Weekly Recap

August 1st - August 7th, 2020

Welcome to our weekly recap for August.

Overview 

Crypto News

• • Crypto Derivatives Set New Records, ETH Futures Set All-Time Highs, CME Open Interest Spikes

• Digital currency derivatives have been on fire during the last two weeks as Ethereum futures volumes touched an all-time high on Sunday. The popular derivatives trading platform Deribit saw 1.9 million ETH contracts traded and CME Group is now the third-largest exchange in terms of bitcoin futures open interest.

  • US Congressmen Want IRS to Balance Taxation and Innovation in the Cryptocurrency Space

• The four congressmen are Bill Foster (D) of Illinois, Darren Soto (D) of Florida, Tom Emmer (R) of Minnesota, and David Schweikert (R) of Arizona.

  In their letter addressed to IRS Commissioner Charles Rettig, the quartet expressed concern that the “taxation of staking rewards as income may overstate taxpayers’ actual gains from participating in this new technology.”

  • Ethereum Classic Suffers Second 51% Attack in a Week

• Ethereum Classic has suffered its second 51% attack in a week after more than 4,000 blocks were reorganized Thursday morning.

  Mining pool Ethermine’s parent entity Bitfly and crypto exchange Binance reported the reorganization, announcing all Ethereum Classic payouts, withdrawals and deposits had been suspended due to the attack.

  • Goldman Sachs Eyes Own Token as Bank Appoints New Head of Digital Assets
• Matthew McDermott, Goldman’s new digital asset global head, confirmed the U.S. investment bank was exploring whether to launch its own digital asset, CNBC reported Thursday.
  “We are exploring the commercial viability of creating our own fiat digital token, but it’s early days as we continue to work through the potential use cases,” he said.

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Weekly Recap

July 24th - July 31st, 2020

Welcome to our weekly recap for July.

Overview 

Crypto News

• • Hackers Transfer $28 Million Worth of Bitcoin from 2016 Bitfinex Breach

• The Bank of England’s upcoming settlement service is being designed to support a possible central bank digital currency (CBDC). The new settlements system is being designed that the bank could incorporate a facility for digital currency transactions, should it decide to support a CBDC.

  • Americans to Buy Bitcoin With Their Second Stimulus Checks After Initial Investment Turned in 50% Profit

• Instead of buying groceries or paying rent, many Americans opted to invest in the top cryptocurrency when they received their first stimulus checks in April. And the gamble paid off. Those that converted the free money to bitcoin have raked in up to 54% in profit in three months.

  Now, history may be about to repeat itself.

  • US suffers worst economic decline on record in second quarter as GDP contracts by 32.9%

• The United States has suffered its worst economic decline on record with the nation’s gross domestic product (GDP) contracting by 32.9 percent in the second quarter. Most analysts expect the economy to manage a sharp bounce-back in the current July-September quarter. Yet with confirmed coronavirus cases elevated in a majority of states, the economy could worsen in the months ahead.

  • Bank of England Building Payments Network to Support a Potential Digital Pound
• Around 2,500 stolen bitcoins ($28 million) from the 2016 Bitfinex breach were transferred from the hacker’s wallet on Monday.The last time the Bitfinex hackers moved funds from the hack four years ago, they moved around $5 million worth of coins on June 24. This time around, the top crypto asset by market capitalization touched new price highs for 2020 on July 27.

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June Weekly Recap 5

June 23th - June 30nd, 2020

Welcome to our 5th weekly recap for June.

Overview 

Crypto News

• • Australians Can Now Pay for Bitcoin at the Post Office

• Australians can now pay for Bitcoin (BTC) at national post offices, thanks to a new collaboration with local cryptocurrency exchange, Bitcoin.com.au. Customers will now be able to pay for BTC at more than 3,500 Australian Post offices.

  • EU Creating a Regulatory Regime for Cryptocurrencies

• The European Union’s Executive Vice President of the European Commission for An Economy that Works for People – said Europe had to seize the opportunity to become one of the main rule-makers for digital finance.

  The new regulatory regime for cryptocurrency will not only cover unregulated digital assets, but it will also consolidate and homogenize existing standards across the continent, Dombrovskis said.

