News Updates August 29, 2022

1. UN Human Rights Chief Voices Concern Over Assange Extradition Case, Wikileaks Continues to Raise Large Sums of Crypto

On Saturday, the human rights chief at the United Nations (UN), Michelle Bachelet, said that the potential extradition of whistleblower Julian Assange raises concerns for the rights of future whistleblowers and investigative journalists. Meanwhile, cryptocurrency supporters have continued to donate to Assange and his legal battle as Wikileaks has amassed hundreds of thousands of dollars in crypto assets since Assange has been held captive in London from 2019.

 *UN Human Rights Chief Says the United States Attempt to Extradite Assange ‘Raises Concerns Relating to Media Freedom’*

The United States would like to see Julian Assange, the founder of Wikileaks, extradited to the U.S. for leaking classified information provided by U.S. Army intelligence analyst Chelsea Manning. When Wikileaks published the video “Collateral Murder,” the Afghanistan war logs, the Iraq war logs, and Cablegate, the U.S. government launched a full-scale criminal investigation against Assange. When the federal authorities unsealed an indictment against Assange, the complaints stemmed from the leaks provided by Manning. Assange is being accused of violating the Espionage Act of 1917.

Assange joins a slew of others who have been charged under the Espionage Act of 1917 including Alexander Berkman, Emma Goldman, Daniel Ellsberg, Chelsea Manning, and Edward Snowden. While Assange was granted asylum by Ecuador in 2012, seven years later on April 11, 2019, he was dragged out of the Ecuadorian embassy in London and has been fighting U.S. extradition ever since. This week, Michelle Bachelet, the UN’s human rights chief, has voiced concerns over extraditing Assange to the United States.

One of Assange’s lawyers, Jennifer Robinson, told the press that the case will be forwarded to the European Court of Human Rights. Assange’s lawyers contest that the Wikileaks founder is being “prosecuted and punished for his political opinions.” Following Bachelet’s initial comments, the UN human rights chief said her office will be monitoring the whistleblower’s case.

“In these circumstances, I would like to emphasize the importance of ensuring respect [for] Mr. Assange’s human rights, in particular the right to a fair trial and due process guarantees in this case,” Bachelet told the press. “My office will continue to closely follow Assange’s case.”

 *Wikileaks Raises Hundreds of Thousands in Bitcoin, Ethereum, and Bitcoin Cash* 

Wikileaks has supported cryptocurrencies and accepted bitcoin for donations since 2010. After Assange’s arrest at the Ecuadorian embassy in London, cryptocurrency donations started to pour in and they have continued to this very day. In the past four months alone, Wikileaks has raised 3.480 BTC worth $133,179 using today’s bitcoin exchange rates. The Wikileaks BTC has changed frequently over the last few years.

2. US dollar hits new 20-year high — 5 things to know in Bitcoin this week

A familiar tale of losing stocks and a surging greenback greets Bitcoin traders this week as $20,000 fails to sustain as support.

Bitcoin (BTC) heads into the first week of September on a rocky road downhill after United States markets’ Jackson Hole rout.

After the U.S. Federal Reserve reinforced hawkish comments on the inflation outlook, risk assets sold off across the board, and crypto is still reeling from the aftermath.

A fairly nonvolatile weekend did little to improve the mood, and BTC price action has returned to focus on areas below $20,000.

In so doing, multiple weeks of upside have effectively disappeared, and in turn, traders and analysts expect a retest of the macro lows seen in June this year.

While all is now quiet regarding the Fed until the September rate hike decision, there is still plenty of room for upset as geopolitical uncertainty and inflation persist, the latter still increasing in Europe.

However, as of last week, Bitcoin appears fundamentally resilient as a network, with on-chain data telling a different story to price charts.

Cointelegraph takes a look at five factors to consider when wondering where BTC/USD may head in the coming days.

 *Spot price triggers $18,000 target*

Data from Cointelegraph Markets Pro and TradingView confirms no surprises for guessing what happened to BTC/USD into the latest weekly close.

After a comparatively uneventful weekend trading period, the pair sold off considerably at the end of Aug. 28, resulting in the lowest weekly close since early July.

A $2,000 red weekly candle thus sealed a miserable August for the bulls, this following an initial $3,000 of losses the week prior.

Much more people expecting 19k than those expecting 23k. Funding says it all. Also, there's a lot of juicy liquidity above 21k. Squeeze those shorts,” he tweeted.

