• Cryptocurrencies are being monitored by global regulatory bodies due to their wide adoption after the pandemic.
• Stablecoins, especially USDT, have been used to send money without any KYC or sanctions.
• If the levels of market cap and USDT dominance continue to drop, then a massive crash in the crypto market may be experienced soon.
Overview
This article gives an overview of how global regulatory bodies are monitoring cryptos and stablecoins due to their wide adoption after the pandemic. It is suggested that if the levels of market cap and USDT dominance continue to drop, then a massive crash in the crypto market may be experienced soon.
Regulatory Monitoring
After the crisis experienced by traditional finance system due to the pandemic, cryptos were widely adopted and attracted many authorities. Since then, the space has been closely monitored in an attempt to bring it under control. While crypto companies were under the radar, it appears that stablecoins may now join them as well. As per some reports, USDT has been widely used by Russia to send money without any KYC & sanctions imposed.
OTC brokers
Nearly 3 OTC (over-the-counter) brokers have been identified in Moscow who sell thousands of dollars in stablecoins for cash and further exchange it to UK for pounds sterling. These transactions are carried out for cash but without any KYC verification. This could mean that if authorities hit hard on Tether, then whole crypto market may come under threat.
Market Cap & USDT Dominance
Presently, both Market Cap and USDT Dominance are trading along descending trend line which could lead cryptos coming under attack from all sides of technology despite their constructive intentions. If this happens then there is a fair chance that a significant crash may chase the crypto space soon enough.
Conclusion
In conclusion, it can be seen from this article that if global regulatory bodies take action against Tether then this would likely lead to a crash within the overall cryptocurrency market as both its Market Cap & USDT Dominance are declining rapidly at present time. Therefore traders should keep an eye on these two parameters so they can prepare themselves accordingly for any future events or outcomes that might arise from such actions taken by authorities against cryptocurrencies or stable coins like Tether (USDT).