  • Bitcoins Could Be Stolen Using Lightning Network Attacks

• In a research paper, titled “Flood & Loot: A Systemic Attack On The Lightning Network,” researchers Jona Harris and Aviv Zohar, both of Israel’s Hebrew University, found that attackers can exploit a bottleneck in the system to drain wallets of funds.

  • Bitcoin Scam Exposes Thousands to Data Breach
• Fraudulent websites successfully have stolen the personal records of a number of individuals from the United Kingdom, Australia, South Africa, the United States, Singapore, Malaysia, Spain and more. The attack was executed as a targeted multistage Bitcoin (BTC) scam propagated by a number of fraudulent websites impersonating recognized media outlets and personalities.According to the Singapore-based intelligence company Group-IB, the attack exposed personal data for thousands of people.

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June Weekly Recap 4

June 16th - June 22nd, 2020

Welcome to our 4th weekly recap for June.

Overview 

Crypto News

• • Number of Bitcoin ‘Whales’ Has Risen by 2% Since Halving

• As of Tuesday, the number of bitcoin whales, as represented by the tally of unique entities holding at least 1,000 coins, was 1,840. That’s nearly 2% up from the level of 1,811 observed on May 1, according to data from blockchain analytics firm Glassnode. The metric clocked a recent high of 1,844 on Monday, a level last seen in November 2017.

  • Infosec Exec Urges US Lawmakers to Tighten Crypto Regs Over Pandemic-Driven Scams

• Tom Kellermann, head of cybersecurity strategy at publicly traded software company VMWare, told lawmakers that virtual currencies need stronger oversight. There has been an increase in the number of security breaches and thefts at digital currency exchanges, which cybercriminals used to launder stolen money, he said.

  • Bitcoin’s Rise Driven by Institutional Trading, Says Research and Investor Sentiment

• This week the research firm the Tie tweeted about bitcoin’s (BTC) social activity to the company’s 6,300 Twitter followers. The company thinks that institutional interest and trading is a driving force right now. “Bitcoin is trading at an all-time high (ATH) relative to its social activity,” the Tie tweeted on Thursday.

  • Bitcoin Rises in New Crypto Rankings by Chinese Government-Backed Institute
• The Center for Information and Industry Development (CCID), under China’s Ministry of Industry and Information Technology, published its 18th update of crypto project rankings on Thursday.
• In the 18th ranking, BTC improved slightly from the April revision overall, rising from the 14th position to the 12th position. BCH fell slightly from the 31st position to the 34th spot. Meanwhile, EOS, Tron, and ETH continue to top the overall ranking.

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June Weekly Recap 3

June 9th - June 16th, 2020

Welcome to our 3rd weekly recap for June.

Overview 

Crypto News

• • Coca-Cola Distributor Offers Bitcoin Payment Options for Aussie Vending Machines

• Coca-Cola Amatil, the Asia-Pacific bottling giant, has partnered with digital assets platform Centrapay to integrate bitcoin as a payment option from its vending machines across Australia and New Zealand. This means over 2,000 smart vending machines now accept cryptocurrency.

  • Indian Government Reconsiders Banning Cryptocurrency

• The Indian government is reportedly reconsidering a plan to ban cryptocurrency and the finance ministry has initiated related inter-ministerial consultations.

  • US Financial Services Committee Hearing Discussed the Creation of a ‘Digital Dollar’

• At the virtual hearing with members of the DDF, Congress, and leaders from the Electronic Transactions Association, the group listened to a number of speakers. Speaking with the financial columnist, Rachel McIntosh, Christopher Giancarlo told the publication “the purpose of the hearing,” which includes “inclusive banking during a pandemic: using FedAccounts and Digital Tools to improve Delivery of Stimulus Payments,’ but it wasn’t only to discuss the ‘digital dollar,’ but to spark a conversation around better digital solutions for financial inclusion.”

  • JPMorgan: Bitcoin’s Market Structure More Resilient Than Currencies, Equities, Treasuries and Gold
• In a new report entitled “Cryptocurrency takes its first stress test: Digital gold, pyrite, or something in between?” JPMorgan’s strategists say bitcoin is looking “mostly positive,” Bloomberg reported Friday. The report, led by head of U.S. interest rate derivatives strategy Joshua Younger and cross-asset research analyst Nikolaos Panigirtzoglou, shows that cryptocurrencies have “longevity as an asset class.”