Responding, trader Mark Cullen noted that traders were “adding more BTC shorts in the area between 20.1 and 20.3k.”

“There is a nice inefficiency above there and another at around 20.9-21.1k. If it can break up it's likely to be a fast move higher,” he added.

Amid various calls for $17,000 or lower, technical analyst Gert van Lagen gave a $17,500 floor target for the daily chart.

 *U.S. dollar targets September 2002 levels* 

A key accompaniment to upheaval in equities remains the strength of the U.S. dollar this week.

A classic inversely correlated relationship, dollar performance versus risk assets is in the spotlight thanks to the U.S. dollar index (DXY) making new twenty-year highs this week.

At the time of writing on Aug. 29, those highs are still playing out, DXY having hit 109.47 in its highest spike since September 2002.

3. Markets: Bitcoin fails to hold above US$20,000, Ether slumps, SHIB slides

Bitcoin traded below US$20,000 and Ether fell further in Monday afternoon trading in Asia. Solana fell, along with memecoins Dogecoin (DOGE) and Shiba Inu (SHIB), with SHIB dropping below Dai and Polygon by market capitalization.

* Bitcoin traded down 0.83% in the past 24 hours at US$19,888 as of 4 p.m. in Hong Kong, after briefly recovering above the US$20,000 mark in the morning. Ethereum dropped 2.86% to US$1,454, according to data from CoinMarketCap.

* The two largest coins by market capitalization slumped over the weekend after U.S. Federal Reserve Chairman Jerome Powell said on Friday that higher interest rates will likely persist “for some time” due to concerns about inflation.

* Powell’s remarks “destroyed any hopes of a potential change in course regarding rate hikes,” Feroze Medora, Asia Pacific managing director for crypto exchange Gemini, said in an email

* DOGE was down 3.19% in the past 24 hours. SHIB lost 2.96% in the prior 24 hours and was off 7.67% over the past seven days, sliding from the number 12 slot by market cap to 14.

* Solana was the biggest loser among CoinMarketCap’s top 10, logging a 3.83% 24-hour loss and a 12.82% seven-day decline.

* The inflation picture in Asia is mixed, with authorities in the region’s two biggest economies, China and Japan, remaining outliers as Beijing cut rates this month and Tokyo has stuck with its ultra-low rate policy. Elsewhere in Asia, monetary policy is more in line with the U.S. and Europe. South Korea and Indonesia raised rates last week, citing inflation concerns. India, Australia, the Philippines, Thailand and New Zealand all upped rates in August.

* Asia stocks tumbled, following on from the slump on Wall Street on Friday. The Nikkei 225 index closed down 2.66%, and South Korea’s Kospi index fell 2.18%. The Hong Kong Hang Seng index edged down 0.73%, while the Shanghai Composite index was little changed, up 0.14% at closing.

• Whether this is just a temporary sell-off across markets remains to be seen but one thing is for sure — no one can tell just how short ‘temporary’ will be,” Medora said.

4. Crypto ATM Company Bitbase Prepares to Open Operations in Venezuela This Year

Bitbase, a cryptocurrency store and ATM company headquartered in Spain is preparing to open operations in Venezuela this year. The company is now looking for employees for the stores and crypto ATMs that will be opened. Bitbase would be one of the first international exchanges to open an office in the country.

 *Bitbase Prepares to Launch Operations in Venezuela*

Latam countries have become an attractive destiny for cryptocurrency exchanges and companies due to the relevance that crypto assets have reached in some countries. This is because of the economic problems that the region is facing, including high levels of inflation and devaluation. Bitbase, a Spain-based cryptocurrency ATM and store company, is preparing to launch operations in Venezuela later this year.

The conditions have made the country fertile ground for the growth of cryptocurrency usage. Bitbase is betting on this growth to continue, as it expects to open several stores in the country. About this, Enrique De Los Reyes, the manager of Bitbase in Venezuela, declared:

Bitbase’s business model includes physical stores, in which employees explain to users how to use crypto and serve as intermediaries for crypto operations. This focus aims to onboard users who value physicality and would otherwise not be interested in the cryptocurrency world.

Furthermore, Bitbase is already operating from an office in the trade industry and foreign company department of the Spanish embassy in Caracas. If the launch happens this year, it would be one of the first international crypto companies to operate in Venezuela.

