptocurrency. The regulators may meet on June 14 and then meet to a conclusion on the 30th of June according to Bloomberg.
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