30.01.202313:15 Forex Analysis & Reviews: Kazakhstan has developed its own law

The price of bitcoin dropped abruptly from a level of $24,000 to $23,900 this morning during the trade. The ether was also drawn to its maximum but never updated. Additionally, the lawmakers in Nur-Sultan adopted the final draft of the law "On Digital Assets in the Republic of Kazakhstan" while many other markets, including the cryptocurrency market, awaited the Federal Reserve System's decision. The country's cryptocurrency market is now regulated by new legislation, which includes several other bills and establishes a licensing system for cryptocurrency exchanges and miners.

Today, it was made public that the Senate had approved the cryptocurrency bill and had forwarded it to Kazakhstan's president for his signature. The law aims to control cryptocurrency-related activity. The new law "On Digital Assets in the Republic of Kazakhstan" establishes the prerequisites for the development of a crypto ecosystem in the nation, along with other legislative papers.

Let me remind you that the upper chamber of Parliament deputies evaluated a complete package at the beginning of January and decided to make several specific adjustments, which were then adopted. The Law on Digital Assets and associated acts make up a single body of legislation that will enable the head of state of Kazakhstan to carry out his regulatory responsibilities regarding the creation and use of digital currencies. The bill and other essential adjustments made by senators, such as those to the laws of Kazakhstan on taxes and other payments to the budget, judicial administration, and administrative offenses, have not yet been approved by Tokayev, although it is anticipated that he will do so soon.

The primary objective of the government, according to legislators, is to control the operations of businesses that produce digital tokens and currencies in the nation. It is important to note that since China banned this kind of business, Kazakhstan has been highly popular among miners. However, the miners quickly came under public pressure because of their arrival, which caused a power crisis in the nation.

By requiring licenses for both cryptocurrency exchanges and miners, the new measure establishes a regulatory framework for the industry and legalizes the digital asset market. The government also anticipates increased foreign investment and higher state budget receipts as a result of this.

According to the law approved by President Tokayev in July 2022, bitcoin miners registered in the nation have already begun paying a higher premium for the electricity they use as of January 1.

Regarding the technical picture of bitcoin today, the level of $23,980 is the closest target for the bulls. Fixing on it will continue the bullish trend with the prospect of an update of $24,400. The level of $25,034 will be the farthest target, where major profit-taking and a rollback of bitcoin may take place. In the case of renewed pressure on the trading instrument, protecting the level of $23,220 will be of utmost importance because a breach by sellers would be detrimental to the asset. This will put pressure back on bitcoin and create a direct path to $22,520. A breakdown of this level will "drop" the world's first cryptocurrency in the area of $21,840.

The collapse of the nearest resistance level of $1,670 is what ether buyers are concentrating on. This is going to be sufficient to establish a foothold at the current highs and keep the bullish trend going. The market will undergo considerable adjustments as a result of this. The sum will be returned to the ether if it fixes above $1,670, with the possibility of growth to a maximum of $1,758. Longer-term targets will be around the level of $1,819. The level of $1,594, which was just formed, will be in use when pressure on the trading instrument resumes. If it is successful, the trading instrument will rise to a minimum of $1,504 and a maximum of $1,410. It will be extremely difficult for bitcoin owners to trade below $1,320.