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June Weekly Recap 2

June 1st - June 8th, 2020

Welcome to our 2nd weekly recap for June.

Overview 

Crypto News

• • Swiss Banks Launch Cryptocurrency Trading and Custody After Gaining Regulatory Approval

• The Swiss Financial Market Supervisory Authority (FINMA) recently approved two banks — Maerki Baumann and Incore Bank — to offer several cryptocurrency services on Friday.

  • India to Significantly Increase Crypto Market Share

• The Indian cryptocurrency market is poised to gain considerable global market share starting this year, according to a report published last week by Coinpaprika, a cryptocurrency research platform, and Okex, a global cryptocurrency exchange.

  • US Regulators Target Bitcoin ATMs

• Bitcoin automated teller machines (BATMs) will become the next target for regulators, as world governments tighten screws on money laundering. According to Ciphertrace CTO John Jeffries, crypto-cash machines will attract “greater…regulatory focus” in a bid to rein-in alleged cross-border illicit financial transfers.

  • Japanese Finance Minister Shoots Down Plan to Cut Bitcoin Tax to 20%
• Japan’s finance minister Taro Aso says he is opposed to reducing tax on bitcoin income to 20%, on par with stock dividends, arguing that most Japanese households find it difficult to invest in digital assets. The development suggests that Japan will uphold its current definition of cryptocurrency as miscellaneous income, whereby virtual currency is taxed at rates of up to 55%.

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June Weekly Recap 1

May 26th - June 1st, 2020

Welcome to our 1st weekly recap for June.

Overview 

Crypto News

• • South Korea Is Exploring New Crypto Tax Laws

• South Korea’s Ministry of Economy and Finance is preparing an amendment to apply to the nation’s Income Tax Law. This could include rules for profitable sales of cryptocurrencies as well as profits from national crypto mining projects.

  • Grayscale Bitcoin Trust Buys Over 1.5 Times Total BTC Mined Since Halving

• Grayscale Bitcoin Trust (GBTC) has been racking up the number of BTC it has purchased since the third Bitcoin halving. During the two-week period, Grayscale Investments bought a total of 18,910.47949263 bitcoins.

  • China Passes Law Protecting Cryptocurrency Inheritance

• The third session of the 13th National People’s Congress (NPC), China’s top legislature, voted on and passed the “Civil Code of the People’s Republic of China” on Thursday. In addition to general and supplementary provisions, the civil code ”includes six parts on real rights, contracts, personality rights, marriage and family, inheritance, and tort liabilities,” Xinhua News Agency reported.

  The new civil code states that the property rights of individuals are equally safeguarded to those of the State and collective, and online virtual assets are protected, too.

  • JPMorgan Suddenly Appears To Be Going All In On Crypto
• Earlier this month, JPMorgan signed Coinbase and rival bitcoin and crypto exchange Gemini after a lengthy vetting period. JPMorgan approved the two bitcoin exchanges’ accounts last month and is already processing transactions, potentially signaling the end of the crypto industry’s banking woes.

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May Weekly Recap 4

May 19th - May 25th, 2020

Welcome to our 4th weekly recap for May.

Overview 

Crypto News

• • Litecoin Fdn. Partners With Videogame Maker Atari

• The Litecoin Foundation has announced a partnership with the legendary videogame company of Atari. LTC will now be accepted as a means of investing in the Atari token, to be issued in September 2020, and as a payment option for purchasing the new Atari VCS gaming console.

  • Albania Approves Europe’s Most Comprehensive Crypto Law Yet

• Albania’s Parliament signed a bill into law on May 21 plenary session a legal framework for cryptocurrencies. The legislation looks to regulate the conditions for licensing all crypto activities in the country. Beyond digital tokens, the law looks to monitor all infrastructure where DLT technology operates.

