Thread by @LindaPJones

🧵The European Central Bank (ECB) wants to get crypto regulations going because of financial stability concerns. Tether and Bitcoin are in its crosshairs.

ecb.europa.eu/press/key/date…

#Tether #Cryptocurrencynews 1/6

It specifically mentioned Tether, and is concerned in case of "large scale sales of these assets" that could "generate instability throughout the commercial paper market." 2/6

Along with KYC and anti-money laundering requirements, it recommends greater disclosure of reserve assets backing Stablecoins. Hint: Tether. 3/6

Regulators are moving forward and are coordinating globally. 4/6

And, Bitcoin Maxi's, sorry, but "there could be a case for higher taxation of some cryptocurrencies", those that use PoW, due to high pollution. 5/6

In conclusion, watch for possible problems with redemptions that will result in Tether having to disclose what actually backs it and for that to reveal possible systemic risks that will result in global regulations. Oh, and a higher tax on BTC than other cryptos. 6/6

@threadreaderapp unroll please