News updates March 12, 2022
1. Bitcoin Outflows Spike As 30k BTC Exits Exchanges, Reserve Plunges Down:
Bitcoin outflows have shown a spike amounting to 30k BTC today, leading to a plunge in the all exchanges reserve.
1) Bitcoin Netflow Shows Deep Negative Spike As 30k BTC Exits Exchanges:
As pointed out by an analyst in a CryptoQuant post, the BTC exchange netflow showed a large negative spike earlier today.
The “outflow” is a measure of the total amount of Bitcoin exiting wallets of all exchanges. Similarly, the number of coins being deposited to exchanges is the “inflow.”
The difference between the inflow and the outflow is called the netflow. This indicator tells us the net amount of coins moving into or out of exchanges.
When the value of this indicator is negative, it means outflows are currently overwhelming the inflows and a net amount of Bitcoin is exiting exchanges. Such a trend, when prolonged, can be bullish for the price of the crypto as it may be a sign of accumulation.
On the other hand, a positive netflow shows that a net amount of coins are entering exchange wallets at the moment. Since investors usually deposit to exchanges for selling purposes, this trend can be bearish for the coin.
2) BTC Price:
At the time of writing, Bitcoin’s price floats around $40k, down 3% in the last seven days. Over the past month, the crypto has lost 6% in value.
The below chart shows the trend in the price of the coin over the last five days.
2. US Treasury Launching Cryptocurrency Awareness Program
The U.S. Department of the Treasury is launching an initiative to raise awareness about cryptocurrency investing, Reuters reported Tuesday, citing an interview with Nellie Liang, Treasury undersecretary for domestic finance.
The Treasury’s Financial Literacy Education Commission will create educational materials and organize outreach on digital assets. The government aims to inform the public about how crypto assets work and how they are different from other forms of payment.
President Joe Biden issued an executive order on the regulation of crypto assets Wednesday. The order directs Treasury Secretary Janet Yellen to submit a report within 180 days on the future of money and payment systems, “including the conditions that drive broad adoption of digital assets,” the White House said.
3. US and EU double down on measures against Russia potentially using crypto to evade sanctions
The United States and the European Union have announced new actions targeting Russia’s economy and wealthy individuals as a report suggests Vladimir Putin’s allies have attempted to circumvent sanctions using cryptocurrency in foreign countries.
In a Friday announcement, the White House said leadership from the United States, Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union will take additional actions aimed at economically isolating Russia in response to President Vladimir Putin’s military invasion of Ukraine. The announcement includes banning imports of many Russian goods, banning the export of luxury goods to Russia and guidance for the U.S. Treasury Department to monitor the country’s attempts to evade existing sanctions.
Justice Department will be forming a new task force aimed at freezing or seizing the crypto holdings of wealthy Russian individuals as well as investigating those banks and crypto firms that help entities named under sanctions for money laundering. In the United Kingdom, the Financial Conduct Authority and Office of Financial Sanctions Implementation issued a joint statement warning crypto firms to “play their part in ensuring that sanctions are complied with.”
4. The Rise of Crypto Casinos
It’s easy to think of cryptocurrencies as just a new payment method. To be fair, they are, but they’re also so much more than that.
They’re a new way of thinking about money and its potential to shape our world. That’s why everyone wants to understand how cryptocurrency casino games work and why you should be excited about their future.
Cryptocurrency casino games are growing in popularity because they offer something that traditional casinos don’t: anonymity. Players don’t need to create accounts to play when they use crypto. They can play whenever they like without worrying about being tracked or having their personal information revealed.
Cryptocurrencies are built on blockchain technology. This means that transactions in the top online casino in the UK are safe and secure and cannot be tampered with. This is especially attractive for users who want to protect their identity.
5. South Korea Elects Bitcoin-Friendly President — Here Is What He Plans To Do
On Thursday, March 10, Yoon Suk-yeol, the leader of South Korea’s largest opposition party clinched victory, becoming the president-elect after scooping roughly 49% of the votes using among other campaign strategies, a platform that appealed to crypto enthusiasts.
