Crypto Guides, Knowledge & Insights

BREAKING: EU Lawmakers Vote Against Bitcoin Ban

The Committee on Economic and Monetary Affairs (ECON), a committee of the European Parliament, has rejected a “de facto” Bitcoin ban.　　Members of the European Parliament (MEPs) voted 32-24 against passing the initiative, according to a tweet posted by Patrick Hansen, head of growth and strategy at DeFi start-up Unstoppable.　　A majority of MEPs representing the European Peoples Party (EPP), the European Conservatives and Reformists (ERC), Renew Europe (Renew) and Identity and Democracy (ID) have rejected the crippling provision. The Greens, Socialists and Democrats (Ss cryptocurrency industry last week. Prior to that, the initial anti-Bitcoin provision, which was introduced in late February, was scrapped due to strong criticism.　　The renewed possibility of a Bitcoin ban provoked backlash within the industry once again. David Marcus, former Meta blockchain lead, predicted that such a move would have a “catastrophic” impact.　　The MEPs approved an alternative amendment proposed by rapporteur Stefan Berger that does not restrict Bitcoin mining.　　Hansen has commented that the EUs crypto community has become a “strong force” in politics.　　Not out of the woods　　The MiCA framework will now become the subject of trilogue negotiations. Once a consensus is reached, the law will come into effect.　　As noted by Hansen, the anti-Bitcoin coalition of MEPs could still

2022-03-15Deep Dive

3 new cryptocurrency rules are coming for South Africa

Cryptocurrency is gaining momentum in South Africa and the government made it clear in its 2022 budget speech that it takes it very seriously, says consultancy Tax Consulting SA.　　In the 2022 budget review, the government put its cards on the table by proposing that regulators need to be put in place to protect crypto owners, the firm said.　　The Government has adopted the measures proposed by the Intergovernmental Fintech Working Group (“IFWG”) which provide:　　Including crypto asset service providers such as accountable institutions under the Financial Intelligence Center Act (2001). This change would address concerns about money laundering and terrorist financing from crypto assets and align the law with the standards set by the FATF for virtual assets and related service providers. The proposed amendments to the law were published for public consultation in June 2020 and are expected to be completed in 2022.　　Protecting consumers by allowing for the declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act (2002). According to this, any person who provides advisory or brokerage services in connection with crypto assets must be recognized as a financial service provider within the meaning of the law and must meet the requirements of

2022-03-14Deep Dive

Injective Protocol (INJ): A Cross-Chain Trading Powerhouse

Injective Protocol Exchange Structure　　Injective Protocol is a decentralized exchange (DEX) protocol that offers advanced features like cross-chain margin trading, derivatives, forex, synthetics, and futures trading. Injective was designed to be a completely decentralized, permissionless, and highly performant exchange protocol with zero gas fees. Injective achieves this with its Cosmos-backed layer-2 sidechain infrastructure that enables speed, accessibility, and decentralization with optimized connections to the main Ethereum chain.　　Injective Protocols mission is to remove barriers of access to DeFi markets, eliminate gas fees while maintaining high transaction speeds, and provide a truly decentralized and limitless trading experience for everyone. To achieve this robust functionality, Injective Protocol implements several important features:　　Fully decentralized network construction: The Injective Chain — based on the Cosmos Tendermint standard — is a fully decentralized sidechain relayer service that acts as a layer-2 derivatives platform, trade execution coordinator (TEC), and decentralized order book. Injective offers access to a cross-chain decentralized derivatives marketplace with zero restrictions.　　Layer-2 protocol speed: The Injective Chain facilitates the use of a two-way peg for Ethereum (ETH) and ERC-20 compatible tokens. It also boasts an Ethereum Virtual Machine (EVM)-compatible execution framework for numerous decentralized applications (dApps). Injective‘s peg-zone architecture is based on the Cosmos Gravity Bridge, which

2022-03-14Deep Dive

Investing in an intelligent crypto index fund — built for all market environments

