Crypto Guides, Knowledge & Insights

Three Predictions for Crypto Regulations in 2022

2021 may not have been the year that your grandparents started trading cryptocurrencies, but it was certainly a watershed year for the technology. Indeed, the volume of crypto transactions grew 567% year on year to reach a value of USD 15.8tn in 2021, demonstrating that the trading of digital assets is becoming increasingly mainstream. Even if the market is seeing some correction in early 2022, 2021 was such a leap year that no one can deny cryptoassets are here to stay.　　While the total volume of illicit activity in cryptoassets has grown in absolute terms; illicit activity today still accounts for less than 1% of all transactions, according to cryptoasset compliance provider Elliptic. However, in the emerging decentralized finance (DeFi) space, which has seen the greatest impact by far, losses due to theft and fraud are accelerating to over USD 10.5bn in 2021, up from USD 1.5bn in 2020. These rising figures were a driving factor in the many examples of regulatory activity that occurred across the globe last year – with significant developments taking place in Dubai, the US, the EU, and South Korea to name just a few. 　　These developments are so important because they bring trust to cryptoassets,

2022-02-24Deep Dive

Bitcoin bounces back, markets worry less about Russia-Ukraine crisis

Bitcoin and the rest of the crypto markets are continuing to struggle, with the bitcoin price trading down from the weekly high of $44,274 on Wednesday last week, down below the psychological $40,000 level at $36,629, as per data from Goingecko. At the moment of writing, BTC price is hanging just below $39,000, up 3.3% on the daily.　　The general sentiment in both Bitcoin, and traditional markets, seems to be a reflection of risk and uncertainty associated with the U.S. Federal Reserve rate hikes expected to be implemented in March, and continue throughout the rest of the year. There are also continuing fears of conflict in Ukraine, as well as uncertainty around the development of unrest in Canada and elsewhere.　　Additionally, Germany has halted the Nord Stream 2 pipeline, an $11 billion project meant to ferry natural gas directly from Russia to Germany.Probability of sustained bear market expected to increase　　Analysts at Glassnode are raising red flags if the traditional and crypto markets continue to go deeper into a negative sentiment.　　“As the prevailing downtrend deepens, the probability of a more sustained bear market can also be expected to increase, as recency bias and the magnitude of investor losses weighs on sentiment. The longer

2022-02-24Deep Dive

El Salvador’s tourism sector is booming after bitcoin adoption

El Salvador is experiencing a surge in tourism after it adopted the bitcoin law in the fall of 2021 and made the cryptocurrency legal tender.　　The country‘s tourism minister Morena Valdez said that actual tourist numbers surpassed earlier projections by 30%. The country had expected 1.1 million visitors as part of the sector’s recovery but received a total of 1.4 million.　　“We had projected $800,000 in foreign exchange, but we obtained more than $1,400 million of income in foreign currency.”　　Valdez told local news agency El Salvador News English.　　The demographics of tourists are also shifting with over 60% of them coming from the US now, according to the Minister. In the past, the majority of tourists have been from neighboring Latin American countries.Record GDP in 2021　　El Salvador President Nayib Bukele tweeted on February 20th that the countrys GDP growth had hit 10.8% in 2021. He added that the country had never hit double-digit growth in GDP before 2021.　　Bukele continued that exports had grown 13% in January compared to the previous year and alluded to another year of double-digit growth in the countrys GDP.　　The Salvadoran President has touted Bitcoin as a way to bank the countrys population, 70% of which are unbanked. He has

2022-02-24Deep Dive

Singapore Crypto Firm Amber Group Hits $3 Billion Valuation In Funding Round Led By Temasek

