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The crypto landscape experienced notable fluctuations on Friday, March 28, as major cryptocurrencies faced a downturn in their trading values. Bitcoin, the leading cryptocurrency, saw its price drop by 3.1 percent over the past 24 hours to US$85,205.95, influenced by wider economic concerns prompted by the U.S. President’s announcement of increased tariffs on imported automobiles. This decision stoked fears of an escalating trade war and a potential slowdown in the global economy, leading investors to move away from riskier assets. Ethereum wasn’t spared either, with its value dipping by 6.7 percent, trading at US$1,908.11. The altcoin sector mirrored this downtrend, with Solana, XRP, and others registering significant declines.
In regulatory news, the United Arab Emirates is advancing its plans to introduce a central bank digital currency (CBDC), dubbed the Digital Dirham, set for retail use by the end of 2025. This move reflects a growing global trend towards digitizing national currencies to enhance financial security, streamline transactions, and ensure regulatory oversight. The UAE’s CBDC initiative aims to support retail, wholesale, and cross-border transactions, making the Digital Dirham accessible through licensed financial entities. This step is part of the broader effort by the UAE to regulate stablecoins and digital currencies, marking a significant milestone in the crypto space.
In the United Kingdom, the Financial Conduct Authority (FCA) is set to ramp up its regulatory measures for crypto firms. A new authorization framework scheduled for implementation in 2026 will necessitate crypto businesses to obtain explicit authorization to operate, extending beyond the current anti-money laundering (AML) compliance requirements. This shift signifies a major increase in regulatory scrutiny, with implications for major exchanges like Coinbase and Gemini, among others. The FCA’s decision stems from its objective to enhance compliance and security within the crypto industry, following a strict vetting process that has seen only a small fraction of applicants successfully register under its existing AML framework since 2020.
Lastly, the financial services giant BlackRock has broadened the reach of its Bitcoin offerings, introducing a Bitcoin exchange-traded product (ETP) in Europe, available on leading exchanges such as Xetra, Euronext Amsterdam, and Euronext Paris. This expansion marks a significant development in institutional cryptocurrency adoption in Europe, echoing BlackRock’s successful launch of its iShares Bitcoin Trust ETF in the United States. However, analysts forecast that European investor interest in the Bitcoin ETP may not mirror the enthusiastic reception seen in the U.S., pointing to differences in market structure, investor preferences, and regulatory clarity. Despite this, BlackRock’s foray into the European market could serve as a catalyst for increased institutional engagement in cryptocurrencies, although widespread adoption is expected to unfold gradually as regulatory landscapes continue to evolve.
