- The Bank of England (BoE) has clarified that stringent crypto regulations can be adopted following the US$2 trillion collapse of the crypto assets.
- The global crypto market cap stood at US$900.35 billion, down by 1.74% over a day with a 24-hour trading volume of US$67.56 billion, according to CoinMarketCap.
The Bank of England (BoE) has said that crypto assets pose an imminent threat to the financial system at present and there is a need for tougher laws to regulate the market. Highlighting the vulnerability aspect of the cryptos, the central bank said that the US$2 trillion crash underpins the need for enhanced law enforcement frameworks to address such systemic risks.
The global crypto market cap on 6 June stood at US$900.35 billion, down by 1.74%, over a day with a 24-hour trading volume of US$67.56 billion at 7:30 AM (GMT +1), according to CoinMarketCap.
On Wednesday, leading cryptos such as Bitcoin and Ethereum were having a bad day at the market. While BTC was down by 1.45% over a day and was trading at US$20,059.22, ETH was trading at US$1,133.64 and was down by 2.12% in the last 24 hours.
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The central bank also cautioned against the unbacked crypto world and the stablecoin, suggesting that they could pose a risk to the stability of the UK financial system. The regulators in the UK and Europe have been toughening their stance against the crypto industry.
Recently, on 30 June the EU lawmakers reached a provisional agreement on its landmark MiCA bill. With the MiCA bill, the EU lawmakers would see a new regime in all 27 member states.
Though investing in cryptos is a risky affair, we can look at three blockchain stocks that may see ups and downs in the current volatile market.
Online Blockchain Plc (LON: OBC)
The UK-based blockchain research and development company’s market cap stood at £2.43 million as of 6 July. Online Blockchain primarily acts as an incubator in internet and information businesses and custodians of cryptocurrencies and blockchains.
The OBC stock has taken a hit of late. Its one-year and YTD returns are in the negative territory as of 6 July, at -54.42% and -62.08%, respectively. On Wednesday, the FTSE AIM All-Share listed company’s shares were trading at GBX 17.00 at 8:10 AM (GMT+1) on 6 July.
Argo Blockchain Plc (LON: ARB)
Argo blockchain technology is a world-leading cryptocurrency miner specialising in using renewable sources of power to support the development of blockchain technologies. Argo’s performance has taken a toll, with both one-year and YTD returns struggling in the negative territory as of 6 July, at -73.23% and -64.97%, respectively. The company’s market cap stood at £162.46 million, with its shares trading at GBX 35.00, up by 2.94%, at 8:10 AM (GMT+1) on Wednesday.
Quantum Blockchain Technologies Plc (LON: QBT)
The FTSE AIM All-Share-listed investment company is engaged in the commencement of an aggressive R&D and investments programme in blockchain technology. It had recently reported a comprehensive loss of €5,396,000 in FY 2021, up from €1,208,000 in FY2020. Its pre-tax loss stood at €5,449,000, up from €1,208,000 in FY 2020.
Over the past year, the company has given its investors a positive return of 38.39%, while its YTD return stood at -52.90%. The company’s market cap stood at £14.46 million, with its shares trading at GBX 1.45 at 8:10 AM (GMT+1) on Wednesday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.