Read Time:10 Minute
Rise and Fall of Cryptocurrencies in the Year 2022
- Cryptocurrencies have seen towering highs and steep lows since their inception in 2009.
- Bitcoin, the most popular digital currency, has reached a price as high as $46,715.
- Investors have been siphoned off $600 million this year.
Countries have taken a cautious path when it comes to cryptocurrencies.
- India is taxing profits made on the cryptocurrency trade at 30%.
- The Reserve Bank of India is expected to launch the central bank digital currency (CBDC), dubbed as ‘Digital Rupee’, this financial year.
- When Ukraine passed the bill to legalise cryptocurrencies in February this year, it was a different time.
- Australia has minted stablecoin on March 24, Australia’s first bank to do so.
- Thailand has banned the use of any digital currency as a payment option for commodities and services.
- The concern around crypto stems from the anonymity surrounding it, which has also made it the target of numerous frauds and heists.
Major Indian Crypto Exchanges See Trading Volumes Plunge Since New Tax Law
- India’s new tax law, which came into effect on April 1, has caused a sharp drop in crypto trading volumes on major exchanges in the country.
- The tax law imposes a 30% tax on profits from crypto transactions, and also includes a 1% tax on crypto transactions from July 1.
- The sharp drop in trading volumes suggests that the new tax law is having a negative impact on the crypto market in India.
- Sathvik Vishwanath, the co-founder & CEO of Unocoin, another prominent Indian exchange, said the new tax law is affecting the market.
Giottus, a crypto investment platform, on Monday said it has on boarded over one million users ahead of its fourth anniversary.
- Giottus, a crypto investment platform, has onboarded over one million users ahead of its fourth anniversary.
- The platform is the only bootstrapped crypto exchange in India to have achieved this feat.
- Founded in November 2017, Chennai–headquartered Giottus opened up for trade in April 2018.
- On Giottus, users can buy, sell, and grow their crypto portfolio in eight Indian languages including Hindi, Tamil, and Telugu.
- This regional focus has helped Giottus gain a strong foothold in the southern markets with more than 70% of its customer base coming from this region.
- More than 60% of Giottus’ customer base comes from tier–II and tier–III centres.
- Giottus plans to offer fixed deposits on crypto assets as well as staking features soon.
- The company is among the early members of the Blockchain & Crypto Assets Council (BACC) in India and follows industry’s best self–regulatory measures such as full KYC and transaction monitoring processes.
- Giottus has doubled down on making its platform highly secure with an insured custodial service provided by Bitgo, a global partner.
Why philanthropy through cryptocurrency is becoming popular?
- Cryptocurrency donations are becoming more popular.
- Cryptocurrency donations offer some advantages over traditional donations.
- Cryptocurrency donations can be made directly to causes, rather than to organizations.
- Cryptocurrency donations have low transaction costs.
- Cryptocurrency donations can be made without having to fulfill KYC and other identification requirements.
- Many international charity organizations are now accepting cryptocurrency donations.
- The average age of cryptocurrency users is 38 in the USA.
- The majority of cryptocurrency donors are under the age of 40.
Bolt Financial to Acquire Wyre Payments for $1.5 Billion
- Online checkout company Bolt Financial Inc is buying cryptocurrency infrastructure provider Wyre Payments Inc.
- The company did not disclose the terms of the deal, but a Wall Street Journal report earlier in the day said it was valued at $1.5 billion.
- Bolt was last valued at $11 billion after a funding round in January.
- The company, which counts apparel retailers Forever 21, Juicy Couture and Lucky Brand among its customers, expects to close the deal by the end of the year.
- Founded in 2013, Wyre provides payments infrastructure for cryptocurrencies.
- Since last year, the crypto market has seen a surge of investor interest with large venture investors, celebrities and blue–chip companies doubling down on crypto investments.
Trading volumes on Indian cryptocurrency exchanges plunge after tax implementation and MobiKwik withdrawal
- Volumes have fallen across crypto exchanges by over 50 percent on average since the implementation of taxes.
- MobiKwik‘s withdrawal of its wallet from exchanges has forced customers to use payment methods like bank transfers.
- MobiKwik‘s withdrawal of its wallet from exchanges has raised questions on whether the move was to ensure it does not err in the eyes of regulators with the government‘s stance still unclear on crypto regulation.
- Transaction volumes have plunged 55 percent while domain traffic has dropped 40 percent on India‘s top cryptocurrency exchanges in the first two days after the crypto tax came into effect.
- The Reserve Bank of India‘s (RBI) stance has consistently been against cryptocurrencies.
- Nasdaq–listed crypto exchange Coinbase forayed into India to start retail trading, but just three days after announcing its plans, it halted the option on purchasing cryptocurrencies through the Unified Payments Interface.
- India has been one of the largest markets for crypto trading with around 15 million wallets in the country. But with the tax implementation and unclear regulations, only well–funded exchanges will survive over the next few months, say experts.
New EU Sanctions Target Russian Crypto Users in Response to Military Assault on Ukraine
- The European Union has issued a new set of sanctions against Russia in response to the country‘s military assault on Ukraine.
- These latest sanctions prohibit the provision of high–value crypto–asset services to the Russian Federation.
- The sanctions are aimed to increase economic pressure on the Kremlin and make it more difficult for Russia to fund its invasion of Ukraine.