  • Chinese Government Advisers Propose Regional Stablecoin for 4 Asian Countries:

• The proposal unveiled Thursday describes the currencies as a “stablecoin”. The basket of underlying collateral would follow the special drawing rights (SDR) model of the International Monetary Fund (IMF), where each country’s currency is assigned a different weight based on its economy.

  • Russia Proposes Law That Criminalizes Buying Bitcoin With Cash
• According to draft bills submitted by a group of deputies to the Russian parliament recently, individuals may face up to seven years in prison and fines of up to $7,000 for using BTC in financial transactions. People will also be penalized for buying crypto with cash or transferring to accounts opened with Russian banks.

May Weekly Recap 3

May 12th - May 18th, 2020

Welcome to our 3rd weekly recap for May.

Overview 

Crypto News

• • STABLECOIN SUPPLY BREAKS $10B

• The value of assets for all stablecoins surpassed $10b on Tuesday, having surged by over 70% in just two months, according to Coin Metrics. Most of the stable coin growth comes from tether, which represents almost 90% of the total stable coin supply. The largest tether markets measured by traded volume are supported by two Asia-based exchanges, Binance and Huobi.

  • $2B CRYPTO HEDGE FUND INDUSTRY SET TO GROW SIGNIFICANTLY

• Cryptocurrency hedge funds’ assets under management more than doubled in 2019, according to a new survey by PWC and Elwood Asset Management Services Ltd. The data comes from “the largest global crypto hedge funds by assets under management (AUM).

  • CANADIAN FIRM REPORTS BTC MINED IN Q1 DECLINED 54%

• For the three months to March 31, 2020, the Canadian bitcoin firm, Hut 8 Mining, said it mined 1,116 BTC, down 54% from the 2,405 BTC a year earlier. It blamed the decline on “increasing network difficulty (that) impacted the company’s production negatively”.

  • BITWALA LAUNCHES BTC INTEREST ACCOUNT
• A court in Shanghai, China, has reportedly ruled that bitcoin is an asset protected by Chinese law in a case that has dragged on for years. The case involves the theft of two different cryptocurrencies, one being bitcoin, from an American. The defendants argued that bitcoin was not recognized under Chinese law; the court disagreed, citing documents by the central bank, the People’s Bank of China (PBOC).

• • CRYPTO DERIVATIVES EXCHANGE LAUNCHES BTC HASHRATE FUTURES
• On Friday, cryptocurrency derivatives exchange, FTX, launched a hash rate futures tool that allows Bitcoin (BTC) miners to hedge against mining difficulty risk. Hash rate is the amount of processing power dedicated to a Bitcoin network at a given time and determines the strength and security of the network. FTX leverages this mining difficulty that validates bitcoin transactions.

May Weekly Recap 2

May 5th - May 11th, 2020

Welcome to our 2nd weekly recap for May.

Overview 

Crypto News

• • IRAN LICENSES CRYPTO MINING ENTERPRISE

• Iran has issued a bitcoin mining license to Iminer, a Turkish-based company. Iminer will operate up to 6,000 rigs, with a computing power of 96,000 terahash per second (TH/s) in total. According to reports, the miner has spent $7.3 million setting up the mining facility, located in Iran’s central city of Semnan.

  • BITCOIN ATM NUMBER SURGES

• The number of bitcoin ATM locations has been growing rapidly amid nationwide lockdowns and the coronavirus crisis. With hundreds of new machines added each month, there are now more than 7,700 bitcoin ATMs spread all over the world.

  • NEW CRYPTOCURRENCY EXCHANGE LAUNCHES IN INDIA

• The Indian cryptocurrency industry has been growing rapidly despite the nationwide lockdown and the coronavirus crisis. Two new cryptocurrency trading platforms are launching in India while existing crypto businesses seek clarification from the central bank, the Reserve Bank of India (RBI).

  • CHINESE COURT RULES BTC IS ASSET PROTECTED BY LAW
• A court in Shanghai, China, has reportedly ruled that bitcoin is an asset protected by Chinese law in a case that has dragged on for years. The case involves the theft of two different cryptocurrencies, one being bitcoin, from an American. The defendants argued that bitcoin was not recognized under Chinese law; the court disagreed, citing documents by the central bank, the People’s Bank of China (PBOC).

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