Bitbase announced its interest in entering the Venezuelan market in February when de Los Reyes stated that the company might take advantage of the commercial opening the country was experiencing at that time. In the same way, the company entered Latam by opening its first store in Paraguay in July.

5. Bitcoin Faces an Uphill Task of Recovery as It Drops to $19,842

 *Today, the price of Bitcoin (BTC) has fallen*

to a low of $19,811 as sellers break through support at $20,790. Earlier, the largest cryptocurrency faced heavy selling pressure at the $24,000 and $22,000 resistance zones.

On August 19, the BTC price fell from the upper resistance zone of $24,000 to $20,790. Buyers stopped the decline when the cryptocurrency resumed a sideways movement for a week. However, after an upward correction to the $22,000 resistance zone, Bitcoin came under selling pressure again. 

On August 28, BTC/USD dropped to the low of $19,540 as bulls bought the dips. The current decline has pushed Bitcoin below the psychological price level of $20,000. Today, the BTC price is correcting upwards to reach the high of $19,841. On the downside, the largest cryptocurrency could regain the previous lows of $18,638 or $17,605 if it comes under selling pressure after the recent high. Nevertheless, a further downward movement of the price is doubtful as the market reaches the oversold zone.

Bitcoin is at level 33 of the Relative Strength Index for the period 14. The cryptocurrency is in a downtrend as it approaches the oversold area. Nevertheless, the BTC price is below the 20% area of the daily stochastic. The cryptocurrency is trading in the oversold area, which indicates that the selling pressure is exhausted. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

 *What is the next direction for BTC?*

Bitcoin is in an upward correction after falling to a low of $19,540. The cryptocurrency will regain its bullish momentum if it breaks above the $22,000 resistance zone. However, selling pressure will pick up again if Bitcoin experiences another rejection.

6. Singapore Plans to Make Crypto Trading More Difficult for Retail Investors

Regulators in Singapore are tightening their grip over crypto trading activities in the country. On Monday, August 29, the chief of Singapore’s central bank said that the city is considering new measures to make crypto trading even more difficult for retail investors.

He further noted that retail investors have been “irrationally oblivious” about the risks associated with crypto trading. Earlier this year in January, the MAS issued guidelines to limit crypto trading service providers from promoting their services to the public. This was a move to shield retail investors from the volatility in the crypto space.

 *MAS Making a Move on Crypto Regulations* 

Addressing the ongoing liquidity crisis and withdrawals, especially with the current case of troubled hedge fund Three Arrows Capital, the MAS is taking new measures to bring crypto regulations into the country.

Last week, the central bank of Singapore sent detailed questionnaires to all firms holding MAS’ Digital Payment Token licenses. As per the Bloomberg report, the goal was to obtain “highly granular information” regarding business activity and holdings of examined crypto firms.

The MAS aims to check the financial stability and interconnection among crypto firms. The bankrupt hedge fund Three Arrows Capital has given a major blow to the crypto markets this year.

 *The MAS is looking to seek some crucial* 

details from crypto firms such as top lending and borrowing counterparties, top tokens owned, top tokens staked via decentralized finance protocols, and the amount loaned.

Last month in July, MAS chief Ravi Menon also said that they have been working on a regulatory framework. This framework will address “consumer protection, market conduct, and reserve backing for stablecoins.

7. Dubai issues crypto marketing rules to better protect investors

Dubai's new Virtual Asset Regulatory Authority requires more clarity and transparency from industry marketers and promoters in order to protect investors.

 *Amid Dubai moving forward with a new*

license program for cryptocurrency service providers, local regulators are introducing additional marketing and advertising rules for the industry.

Dubai’s Virtual Asset Regulatory Authority (VARA), the city’s dedicated crypto regulator, reportedly announced new regulatory guidelines on marketing, advertising and promotions of virtual assets on Aug. 25.

In the rules, the VARA referred to all forms of outreach, communications and advertising, dissemination of information, building awareness, customer engagement, investor solicitation and others, the local news agency Gulf News reported.

The guidelines cover all virtual asset-related communications and entities publishing information on Dubai-based media websites, search platforms as well as online and offline publishing channels that target customers within the Dubai market.

The rules reportedly also require all local virtual asset service providers (VASP), including advertising platforms, to ensure factual accuracy and openly demonstrate any promotional intent to avoid misleading potential customers.

The VARA reportedly noted that the new guidelines relate to Dubai’s crypto-focused Minimal Viable Product (MVP) license, stating:

As previously reported, Sam Bankman-Fried’s FTX crypto exchange was one of the first companies to receive VARA’s MVP license through its local subsidiary FZE in July 2022. The license enabled FZE to operate a VASP in the region fully.

