El Salvador rushes in new Bitcoin law to comply with IMF deal: Report

Opinion by: Elise Donovan, CEO of BVI Finance

Digital assets are on the rise. The market expects a softer approach to regulation following a surge in value. That has built on mainstream adoption, including a new United Kingdom pilot program to issue digital gilts and the launch of a multitude of exchange-traded funds by global asset managers.

Growing momentum

As this growing momentum is unlikely to change anytime soon, the rise will drive further demand for a more profound and complex global financial ecosystem to support the proliferation and increasing number of use cases for digital assets. In turn, this creates opportunities for jurisdictions that can meet the unique needs of a new breed of business that delivers on the promise of decentralized finance (DeFi).

As with any innovation in financial services, compounded by the fast-growing nature of the digital assets industry, support for growth must be balanced against mitigating risk.

With international financial centers well placed to support these businesses’ multinational, decentralized and agile nature, regulators are adopting a cautious, risk-based approach to digital asset business. Cooperation and shared best practices will be central to reducing the influence of bad actors and mitigating the reputational damage to individual jurisdictions resulting from incidents such as the collapse of FTX, Three Arrows Capital or Genesis.

International appeal

Over recent years, the number of virtual asset service providers authorized across international financial centers has soared. Many individual jurisdictions have demonstrated their regulatory strength to be sound hosts for digital asset businesses.

For example, the British Virgin Islands (BVI) has enacted legislation to become an environment for innovation in financial technology. Through laws such as the Virtual Assets Service Providers (VASP) Act, the regulator has taken a rigorous yet business-friendly approach to supervising digital assets. Speaking to this success, since 2023, the VASP Act was enshrined in law, and the BVI has received over 80 applications for licenses from digital asset businesses. Moreover, the jurisdiction’s regulatory sandbox allows firms to pilot innovative financial services solutions, unlocking new possibilities to address the need for digitization across the sector.

Recent: The UK’s overlooked regulatory superpowers

It also has robust measures to tackle financial crime, preventing financial system misuse from all businesses, including those in the burgeoning digital asset sector.

The actions of the Financial Investigation Agency and the Financial Services Commission to increase their internal expertise in digital assets and hire dedicated specialist analysts are just a few steps the BVI has taken to ensure a secure yet attractive proposition to international firms in the sector.

Indeed, the importance of individual jurisdictions creating centers for DeFi companies to securely conduct business cannot be understated. However, they cannot function in a vacuum; international collaboration and global initiatives are crucial, too.

Cooperation throughout the Caribbean and beyond

The Financial Action Task Force’s (FATF) standards on VASPs are an example of the international community coming together to address the market’s rapid growth and to ensure digital assets do not contribute to global money laundering and terrorist financing. As a leading member of FATF’s regional body in the Caribbean, the BVI encouraged this step forward. Should every jurisdiction be serious about providing a platform for the digital asset industry?

More can be done, particularly at the regional level. Europe’s Markets in Crypto-Assets (MiCA) regulation has established uniform European Union market rules for digital assets and demonstrated success in collaborating with its neighbors. It sets an example for other regions, including the Caribbean, to follow suit and adopt a cohesive approach to embracing innovations in finance.

The financial services community gathered at the Caribbean Regional Compliance Association Conference in October 2024. It was a discussion hub on the need for innovative, measured regulation that balances growth with security. Excessive legislation can stifle innovation, but thoughtful regulation throughout the region should aim to protect against financial crime and identify bad actors efficiently.

Addressing these issues requires robust regulatory systems, technological infrastructure and skilled personnel to enforce compliance effectively. These must be shared across jurisdictions, as without the necessary technological and institutional support, even the most well-crafted regulations can become ineffective.

Indeed, technological advancements in financial services’ ability to fight financial crime, particularly in digital assets, have improved drastically with innovations such as artificial intelligence. While AI can complement, not replace, human expertise, it can significantly reduce the time spent on repetitive manual tasks. Instead, it empowers personnel to become increasingly involved in investigative work, Know Your Customer protocols and communication with other compliance professionals in different jurisdictions. Moreover, the continuous education and training of personnel in the region’s financial services industry will not change in importance, no matter the technological improvements.