Yoon, 61, had come up with the brilliant plan of spreading a crypto-friendly narrative, wooing a huge number of people in their 20s and 30s who are already balls deep into cryptocurrencies.
Apart from promising to institutionalize cryptocurrencies and NFTs under a new government agency to be named the Digital Industry Promotion Agency, he also plans on enacting a comprehensive legal framework for digital assets which he said would help the country “recover illegal profits from unfair trade practices”.
6. Bank of Israel issues draft guidelines on cryptocurrency AML/CFT
the Bank of Israel published a draft regulation on Anti-Money-Laundering and Combatting the Financing of Terrorism (AML/CFT) risk management for the banks facilitating crypto-to-fiat transactions.
The move hints at the Israeli government’s preparations to legalize and regulate the relationship between banks and virtual currency service providers (VASPs). The document cites the customers’ increased involvement with digital assets as the rationale for the new policy.
7. Bank of Jamaica: Releasing Jam-Dex CBDC in April
The goal is to encourage mass adoption of the country’s new central bank digital currency (CBDC). The first 100,000 Jamaican individuals who use the CBDC, known as Jam-Dex, would get a $16 payment for free.
The news was originally revealed on Thursday by Jamaican Prime Minister Andrew Holness in his Facebook post. Some Facebook users congratulated Holness for welcoming new digital technology.
On the other hand, some users showed fear about the Jamaican government’s ambitions. They accused Holness of attempting to sweet talk individuals into the federal banking system.
8. Singapore’s Tax Policies Will Affect NFTs; Here’s How
Singapore is persisting in being one of the most crypto-friendly countries at present. Lawrence Wong, Singapore’s finance minister, has said that prevailing income tax rules will apply to NFT transactions.
While income tax will be deducted for traded NFTs, the country is not applying a capital gains tax on the asset class.
NFTs are becoming largely popular in the South East Asian country. Singapore is witnessing a growing number of its artists finding new income streams from NFTs according to a survey by Milieu Insight and reported by Vulcan Post.
Since last year, Singapore has been making significant strides to becoming a global crypto hub. It has introduced timely policies to ensure that the industry thrives safely.
9. Crypto education can bring financial empowerment to Latin Americans
Crypto education could be key to promoting financial empowerment and increasing mass adoption across Latin America — if we do it right.
In October 2021, it was estimated that approximately 15% of the world’s supply of Bitcoin (BTC) was in circulation in Latin America. According to a recent report released by Crypto Literacy, however, 99% of Brazilian and Mexican respondents failed a basic assessment on crypto literacy. Crypto adoption is well underway across the region — on the rise even — but, people still lack a basic understanding of its underlying technology and use cases.
Crypto has the potential to change the world and those who understand it best will be at a huge advantage.
So, how can we help Latin America’s most underserved populations access this life-changing technology? Education.
Education has the potential to address three key obstacles preventing mainstream crypto adoption: financial literacy, trust and safety.
10. EBay Teases 'Digital Wallet' in Investor Presentation as Crypto Rumors Swirl
CEO Jamie Iannone recently said eBay is studying crypto as a form of payment.
EBay already allows for the sale of non-fungible tokens (NFT) on its platform.
11. Thailand Approves Tax Relief Measures for Crypto Trading
Thailand’s Cabinet approved new tax relief rules for crypto trading, according to an announcement on the Thai government website.
Finance Minister Arkhom Termpittayapaisith and Deputy Minister of Finance Santi Prompat jointly disclosed the outcome of the meeting, confirming that the cabinet has approved the crypto tax relief measures.
The finance minister told a news conference that traders will be able to offset annual losses against gains for taxes due on crypto investments. Value-added tax (VAT) of 7% will also be exempt for transfers of cryptocurrencies or digital tokens on regulated crypto exchanges.
He added that the tax exemption, effective from April 2022 to December 2023, will also cover the trading of retail central bank digital currency (CBDC) to be issued by the Thai central bank, the Bank of Thailand.
