News updates April 27, 2022
1. Bitcoin’s (BTC) Latest Tumble Below $40k Was Triggered By This:
Bitcoin (BTC) slumped on Wednesday, sinking below a key support level and triggering mass liquidations across the crypto market. The token’s latest slump appears to be directly tied to a drop in major U.S. technology stocks.
BTC sank over 5% in the past 24 hours, and is trading around $38,500 as of writing. In comparison, the Nasdaq 100 index slumped nearly 4% on Tuesday as investors feared an economic slowdown that could hurt earnings.
**Tech stocks down, BTC-Nasdaq correlation up:*
Losses in tech stocks spilled over to BTC. The token has behaved exceedingly like U.S. tech stocks this year. Correlation between BTC and U.S. tech stocks also hit a record high earlier in April, according to data from Bloomberg.
BTC’s sensitivity to macro factors such as inflation and monetary policy make it behave more in line with stocks. This has also cost the token its potential status as a digital safe haven.
2. Bitcoin rebounds off 6-week lows amid warning of ‘brutal’ BTC price bull trap:
As the U.S. dollar challenges March 2020 highs, all bets are off when it comes to fresh Bitcoin price strength.
Bitcoin (BTC) reclaimed $39,000 on April 27 after another night of pain saw BTC/USD hit its lowest levels since mid-March.
*All assets suffer” at hands of rampant dollar*
Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency trading at $39,200 on Bitstamp at the time of writing, up 2.5%.
April 26 had seen fresh trouble as soon as Wall Street trading began, Bitcoin following stocks downhill once again to hit $37,700 twice.
Despite that area already being on the radar as a liquidity grab opportunity, some were far from convinced that the sell-off was done.
The current relief, popular trader Kaleo argued, was simply a form of a dead-cat bounce and the real pain would begin when momentum faltered.
3. Brazil’s Senate approves ‘Bitcoin law’ to regulate cryptocurrencies:
It’s a historic day for cryptocurrencies in Brazil, as the Senate has finally approved the country’s first bill aimed at regulating the crypto market.
Brazil’s Senate has passed the country’s first bill governing cryptocurrencies in a plenary session, which will set the stage for the creation of a regulatory framework for the country’s crypto industry.
The bill must be approved by the Chamber of Deputies and then signed off by President Jair Bolsonaro to become law in the country. This is expected to occur by the end of 2022, according to experts who spoke with Cointelegraph Brasil.
*Brazilian central bank president confirms CBDC pilot will launch in 2022*
The bill does not appear to face many challenges in the Chamber of Deputies, where it must be approved in a plenary session before being sent to President Bolsinaro before becoming law.
4. Why Crypto Companies Are Choosing the Bahamas to Set Up Shop:
* FTX cited friendlier regulations and looser Covid-19 restrictions as reasons for its move from Hong Kong to the Bahamas.
* The island nation has pushed the pace for the development of sophisticated digital asset regulatory frameworks as it eyes large crypto businesses.
Cryptocurrency exchange FTX has cemented its relationship with the Bahamas, having broken ground Monday on its new headquarters in the country’s capital.
Announced partly by FTX’s co-CEO, Ryan Salame, the move could serve as a bellwether for similar crypto companies looking to take advantage of the island country’s favorable tax and regulatory frameworks.
Founded by billionaire Sam Bankman-Fried, FTX is incorporated in the neighboring island nation of Antigua and Barbuda, while its new headquarters will be based in the Bahamas’ capital of Nassau.
The company plans to construct a campus at the same location, estimated to cost up to $60 million, with the intent of housing 1,000 employees, according to local news outlet The Nassau Guardian.
The complex will feature a boutique hotel with 34 rooms, as well as commercial space.
Last year, the crypto derivatives marketplace made the decision to relocate from Hong Kong to bluer waters, citing friendlier regulations and no mandatory Covid-19 quarantine upon arrival.
Coupled with its “draconian” pandemic measures, the special administrative region’s bout and subsequent failure to maintain its democratic government has led international companies to reconsider their future in Hong Kong — jurisdictions including Singapore and the Bahamas appear sanguine, according to some.
5. Argentinian Tax Agency Supports Creation of Global Crypto Report System to Avoid Evasion:
The AFIP, the Argentinian tax agency, is supporting the creation of a centralized system that serves as a registry for cryptocurrency holders. According to statements from its head, this would make it easier for tax agencies all over the world to curb evasion. The organization has already made use of financial information to collect taxes from Argentinian users with bank accounts abroad.