- The restrictions include asset freezing and a complete prohibition on transactions for four Russian banks.
- President of the European Central Bank Christine Lagarde recently warned that cryptocurrency was being used to avoid sanctions.
- Officials in the United States have also issued warnings to crypto exchanges that do not comply with Russian sanctions.
Crypto Industry Gets Favorable Regulations Passed in State Capitols
- The crypto industry is aggressively pushing for favorable regulations at the state level in the absence of federal regulations.
- Industry lobbyists and executives are working with state lawmakers to draft bills that benefit the industry, and then pushing for these bills to be enacted.
- The aim is to clear the way for the continued growth of cryptocurrency companies, which are trying to revolutionize banking, e–commerce and even art and music.
- Some consumer advocates worry that this aim–to–please effort could leave investors and businesses more vulnerable to the scams and risky practices that have plagued crypto’s early growth.
- In Florida, the new money–transmission legislation emerged from a monthslong collaboration between a state representative and a crypto industry executive.
- Similar teamwork has been on display in Wyoming, North Carolina, Illinois, Mississippi, Kentucky and other states.
- At least 153 pieces of cryptocurrency–related legislation were pending this year in 40 states and Puerto Rico, according to an analysis by the National Conference of State Legislatures.
- The moves have alarmed current and former financial regulators like Lee Reiners, who raised objections last year before North Carolina passed a bill exempting certain experimental cryptocurrency start–ups from the state’s consumer protection laws.
- State legislators said they had little choice but to rely on industry experts, given the complexity of the crypto marketplace.
- In New York, at least a dozen industry players have hired lobbyists over the last year, spending more than $140,000 a month, state records show.
Read the whole story from Forbes here.
Binance Receives Regulatory Approval to Operate in Abu Dhabi
- Binance has received an in–principle approval to operate as a digital asset broker–dealer in Abu Dhabi.
- The approval is the third on Binance’s list of regulatory approvals in the Middle East, after Bahrain and Dubai.
- Binance received the in–principle approval to operate in the UAE capital from the Abu Dhabi Global Market (ADGM), the Financial Services Regulator Authority (FSRA) of Abu Dhabi.
- Once the application process is completed for the full license, Binance, via its subsidiary Binance (AD) Limited, will be able to provide virtual asset services to the users across the MENA (the Middle East North Africa) region.
- In March, Binance received a virtual asset license to conduct its operations in Dubai.
- The Abu Dhabi Global Market has played a significant role as an international financial free zone in the UAE in lending regulatory and supervisory oversight to the financial services being provided within its jurisdiction.
- Dhaher bin Dhaher, the chief executive of ADGM’s Registration Authority, says, “ADGM is the largest regulated jurisdiction of virtual assets in the MENA region, and Binance’s participation will add to its vibrant and trusted ecosystem of virtual asset trading venues, global exchanges, and service providers.”
- The ADGM intends to provide more such regulatory approvals to local and global crypto companies to further position Abu Dhabi as the ‘fastest–growing virtual assets hub and digital economy’.
- On the other side of the equation, the MENA region is grabbing the attention of premier global exchanges as an emerging crypto hub.
- Richard Teng head of the MENA region at Binance, who was previously the chief executive of the ADGM, was quoted saying, “Binance has been actively engaging global regulators, such as ADGM, as part of its ongoing commitment to uphold global standards and collectively foster the developments and sustainable growth of the crypto ecosystem.”
Read more on Forbes here.
Shiba Inu might continue to plummet and 2 other projects that will do well this year
- The crypto experts say that the Shiba Inu might continue to plummet.
- The reasons for this are the decreasing hype and the lack of utility.
- Bitgert and Centcex are two projects that the experts say will do well this year.
- Both of these projects have fast–paced teams and are building a large number of products.
Read the full story here.
Moms Are Getting Into Crypto and NFTs
- Sarah Monson learned that Facebook was changing its name to Meta and shifting its focus to something called the metaverse, an immersive virtual world that did not yet exist, but the company said would one day take over the internet.
- Monson found the news disturbing and decided the best thing to do was learn about the technologies that many proponents of the metaverse said would underpin it, including cryptocurrencies and NFTs, or nonfungible tokens.
- Monson is now getting ready to launch her first NFT art collection, which she dubbed The Latchkey Kids, a reference to members of her generation born in the 1970s and ’80s.
- While younger, male Americans are more likely to say they have heard a lot about cryptocurrencies, a small but growing number of mothers, like Monson, are getting into the industry.
- For them, the stakes of investing in crypto can be higher. Most of the six mothers interviewed for this article said that they hoped crypto and NFTs would meaningfully change the financial security of their families for generations to come.
- The lack of women is so pronounced that it is often the subject of jokes. During the conference Monson attended, comedian Kristin Key mused on stage that perhaps NFT stood for “no females today.”
- But now, amid another bull market, a new wave of female–themed organizations have emerged that say they want to encourage more women to participate in crypto.
- Deana Burke, a mother of two kids under age 5 and the co–founder of Boys Club, a crypto collective designed for women and nonbinary people, said there is more excitement about entering the industry among women than when she first joined a few years ago.
- Brenda Gentry, a full–time crypto trader based in San Antonio, has branded herself online as “MsCryptoMom.” Her tagline: “Mother knows best.”
Read the full story here.