The crypto world is facing more turmoil. Is a new era of digital assets on the horizon?

Michal Baturko Olbert

In recent weeks, we have witnessed fascinating changes in the cryptocurrency markets. From the strange games of the US SEC, and the rather hypocritical, but not unexpected, approach of European banks, to the planned entry of the biggest traditional players into the world of cryptocurrencies, it looks like digital assets will play an increasingly important role.   

We are monitoring current events with keen interest. First of all, because we predicted this trend a long time ago, and we are building the entire Probinex project in such a way that it matches what the crypto world will look like in a few years.   

The current state of affairs thus in a sense confirms that our predictions were successful. So what exactly is happening? Let's take a look together!

Don't want to miss out on any news to come? Sign up to our newsletter today!

Cryptocurrencies temporarily placed under increased scrutiny 

A few weeks ago, some of us witnessed a high-profile manipulation of the cryptocurrency market. It all started with the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against popular cryptocurrency exchanges like Binance and Coinbase, labeling dozens of coins as so-called security tokens.

Security for tokens means that they can be considered a type of unregistered asset, and the fact that they are not registered is problematic. 

Meanwhile, in Europe, and also in the Czech Republic, there was more and more pressure from banks, which massively cancelled accounts of entities operating in the field of digital currencies. 

The tables have turned significantly 

The above-mentioned phenomena naturally aroused nervousness among all those who are involved in cryptocurrencies. However, it soon became apparent that this was a form of manipulative game in which the big players in the market were trying to push out those who were inconvenient to them.   

However, these games happen frequently and regularly, and the big players, which include Probinex, have years of experience with them. So we approach these reports with an open mind and rather look for the context of what the manipulators are trying to achieve. 

The first big twist came when the SEC tentatively agreed with Binance not to block its clients' deposits. 

Surprising news also came from Europe. Deutsche Bank announced that it plans to obtain a license for digital assets. It was joined by Raiffeisen, which firstly acquired one of the last banks in the Czech Republic that was still open to holding accounts for crypto firms, only to then close all accounts collectively, plunging a large number of firms into existential problems.   

Probinex, however, already had two alternative solutions in the negotiation at that time, so it did not endanger us, only limited the use of accounts held in Czech crowns for a few days. 

Interestingly, the Austrian branch of Raiffeisen has now announced that it will go into trading business itself in cooperation with Austrian firm Bitpanda

Even Sberbank, Russia's state-owned bank, has subsequently announced that it too will offer its clients the option of dealing with digital assets, starting this month. 

China bans crypto but applies for 84% of all the patents 

Another big surprise also occurred in the Far East. China, a country that completely banned cryptocurrency trading a few years ago, has reconsidered its stance. 

Not only has it allowed specific digital payments to be handled in Hong Kong, but it has also emerged that the majority of applications for global patents on cryptocurrency and blockchain-related technologies are originating in China. 

Binance's CEO, nicknamed CZ, has even stated that in his opinion, allowing cryptocurrencies in China may trigger a new bull run. 

The big players of the traditional world are entering the digital era

But what is the icing on the cake of all this turbulence? BlackRock, the world's largest asset manager, has announced that it has applied for approval in the US for an ETF spot on Bitcoin, on an accelerated basis.   

What's so special about that? For the first time, it won't be a derivative ETF, but an ETF backed by actual bitcoins! And with funds from around the world investing in this ETF, BlackRock will likely start buying bitcoins in bulk as the underlying asset for its fund. 

BlackRock started an avalanche with its announcement and other giants, such as Invesco and WisdomTree, immediately began to join in. 

What does all this mean?

The major players in the market have realized that the world of cryptocurrencies is a place where they have to play a major role. And they are often using rather unorthodox methods, which include market manipulation or the use of market dominance, to maintain their influence in the crypto world, where the cards are just beginning to be dealt.   

With the EU MiCA regulation coming into force in less than a year's time, it is clear that the big players are going to want to be there.  

Soon enough, a newer and bigger world of regulated digital asset markets may be coming, with representatives of the traditional financial world also entering the fray. 

We're ready! 

It is relatively easy to see the change in thinking at Raiffeisen in Austria. It has sensed that the soon-to-be regulated world of cryptocurrencies is an opportunity it must not miss. And we feel the same way.   

Probinex has been ready to enter a new era of the regulated cryptocurrency market since its beginnings. Unlike Binance, for example, which has faced challenges under regulation, we are entering this sphere with a clean slate. 

This is because Binance has not respected the rules in the Netherlands and has been repeatedly warned by local regulators that it does not have sufficient licenses to operate in the country. Last year, the exchange was even fined $3.35 million. All of this culminated in Binance failing to obtain a VASP license in the Netherlands and having to cease operations in the country. 

Probinex, on the other hand, managed to obtain a VASP license in Greece and is also targeting a CASP license. At the same time, we are ready to become one of the first projects to comply with the general MiCA set of regulations. This is currently approved by the European Parliament and will soon be implemented into Czech legislation. Our co-founder discussed its form with MEP Ondrej Kovařík at a recent panel discussion. 

I can't say that a new bullrun is coming, we will leave that to other experts, which we have several at Probinex. But there is a clear vibe in the air that something new is coming. And we're ready. Be a part of it with us!