*Argentinian Tax Agency Backs Crypto Holder Registry Creation*
The AFIP, which is the Argentinian national tax collecting agency, wants to advance its efficiency in the collection of crypto-related taxes. In this sense, the organization has voiced its public support for creating a cryptocurrency holder registry, by making changes to include the digital assets in the current automatic exchange data system operated by the Organization for Economic Co-operation and Development (OECD). The head of the AFIP, Mercedes Marco del Pont, stated at an event that:
*AFIP Strengthens Controls*
The Argentinian Tax Office managed to include digital wallets, that is, funds that users had stored on fintech platforms, as part of the assets that can be seized to pay for tax debt. This measure allowed the organization to act in more than 5,000 cases where taxpayers did not have any other properties to seize. This is possible because the organization receives reports from fintech companies about the holdings of their customers.
The Argentinian government is trying to raise funds to pay off the debt it has with the International Monetary Fund, and one of its strategies is to implement new tax collection methods. In March, the organization started scrutinizing the movements of cryptocurrency traders directly, sending requirements to some to report their crypto movements. Also, a law project that seeks to tax the holdings that Argentinians have around the world, including cryptocurrencies, was presented to the Senate earlier this month.
6. Europe's Lawmakers Set to Advance Discussion of Controversial Crypto AML Rules:
Talks on contentious anti-money laundering rules for the sector are reaching the closing stage, but some hope there’ll be wiggle room on small payments, unhosted wallets and transition periods.
Talks involving the European Union’s parliament, commission and council begin Thursday on controversial anti-money laundering rules for crypto transactions, the last stage towards the passage into law of measures that some have said could kill privacy and stifle innovation.
Many in the industry question the premise that tough new rules are needed against a tide of criminal behavior, but more pragmatic voices are looking at the legislative details that could prove crucial – such as how the law will treat small payments and unhosted wallets, as well as when the new law would take effect.
The draft legislation would require crypto providers to verify customer details and report suspicious transactions to the authorities – but the industry has complained it could prove burdensome to implement, and would end digital anonymity.
A last-minute protest led by Coinbase (COIN) and similar companies largely fell on deaf ears, and on March 31 European Parliament lawmakers voted to apply tough money-laundering rules to the sector, arguing the rules were needed to curb crime. Now, attention turns to what the final form of the law will be – where talks are reaching the closing stage.
Both lawmakers at the European Parliament and national government meeting in the EU’s Council have said they want to see tighter monitoring of which parties take part in crypto transactions. They say that should apply even for the smallest payments – unlike for conventional bank transfers where customer identity only needs to be verified for transactions over 1,000 euros ($1,066) – as it’s easier to circumvent by chopping up digital payments into small chunks.
7. Bank Of Canada Governor Maintains That Its Financial System Would Always Be Built Around The Canadian Dollar, Not Crypto
The Governor of the Bank of Canada (BoC) has reiterated the place of the Canadian dollar, aka loonie, in the country’s financial system. Tiff Macklem’s statement responds to the recent vocal support that leading conservative party PM candidate Pierre Poilievre has given the nascent market as part of his campaign.
Reuters reported on Monday that the governor of Canada’s central bank, Tiff Macklem, has said that the Canadian dollar will remain the primary focus of the financial system. The BoC chief said this while speaking before a Canadian House of Commons committee. Asked about statements by leading conservative PM candidate Pierre Poilievre declaring plans to make Canada a crypto haven, Macklem said:
“There are promising benefits from innovation in the financial sector. Having said that, we certainly expect the Canadian dollar will remain at the center of the Canadian financial system.”
Pierre Poilievre, the leading conservative party PM candidate in question, has often promised followers that he would create a decentralized economic system that allowed individuals to take control of their money if elected. A month ago, the politician famously uploaded a video to YouTube where he purchased shawarma with Bitcoin as part of his campaign.
8. Experts Warn Australia Risks Falling Behind In Global Crypto Adoption Race
Australia has been making progress in regulating crypto, but the pace at which it is progressing has not satisfied some onlookers. Two Australian crypto leaders have warned that the country risks getting left behind in the global crypto adoption scene.
While speaking with the Australian Financial Review, Greg Medcraft, former chairman of the Australian Securities and Investments Commission (ASIC), and Mark Carnegie, a venture capitalist, stated that Australia must quickly develop a plan that encourages digital asset technology and investment.
The two market participants stated that it is high time Australia has a bipartisan approach to embracing the multi-million-dollar opportunity that the crypto industry provides.
For Medcraft, this is especially necessary seeing how other countries like Britain and the US are laying out frameworks for adopting crypto. If Australia is to remain competitive and lure crypto investment, it must signal the right environment.
9. New York State Assembly passes ban on new BTC mines that don't use green power
The New York State Assembly passed a bill late on Tuesday April 26 that would place a two-year ban on all new proof-of-work (PoW) cryptocurrency mining facilities in the state that use a carbon based fuel to power their operations.
The bill sponsored by Anna Kelles would not only impose a two-year hold on approval of any new Bitcoin mines, the proposed moratorium would also prevent the renewal of permits issued to existing PoW cryptocurrency miners using carbon sourced energy if they seek to increase the amount of electricity consumed.