DeFi has enormous potential in the Caribbean. There needs to be an ongoing commitment in the region toward the sector’s high financial integrity and transparency standards. Without this, the region’s efforts to strengthen its position as an attractive and safe place to do business may fall short.

Opinion by: Elise Donovan, CEO of BVI Finance.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Dogecoin found support at $0.3050 and recovered some losses against the US Dollar. DOGE is now rising and might aim for more gains above $0.350.

• DOGE price started a decent increase above the $0.315 and $0.320 levels.
• The price is trading near the $0.3320 level and the 100-hourly simple moving average.
• There was a break above a major bearish trend line with resistance at $0.330 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start another increase if it clears the $0.340 and $0.3480 resistance levels.

Dogecoin Price Aims Higher

Dogecoin price started a fresh decline from the $0.3850 resistance zone, unlike Bitcoin and Ethereum. DOGE dipped below the $0.3500 and $0.3350 support levels. It even spiked below $0.320.

A low was formed at $0.3052 and the price is now rising above the 50% Fib retracement level of the downward move from the $0.3599 swing high to the $0.3052 low. There was a break above a major bearish trend line with resistance at $0.330 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading above the $0.330 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.3390 level and 61.8% Fib retracement level of the downward move from the $0.3599 swing high to the $0.3052 low.

The first major resistance for the bulls could be near the $0.3480 level. The next major resistance is near the $0.3550 level. A close above the $0.3550 resistance might send the price toward the $0.3660 resistance. Any more gains might send the price toward the $0.3880 level. The next major stop for the bulls might be $0.40.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.340 level, it could start another decline. Initial support on the downside is near the $0.3250 level. The next major support is near the $0.3150 level.

The main support sits at $0.3150. If there is a downside break below the $0.3150 support, the price could decline further. In the stated case, the price might decline toward the $0.3020 level or even $0.300 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.3250 and $0.3150.

Major Resistance Levels – $0.3400 and $0.3480.

The Tombola Livestream, happening on January 30, 2025, will present a new feature inspired by inscriptions from Core and IceCreamSwap. Livestreams often serve to boost community engagement and provide direct access to information about new features, potentially swaying investor interest and positively influencing prices. If the Tombola feature appears to offer real benefits or sparks enthusiasm during the livestream, it could lead to a price surge for both CORE and ICE. However, if the presentation lacks clarity or excitement, there might be little impact. source

Jackal Protocol is introducing a decentralized storage app for NFT collections named Jackal Pin on February 4, 2025. The launch of this app represents a significant step in decentralizing NFT data storage, which could increase demand for Jackal Protocol if it proves effective and user-friendly. This innovation may attract NFT enthusiasts and investors, creating upward pressure on JKL's price if widely adopted. However, if Jackal Pin does not meet expectations, or if there are competitors in the same space, the price impact might be minimal. source

The Neutron V5.1 upgrade is scheduled for February 12, 2025, at block height 19947000. Network upgrades often have a strong influence on the crypto’s price, as they can introduce new features or improve security. This could attract more users or investors, leading to a price increase. If the upgrade is successful and well-received, it could boost confidence in Neutron. On the other hand, technical issues during the upgrade could create doubt and affect the price negatively. Investors should watch closely before making decisions. source

Reality Labs, the research arm of social media giant Meta Platforms, bled even more billions over the last quarter, but Meta boss Mark Zuckerberg says 2025 is the year for the metaverse.

Meta’s fourth-quarter and full-year results for 2024, shared on Jan. 29, show Reality Labs’ Q4 operating losses hit $4.97 billion, while it brought in just over $1 billion in revenue.

Its full-year 2024 revenue jumped 13% year-on-year to $2.15 billion while operating losses rose 10% to $17.73 billion. Reality Labs has now lost over $60 billion since 2020.

“This is also going to be a pivotal year for the metaverse,” Zuckerberg told investors on an earnings call, adding that the number of users for its augmented reality hardware and metaverse “has been steadily growing.”

Reality Labs is Meta’s division focused on making its virtual and augmented reality tech, such as its line of Quest VR headsets and its Horizon metaverse, but it has also become increasingly intertwined with the firm’s artificial intelligence initiatives.