ECB President Warns of These Altcoin Projects: A Real Threat!

Altcoin: Christine Lagarde, President of the European Central Bank (ECB), shared that they want to regulate the lending and credit checks of Bitcoin and cryptocurrencies. Lagarde says some altcoin sectors will be a “real threat”.

Christine Lagarde: This altcoin industry is a ‘real threat’

According to Christine Lagarde, head of the European Central Bank, cryptocurrencies and DeFi really pose a significant threat to financial stability. Lagarde says that this danger will be observed as cryptocurrencies begin to play an important role in the larger economy. Lagarde now claims that there are only a few links between cryptocurrency and traditional finance.

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With MICA II, lending and credit controls of cryptocurrencies will be comprehensively regulated.

The European Central Bank (ECB) supports the rapid adoption of markets within the framework of cryptocurrencies (MiCA). The comprehensive regulatory framework for cryptocurrencies is expected to go into effect in 2024. According to Lagarde, a new version of the legal framework called MICA II could eventually cover cryptocurrencies and credit controls. As we have reported, the market is currently facing heavy scrutiny following Celsius’s reaching the brink of bankruptcy. The crypto lending platform had to stop withdrawals on June 13. Demanding more time from its investors, it has yet to pay back their money. Meanwhile, Lagarde said last month that cryptocurrencies are worthless. The failure caused by credit platforms like Celsius justifies the crypto opponents for now.

What happened to Celsius? How it affects the altcoin market

Celsius was one of the leading crypto lending platforms with over 1.7 million users, managing $12 billion in assets in May 2022. By mid-2022, the crypto market saw a massive sell-off. This caused some problems in Celsius.

With its existing funds, Celsius is unable to reimburse each customer if they withdraw their funds. According to the platform’s website, the decision to freeze withdrawals was taken as an attempt so Celsius can respect future withdrawal requests and navigate current turbulent market conditions.

As a result of this announcement, there was modest sales in the market and by competitors of Celsius. Depositors rushed to the platform to withdraw their money in anticipation that Celsius would go bankrupt. As a result, the price of the staking reward CEL suffered the biggest depreciation ever. It soon lost 70% of its value before recovering slightly in recent days.

CELUSDT 2022 06 22 19 56 41 In this article, we have discussed in detail what happened in Celsius. At the time of writing, CEL price is trading above the $1 support, down 20% in the last 24 hours.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing site 3 months ago.