Amber Group has raised $200 million in a fundraising round led by Singapores state-owned investment firm Temasek, boosting the valuation of the cryptocurrency financial services firm to $3 billion. It was valued at $1 billion about seven months ago. 　　Other investors include existing shareholders Sequoia China, Tiger Global Management, the venture capital arm of crypto exchange Coinbase, as well as Pantera Capital, a crypto hedge fund founded by a former Tiger Management executive, according to a company statement issued on Tuesday. 　　Amber Group achieved its unicorn status during its last fundraising round in June. The company said it will use the new capital to hire more staff to support its institutional business in Europe and the Americas. The capital will also be used for expanding coverage of its crypto investment platform globally.　　“We want to help create a digital future where digital assets empower people with the opportunity and agency to shape a better world for all,” cofounder and CEO Michael Wu, a Forbes 30 Under 30 Asia alum from 2019, said in the statement. “We are proud to have the support of our investors who not only share this vision but also put their capital and trust in us to

2022-02-24Deep Dive

Monetary Authority of Singapore won’t regulate the NFT market

One of the world‘s biggest financial hubs, Singapore, will refrain from issuing any regulations for the burgeoning non-fungible token (NFT) market. Singapore’s central bank says that the NFT market is still nascent, and rather than regulating it in its current form, it will take a tech-neutral stance. NFT market saw a boom in 2021, with the sector seeing $25 billion in sales, up 26,000% from just $95 million in sales the year prior.　　NFT market attracts regulators in different countries.　　The NFT market has brought in the biggest brands, from companies like Nike and Coca-Cola to celebrities like Snoop Dogg and Lionel Messi. The rise has also attracted regulators who want to police the rapidly growing industry. Singapore, however, won‘t be among them. Tharman Shanmugaratnam, the Senior Minister in charge of the Monetary Authority of Singapore (MAS), which is the country’s central bank, made it clear that NFTs will remain unregulated. The MAS “does not and cannot possibly regulate all things or products that people choose to invest their money in,” he stated, as reported by local outlet Fintech News Singapore.　　Regulating the NFT industry would be an extensive task.　　Tharman pointed out that the central bank, and the government, would not interfere with

2022-02-24Deep Dive

Investments And Transactions Using Cryptocurrencies Are Not Criminal – U.S. Secret Service

The U.S. Secret service has launched a cryptocurrency awareness hub that seeks to educate the public about digital assets and cryptocurrencies, in a bid to avert the risks associated with the nascent sector.　　According to the announcement, the website will be dedicated to updating the public on the agency‘s work in combatting crimes in the crypto sector. Further, it will be used to spread public awareness on issues such as how to detect and abstain from predatory crypto schemes; how to safeguard one’s crypto and digital assets as well as general information about crypto.　　“Blockchain technology has brought massive development to many sectors, especially within finance. The Secret Service‘s mission of investigating financial crimes has advanced in lock-step with this progress,” Jeremy Sheridan, the Assistant Director in the U.S. Secret Service Office of Investigations said. “Our obligation to enforce crimes against the nation’s financial systems includes both informing the public on how digital assets work and partnering with them to identify, arrest, and prosecute those engaging in crimes involving digital assets. The Secret Service will continue to expand its capabilities, collaboration, and effectiveness related to all financial crimes investigations.”　　The Agency, whose activities of protecting the national financial infrastructure date back to 1865

2022-02-24Deep Dive

Brazil Senate Moves to Accepting Crypto With Approval of Bill

IN BRIEF　　The bill would provide the framework for how crypto can be accepted and used as a day-to-day payment option.　　“Once this regulation is approved, the trend is that it will be increasingly adopted in the supermarket, in commerce, in a car dealership.”　　If approved, President Jair Bolsonaro will then sign it into law.　　Brazils Senate has taken the first steps to adopting cryptocurrency with the unanimous approval of a bill to regulate digital assets. If approved, Brazil would become the largest Latin American nation to regulate cryptocurrencies.　　The bill would provide the framework for how crypto can be accepted and used as a day-to-day payment option.　　The Senate economic affairs committee approved Senator Flavio Arnss proposal, which seeks to give joint overview to the Brazilian Central Bank and the national tax agency.　　Two competing bills presented by senators Styvenson Valentim and Soraya Thronicke were shelved.　　The bill defines virtual assets and classifies their service providers, giving the federal government authority to determine which body will be responsible for regulating business.　　Senator Iraja Abreu, who wrote the draft, told Bloomberg that Brazils Banco Central had a hand in constructing the bill.　　“With regulation, cryptocurrency will become even more popular,” Abreu said. “Once this regulation is approved, the trend is