Currently, global macroeconomic indicators point to both bearish crypto and equity markets. Inflation in the US is at 7.5%, the highest level since the 1980s — and contrary to the narrative of Bitcoin as an inflation hedge, the incoming attempt to control inflation from the Fed through tapering of asset purchases and interest rate hikes is weighing heavily on sentiment.　　In addition, Russia has launched a full invasion into Ukraine. Russian troops and tanks moved into Ukraine and airstrikes hit the country‘s capital and a dozen other cities early Thursday. The UK and USA have imposed sanctions on Russian banks and high net worth individuals and Germany has paused the approval process of the Nord Stream 2 gas pipeline project. NATO is expected to join the Ukrainian side, and the People’s Republic of China is expected to back Russia both diplomatically and financially. This pending clash of global superpowers in Eastern Europe, coupled with the unknown effect of the ongoing Covid-19 variants and tighter US monetary policy, make for a concerningly bearish economic landscape.　　However, the global economy continues to emerge from the economic slump caused by the Covid-19 pandemic. The majority of countries in Europe and North America have decided to

2022-03-14Deep Dive

Investors Predict Fed to Hike Rates This Week — Reactions From Crypto, Stocks, Gold Market Expected

A 25 Basis Point Increase Is Expected — Anxiety Revolves Around the Feds Next Moves　　Last week, the world watched as financial sanctions were used against Russia and the price of gold soared to an all-time high reaching $2,060 per ounce. Energy stocks, oil, and a myriad of commodities also jumped considerably in value during the last seven days. Cryptocurrency markets last week were lackluster, volume is down, and action remained flat after a brief price jump on March 9, 2022.　　Stocks on the other hand suffered a great deal and indexes like the NYSE, Dow Jones, S&P 500, and Nasdaq all closed the day in red on Friday afternoon (EST). Making matters worse, data stemming from the U.S. Labor Departments Consumer Price Index (CPI) report shows consumer prices tapped a 40-year high at 7.9% in February.　　A key event this week for all of the aforementioned markets will be on Wednesday. Thats when the U.S. Federal Reserve is expected to increase the benchmark bank rate for the first time since the Covid-19 pandemic. The increase is anticipated to be a mere quarter-point hike, but investors will also be wondering if the Fed reveals a series of rate hikes for the rest of

2022-03-14Deep Dive

Deutsche Bank to Exit Russia, Says There Will Be No New Business There

Amid Ongoing War in Ukraine, Deutsche Bank Pulls Out of Russia　　Deutsche Bank, Germany‘s largest banking institution, is scaling down operations in the Russian Federation. The bank announced its move in a statement posted on Twitter late on Friday, condemning Russia’s invasion of Ukraine.　　The financial conglomerate reaffirmed its support for the German government and its allies in “defending our democracy and freedom.” It also reminded it had already substantially reduced its exposure to the Russian market since 2014.　　DB noted that like others in the sector, abiding by legal and regulatory obligations, the bank is now winding down its remaining business in Russia while assisting its non-Russian clients in efforts to reduce their operations in the sanctioned country. It also insisted:　　There wont be any new business in Russia.　　Deutsche Banks exit follows similar moves by major American investment banks Goldman Sachs and JPMorgan Chase. Citigroup, the U.S. bank with the biggest Russian exposure, is limiting consumer business operations there as well.　　Meanwhile, according to Reuters, Austrias Raiffeisen Bank International is also considering a decision to leave the Russian Federation. The report quoted sources familiar with the matter without providing more details.　　Amid mounting sanctions on Russia, including cutting some of its banks from SWIFT, payment

2022-03-14Deep Dive

These Are the Latest Crypto Regulatory Moves by US and EU

Last Wednesday, U.S. President Joe Biden signed an executive order related to digital assets that authorizes several federal agencies to explore the national security and economic implications of digital assets, as well as to study the implications of creating a CBDC. Meanwhile, the European Union has scheduled a vote on the Marketplace for Crypto Assets (MiCA) framework for March 14.　　The order would set a 180-day deadline for the agencies, which includes the Treasury Department, Commerce Department, National Science Foundation, and national security agencies, to deliver reports on digital assets and “the future of money,” Reuters reported, citing people familiar with the matter.　　“We could see a significant shift in policy in 180 days. This is a likely step toward creation of a central bank digital currency,” the report said.　　More specifically, the order is expected to ask the Department of Justice to explore whether a new law is needed to address digital assets, while the Federal Trade Commission, the Consumer Financial Protection Commission, and other agencies would mainly focus on the impact on consumers.　　The order comes as concerns around the use of cryptoassets by “[Vladimir] Putin and his cronies” to evade international economic sanctions have heightened.　　“Criminals can use cryptocurrency to move money

