New Law to pave way for crypto; GBTC swept into FTX storm

In spite of the current crypto market downturn, El Salvador is increasing its wager on the asset. A Digital Asset Issuance Law is now being drafted by the first government to recognise Bitcoin (BTC) as legal money, which will make it easier to transact with any crypto asset.

The proposed law is targeted to control the transfer operations of any digital asset to promote the efficient development of the digital asset market and protect the rights of users. This is according to a document posted on the website of El Salvador's National Assembly.

The new law is innovative because it shows a distinct monitoring framework for crypto assets, wrapping them from the rest of the financial system. No vague factors are left by the law regarding the requirement that a distributed ledger or equivalent technology be used for a digital asset to be considered in this category. 

See the odds on your chances of winning in Hilo

As of now, the blockchain is the most popular distributed ledger technology to date. With this new law to be implemented for all cryptocurrency, casino sites like Gamdom and Bitcoin casino games are wondering how it will benefit the online casino industry. 

Meanwhile, transactions involving Central Bank Digital Currency (CBDC), assets that are not suited for trading and sovereign assets controlled by foreign laws are not allowed within the framework of the law.

Mario Gomez, a Salvadoran hacktivist, claimed that the law was enacted to help financially struggling global companies. It also helps El Salvador as a safe haven for the crypto industry. 

‘The reason why these firms focus on little countries is that it is simpler to sit directly with a president as a major company and adopt measures that benefit them’, Gomez stated.

In June 2021, President Bukele submitted the now-famous Bitcoin Law to Congress. A majority of the National Assembly's pro-government parties voted in favour of it. 

GBTC swept into FTX storm

Yet another sign of declining interest in digital assets is the involvement of the largest crypto fund in the upheaval engulfing the problematic sector. The share price of the $10.5 billion Grayscale Bitcoin Trust (GBTC) has dropped to a 39% discount on the value of its underlying assets.

The crypto market was prepared to receive the influx of funds during the private placements in 2013. The net assets reached their highest point and GBTC reached its highest trading price in October. Canada's emergency trade exchanges reportedly weakened the market.

Investors have lost 83% since the price of BTC peaked in November 2021, greatly more than the drop in value of BTC itself. In November 2022, Grayscale's worst fears were realised when crypto broker Genesis Trading halted redemptions and loans. This happened due to financial contagion from the failure of Three Arrows Capital, a Singapore crypto hedge fund that filed for bankruptcy in July 2022. 

With the cryptocurrency market undergoing major changes, enthusiasts of Bitcoin casino games and crypto sites like Gamdom remained unfazed. In fact, the online crypto betting industry remains to be one of the strongest crypto sectors today. 

For more Bitcoin casino games, visit Gamdom.com

Words: Rica Miranda