2022-02-24Deep Dive

India’s Advertising Watchdog Outlines New Promotional Guidelines For Crypto

The Advertising Standards Council of India (ASCI) has published a new set of guidelines that seek to check advertisement and promotional activities associated with cryptocurrencies and NFTs.　　According to The Economic Times, introducing the 12 guidelines on Wednesday, the self-governing body stated that all ads relating to the crypto-verse will be required to display a Voluntary Disclosure Agreement (VDA) which reads; “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”　　ASCI further stated the VDA applies to all forms of advertisement including audio, visual, and print format and that advertisers are required to display it in a manner that is “prominent and unmissable to an average consumer.”　　Apart from prohibiting advertisers from making statements that purport to guarantee huge or fast profits, the guidelines also forbid statements that use words like securities, currency, custodian, or depositories. Advertisers are also required to provide accurate information regarding their products as well as avenues of contacting them. ASCI however noted that these rules will take effect on April 1, 2022.　　The new guidelines come in the wake of the widespread circulation of crypto-related promotional materials that seek to lure investors, most of whom

2022-02-24Deep Dive

Forget the Big Mac, grab a Doge Burger and pay with crypto instead

A Dogecoin-inspired virtual restaurant, named Doge Burger, launched in Dubai last week. Locals can order real food from the “cloud kitchen” for doorstep delivery and pay using crypto.　　A delectable choice of all-American classics are on the menu, including Doge Burger Chicken and Doge Burger Beef, and for the connoisseurs, the Mushroom and Swiss Burger is sure to hit the spot.　　Whats even better, despite the naming of the restaurant, none of the meat patties contain any real doge. Instead, the founders named it so as a homage to Dogecoin, which netted them huge returns.Does anyone fancy a Doge Burger？　　Doge Burger pitches itself as the first “crypto-based hospitality-concept,” enabling payment with digital currencies.　　“Doge Burger is the chains first crypto-based hospitality concept that will enable consumers across the UAE to order and pay for their meal with digital currency.”　　Time Out Dubai points out that some UAE-based restaurants were offering payment with crypto as far back as 2014. But whether those restaurants were “crypto-based hospitality” experiences is doubtful, though.　　Nonetheless, paying for your Doge Burger is handled by Crypto.com, which offers payment via its own app, MetaMask, WalletConnect, and “Other Cryptocurrency Wallets.”　　Last month, Elon Musk said he would eat a Happy Meal on TV if

2022-02-23Deep Dive

The Crypto Crime Series: Illicit activity represents only 0.15% of the market

According to the latest report from Chainalysis, total transaction volume grew to $15.8 trillion last year, up 567% from 2020s total.　　The increase in illicit transaction volume, however, was just 79%—nearly an order of magnitude lower than the overall adoption—showing that crypto crime is becoming less and less prevalent.The growth of legitimate crypto usage is outpacing the growth of criminal usage　　Cryptocurrency-based crime hit a new all-time high in 2021, with “illicit” addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020.　　This is the first sentence of Chainalysis‘ 2022 Crypto Crime Report—and it couldn’t be more misleading.　　In its annual report analyzing illicit activities, the company found that the numbers dont tell the full story and that crypto crime has reached its all-time low in terms of its overall market share.　　While there are multiple factors that contributed to this, the drop in the share of criminal activity is mostly due to the fact that legitimate cryptocurrency usage has seen unparalleled growth. Across all cryptocurrencies tracked by Chainalysis, the total crypto transaction volume grew to $15.8 trillion last year, up 567% from 2020.　　On the other hand, illicit transaction volume only saw a 79% increase last year—showing that crime

2022-02-23Deep Dive

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