 *Singapore MAS examines crypto firms ahead of new regulations: Report*

VARA’s guidelines came along with Abu Dhabi’s new plans to launch a strategy for blockchain and virtual assets that aligns with the country’s overall economic strategy. On Aug. 25, the Abu Dhabi Blockchain and Virtual Assets Committee held its first meeting to discuss the strategy.

Established in March 2022, Dubai’s VARA is responsible for licensing and regulating all VASPs in the Emirate’s special development and free zones with the exception of the Dubai International Financial Centre. The regulator is known for its ambitious industry regulation plans, purchasing land in the virtual reality world The Sandbox in May.

8. Argentinian Province Mendoza Starts Accepting Tax Payments in Crypto

Mendoza, an Argentinian province, has implemented a system that allows taxpayers to pay their taxes fully with cryptocurrencies. The system, which was launched this week, is part of a strategic push for the modernization and digitalization of payments carried by the tax authority of Mendoza and uses the services of a third party to process the transactions.

 *Mendoza Goes Crypto for Tax Payments*

More and more governments are including cryptocurrencies as a way of paying state-related obligations due to their recent popularity. Mendoza, a province of Argentina, is one of the first in the country to implement a digital system that allows taxpayers to execute payments and other operations with digital currencies.

The system, launched on August 24, is part of a strategic move by the authorities of the province to modernize the payment of tax and state tributes, offering several options to citizens to fulfill their obligations. Nicolas Chávez, general director of the Mendoza tax administration authority, stated:

While the payment utility is directly embedded in the page of the province, the payments are processed by a third-party company, that accepts crypto and liquidates the payments made in Argentinian pesos to the province. The system only receives payments in stablecoins, including USDT, USDC, and DAI, among others. In this way, the system maintains volatility out of its operations.

Other municipal governments in Argentina and in Latam have also announced the inclusion of cryptocurrencies as a means of payment for taxes. Last April the head of the government of Buenos Aires, Horacio Larreta, announced that the city was planning to also introduce crypto payments for taxes. Larreta stated that this use case could be implemented in 2023 alongside a blockchain-based identification system.

Rio de Janeiro, one of the biggest cities in Brazil, also reported the inclusion of these assets as payments for taxes in 2023 due to their popularity. But Rio’s plans go even further, envisioning crypto payments for other services like taxi rides, and NFTs to promote the areas of arts, culture, and tourism, as well as investing part of the city funds in crypto through a new institution, the Municipal Committee for Crypto Investments.

9. South Korea’s Central Bank Calls for End to ICO Ban

South Korea’s blanket ban on initial coin offerings (ICOs) could finally be on the way out after the central Bank of Korea (BOK) spoke out in favor of policy change.

The ban was first put into place in late 2017 as crypto fever took hold in the country and the government responded with a series of hardline measures. But the ban, many big businesses claim, has hamstrung many conglomerates who want to launch cryptoassets as part of their future-focused business expansion plans.

Since the ban was put in place, the likes of Kakao and the Hyundai Group have had to launch coins via overseas affiliates – in locations such as Switzerland and Singapore. But firms are itching to release coins through domestic channels. And President Yoon Seok-yul, who took power in May, has indicated that he is prepared to finally lift the ban.

Companies, such as the savings provider OK Financial Group and the SK affiliate SK Square, have already announced their own intentions to launch coins – with many others keen to follow suit.

But the BOK’s latest call could be the final nail in the ban’s coffin. Newsis reported that the BOK today issued a paper on the impact of the EU’s crypto regulation and included a series of recommendations for the South Korean government.

In the paper, the BOK explained that any new crypto-specific legislation should “institutionally permit the issuance of new domestic cryptoassets” – although it did warn that all ICOs should be subject to regulatory scrutiny.

The bank was quoted as stating that EU measures proved that regulators could apply “the same level of regulation” to ICOs as they do to crypto exchanges.

A spokesperson was quoted as explaining that lifting the ban in favor of allowing regulated ICOs could “enable the development of related industries” while also providing “protection for customers and investors.”

The same paper also made note of the need to “adopt Markets in Cryptoassets (MiCA)-level regulations” for stablecoins – and added that forthcoming crypto legislation would not cover any central bank digital currency (CBDC)-related matters.