As major market shake-ups and upsets continue in the crypto currency world, the European Union appears to have woken up to the need for regulatory oversight and investor protections.
Consequently, last Thursday the European Parliament’s Council, after hours of negotiations in Brussels, has agreed on the contentious topic of regulating crypto-asset transfers.
The development came on the day when about 82,258 BTC trades worth US$227.32million have been liquidated, raising the level of fear from 13 to 11, signalling extreme fear among investors.
The continental regulatory intervention is also coming at the backdrop of the institutions finalized measures aimed at stamping out
money laundering in crypto a day earlier.
The new law, known as Markets in Crypto-Assets (MiCA), is the first attempt at creating a comprehensive regulatory framework for digital assets in the region.
EU lawmaker, Stefan Berger, said the rules will “put order in the Wild West of crypto assets.”
The new regulatory framework would compel cryptocurrency issuers to obtain a MICA license with a predetermined capital base and adhere to consumer protection standards. While they are scheduled to go into effect in 2023, analysts expect the proposed agreement will be met.
However, the agreement should include the issuance of coins, their underlying assets, and market manipulation surveillance.
According to a recent Twitter poll by Plan B, 32.6 percent of the sample survey indicated that bitcoin’s bottom would be between $10,000 and $15,000. Bitcoin’s daily returns
plunged more than -3.66% from -0.79% yesterday, trading in the US$19,299.79 and US$20,537 area.
Furthermore, the drop in the price of BTC has caused other significant coins to fall in the last 24 hours, with ETH down by -6.71%, BNB fell by -4.75%, and XRP down by -4.56%. Analysts predict the bearish trend will continue if BTC fails to cross the US21,000 price level.
Nigeria is already heavy on crypto industry as a major market worldwide.
According to a report by Chainalysis, a blockchain data platform, the cryptocurrency market in Nigeria and other African countries grew by 1200 per cent in 2021. The firm added that Nigeria is the sixth leading country in the world in terms of cryptocurrency adoption as a result of its peer-to-peer monetary systems.
Afreximbank Board renews $1bn facility to operationalise AfCFTA
By Emma Ujah, Abuja Bureau Chief The Board of Directors of
the African Export-Import Bank (Afreximbank) has renewed its approval of a $1$1 billion facility to operationalise the African Continental Free Trade Agreement (AfCFTA) Adjustment Funds.
The renewal was approved at its 134th meeting in Cairo, Egypt, according to a statement by the bank, yesterday.
It added that a $10 million Grant Funding to seed the Base Fund of the AfCFTA Adjustment Funds, was equally approved.
Afreximbank and the AfCFTA Secretariat were mandated by the AfCFTA Council of Trade Ministers and the African Union Heads of State and Government to establish and operationalise the AfCFTA Adjustment Funds, which consists of the Base Fund, the General Fund, and the Credit Fund.
The Base Fund will be used to mobilise grants to address tariff revenue losses and to support AfCFTA State Parties to implement the various protocols under the Free Trade Agreement.
The General Fund will be used to mobilise concessional funding, while the Credit Fund will be used to mobilise commercial funding that will be used to support the public and private sector including small and medium enterprises (SMEs), youth and women to adjust to the new trading environment arising from the AfCFTA.
Commenting on the approvals, Professor Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank, said, “Afreximbank is delighted to have been appointed the Fund Manager of the AfCFTA Adjustment Funds following the extensive collaborative work it has done with the AfCFTA Secretariat and the African Union Commission during the past few years.
“The renewal of the US$1 billion facility and the US$10 million grant funding represents resounding entrustment by our Board of Directors of these efforts. These facilities will again be contributing to making a great idea a reality. We thank the AfCFTA Secretariat for the solid partnership that is bringing the
aspirations of the AfCFTA within reach.”
The funding required under the Adjustment Funds is estimated at $8-10 billion. The AfCFTA Adjustment Fund will be managed by Afreximbank, through its subsidiary, the Fund for Export Development in Africa (FEDA), in collaboration with the AfCFTA Secretariat.
“The endorsement by the Afreximbank Board brings the continent closer to operationalising the AfCFTA Adjustment Funds before the end of 2022.
“We urge other development partners and financial institutions to provide additional resources required under the Adjustment Funds to support the implementation of the AfCFTA”, said Mr. Wamkele Mene, the Secretary-General of the AfCFTA Secretariat.