- Chiliz made regulatory headway in Spain, paving the way for the exploration of more utility.
- CHZ struggled to sum up enough volumes for an exit from its current range.
The Chiliz [CHZ] network has achieved an important milestone as part of its global expansion journey. The network announced on 30 March that it was now licensed to operate as a virtual asset services provider in Spain.
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According to the official announcement, Chiliz was awarded the license by the Bank of Spain. The license will allow the sports-oriented decentralized network to operate a crypto asset exchange in Spain within the existing regulatory framework. In other words, the license will allow socios.com to explore more opportunities within the industry.
Breaking: @socios secures Virtual Asset Service Provider registration from Bank of Spain. ???This consolidates our journey to embrace as many regulatory frameworks as possible to offer our products. Powered by @chiliz $CHZ.https://t.co/Dd1sg7kEc1
— Alexandre Dreyfus ?? (@alex_dreyfus) March 30, 2023
Chiliz views Spain as a strategic market because of its already existing strong ties with top football clubs in Spain. Also, Socios.com has an office in the country since 2021.
The network’s CEO, Alexandre Dreyfus, described the approval as a key part of providing consumer protection in the region.
Will the announcement influence CHZ demand characteristics?
The new regulatory framework may not necessarily have an immediate impact on CHZ’s price or demand. This is because it will take a while for socios.com to create more products, including the exchange, which will probably fuel CHZ demand.
Chiliz’s native cryptocurrency CHZ achieved an overall bullish performance in the last five days. It exchanged hands at $0.12 at press time, which means it is still within the same range where it has been trading since mid-March.
Source: TradingView
CHZ’s RSI hovered within the neutral level, indicating a lack of significant shift, especially in the last 24 hours after the announcement.
Furthermore, assessing the cryptocurrency’s exchange flows revealed a large spike in exchange inflows on 28 March. However, exchange flows remained low after the announcement. This confirms that the market reaction to the regulatory green light in Spain was largely subdued.
Source: Santiment
Realistic or not, here’s Chiliz market cap in BTC’s terms
A weekly overview of address activity reveals that daily active addresses peaked on 28 March and have since tapered out. Meanwhile, CHZ’s MVRV ratio achieved a healthy weekly pivot and peaked at a new seven-day high in the last 24 hours at the time of writing.
Source: Santiment
The high MVRV ratio confirms that most CHZ holders are still holding and not selling. Chiliz transaction volume also remained relatively low at press time, indicating a lack of excitement.