2022-03-14Deep Dive

Singapore to Tax Income Generated From NFT Transactions

Singapores income tax treatment will be determined based on the nature and use of the NFT.　　Taxing NFTs　　According to the latest report by The Business Times, Singapore Finance Minister Lawrence Wong while addressing the parliament revealed that the prevailing income tax rules will apply to the income derived from non-fungible token (NFT) transactions or trading in it. Due to the absence of a capital tax regime in Singapore, individuals deriving capital gains from the NFT transactions will not be taxable, Wong clarified.　　The news comes amid the recent tax changes that many analysts believe will help in reducing inequality, strengthening the social compact, aiding longer-term spending.　　Singapores “Tech-neutral Stance” On NFTs　　Earlier in January this year, Singapore officials had cautioned the citizens in terms of decisions related to digital investment vehicles, especially in the nascent sectors of NFTs and metaverse. Despite being often touted as the next crypto hub in Asia, Singapore had urged global regulators to exercise greater control over digital investments. It had revealed closely exploring the risks associated with technologies such as blockchain, decentralized finance, NFTs, and the metaverse.　　Last month, Singapores central bank said it will not regulate the NFT market. Responding to a parliamentary question on regulating NFT activities, Tharman

2022-03-14Deep Dive

The Future of Sports Lies at Cross-Section of Crypto and NFTs, says PwC Report

A new report by PwC has placed NFTs and other digital assets among the top ten major trends within the sports industry.　　The report, which details the Sports Outlook for North America, reveals that the future of the sporting industry lies at an intersection with non-fungible tokens.　　Citing various factors ranging from altering sports technology infrastructure to driving fan engagement, the report pointed out three main use cases for NFTs in the sporting industry.　　Collectibles　　The first of these uses is collectible NFTs, which refers to platforms that sell collectible, authenticated, and limited-edition digital content, which we have already started to see adopted in mainstream sports.　　Specifically, the report mentions the digitization, minting, and trading of player trading cards, match tickets, and other objects or materials that can be placed on the blockchain. These collectibles, inadvertently, could be displayed or even shared across the metaverse.　　We have witnessed the success and longevity of this, as Dapper Labs has continued to popularize this application with NBA Top Shot. This NFT tokenizes nostalgia and some of the NBAs greatest memories and highlights over the course of history. In 2021, Dapper Labs accounted for nearly $827 million worth of transactions, showing that other games in addition to Axie Infinity

2022-03-14Deep Dive

Analyzing the Bitcoin mining industry panorama following BTC’s price drop

Crypto markets have experienced highly volatile months, even by crypto‘s standards. The year began with rising inflation shortly followed by the Russian and Ukraine war, causing Bitcoin’s price to retrace significantly from the $50k level at which it stood by the end of 2021. This recent series of events have impacted the mining industry in a negative way.　　The industry has grown tremendously boosting competition and elevating hash rate to sustained levels not seen before. These low prices has affected the mining industry profitability and as a consequence miner reserves have decreased, likely to cover companies day to day costs. Furthermore, we will explore Chinas crackdown on mining long term effects by analyzing the current Hash Rate Distribution.　　Quick refresher — the hash rate is the aggregate power contributed by miners to secure a proof of work blockchain. This computing power is used to solve cryptographic algorithms (SHA-256 in Bitcoin‘s case) to process transactions and reach consensus in proof of work blockchains. This indicator serves to measure how strong a network’s security is, since the greater the hash rate the more difficult it becomes for an attacker to try to overtake 51% of the mining control.　　As can be seen above, Bitcoins hash

2022-03-13Deep Dive

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