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Cryptocurrency Adoption

Bitcoin And Ethereum Find Shelter At Singapore Exchange

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The rate of crypto adoption is undoubtedly on an upward trajectory. With prominent companies exploring the prospects of cryptocurrencies, digital assets have found shelter at stock exchanges as well. While several stock exchanges have already listed popular cryptocurrencies like Bitcoin [BTC] as well as Ethereum [ETH], many stock exchanges from across the globe have been jumping the bandwagon.

The latest stock exchange to join the list is the Singapore Exchange [SGX]. On Tuesday, the Singapore-based exchange shared a press release announcing the same.

Singapore Exchange To Bolster Crypto Adoption

As per the release, the exchange intends to roll out crypto indices namely iEdge Bitcoin Index as well as iEdge Ethereum Index under the SGX iEdge index suite. This is touted as the first of its kind and is the result of the collaboration between the Singapore Exchange along with CryptoCompare, a United Kingdom-based crypto platform.

SGX is considered one of Asia’s biggest multi-asset exchanges. The platform’s latest move could further bring in institutional investors in increased numbers. The Head of Index Services at SGX, Simon Karaban pointed out that the world was traversing into digitalization and cryptocurrencies would be of great interest to many. Speaking about the partnership he added,

“We are excited about this collaboration with CryptoCompare to offer a suite of new indices for market participants in Asia, reinforcing our endeavor to innovate and meet market needs.”

The Commercial Director of CryptoCompare, James Harris also commented on the latest collaboration and revealed that the inclusion of transparency to digital asset class was the mission of the crypto platform. He further stated,

“We are delighted to work in partnership with SGX to offer greater global access to institutional-grade digital assets products on Asia’s leading multi-asset exchange.”

Singapore Exchange wasn’t the only one to extend its support to crypto assets. Prominent Vienna-based stock exchange, Wiener Börse also joined the list.

Wiener Börse Lists A Bitcoin Product

The platform, also known as Vienna Stock Exchange revealed that it had listed Bitcoin [BTC]  and Ethereum [ETH] ETPs from the 21 Shares AG. Listing these exchange-traded products, ABTC and AETH further made the Vienna Stock Exchange the one among the two other platforms to list a Bitcoin product.

As numerous exchanges across the world recognize the potentials of the crypto market, the rate of adoption could also witness a surge in the coming days.

Brazil’s Regulator Orders Binance to Stop Providing Crypto Derivatives

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Brazil ‘s financial regulator, the Securities and Exchange Commission, which is commonly known as CVM, has prohibited Binance ‘s giant trading platform from offering cryptocurrency derivatives in the country. According to the authority, derivatives are cryptos or underlying assets, which are considered to be securities.

As such, Binance is required to register with CVM in order to secure an operating license to offer crypto derivatives. The Binance Exchange Platform does not, however, hold such a license to operate as a securities intermediary in Brazil. Indeed, the regulator’s notice points to the growing interest of the investor in cryptocurrency derivatives.

Growing investor interest in the crypto derivatives market

Crypto derivatives allow investors to bet on the market value of cryptos without the need for an actual token. Caution also follows a period when the majority of vital cryptocurrency spots begin to focus on public crypto derivatives offerings on the market, such as BitMEX. For instance, Binance launched a trading margin functionality.

Crypto derivatives offered by Binance aim to form a market that imitates the traditional markets sub-structure. Binance primarily focuses on integrated investment products to drive cryptocurrency adoption in the form of crypto derivatives. As of now, Binance is yet to respond to the ban. Furthermore, the ban will directly impact traders who deal with crypto derivatives in Brazil. The order by CVM reads: 

“It remains evident that the company Binance Futures, through the webpage ‘www.binance.com,’ captures customers residing in Brazil with a public offering of derivative intermediation services…; the aforementioned company does not hold authorization from this Securities and Exchange Commission to act as a securities intermediary.” 

Brazilians not missing cryptocurrency trend

Brazil has off late been a hive of crypto activities in recent years. Brazilians are yet to miss crypto-related trends in the nation. Indeed, in the LATAM region Brazil was the top country in terms of both policing and innovation. In conclusion, Brazil’s journey towards crypto oversight took an additional step in 2019 after the lawmakers formed a commission to contemplate the subject. 

Indian Cryptocurrency Exchange CoinDCX Raises Millions in Latest Investment Round

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Bitcoin and the rest of the cryptocurrency market have tried their best to become mainstream after a decade of their inception. This growing financial sector has become so important that regions around the world have begun to rethink their applications.

India was one of the few countries vehemently opposed to cryptocurrencies. The ban on cryptocurrency has been so effective that digital asset companies have been brought to the ground while many have relocated. Following the recent withdrawal of the ban by the Supreme Court of India, the country has seen a dramatic increase in the number of crypto investors.

CoinDCX was one of the few Indian cryptocurrency exchanges that were ramping up efforts to expand Indian cryptocurrency space. According to new reports, the exchange raised more than $3 million from investors in its most recent funding round. CoinDCX claimed that the new space investors were excited to form an ecosystem of change, innovation, and rapid progress.

According to sources, CoinDCX raised more than $3 million from investors like Bain Capital Ventures, Polychain Capital and HDR Global Trading. HDR Global Trading sounds familiar because it is involved in operating cryptocurrency exchanges like the popular BitMEX.

The sudden surge in investments started right after the Indian Supreme Court adjudged that the 2018 ban on crypto was unjust. According to the premier court in the country, the RBI’s stance on digital assets would hamper growth and development in the country. Sumit Gupta, the CEO and Co-founder of CoinDCX stated:

“As the country’s largest exchange, we are in a position to drive national crypto adoption forward responsibly. This successful investment round will go a long way in funding our vision of accelerating India’s growth into a US$5 trillion economy. With a slew of exciting projects in the pipeline, the closure of our Series A is the first step in a new chapter in the CoinDCX story as we continue to drive the mass adoption of crypto assets in India.”

CoinDCX stated that it would use the capital to revamp its marketing aspects as well as boost its product developments. Sumit Gupta added that cryptocurrency as an asset was just about to take off in the country. India stands in the perfect position to leverage the current market and draw attention to the changes in the space, said Sumit Gupta. CoinDCX was one of three Indian cryptocurrency exchanges that remained open during the ban and it looks like it paid dividends.

The exchange will allow more users to get on board by buying cryptocurrencies with fiat. One of the USP’s of CoinDCX has been its algorithm-based trading that has enabled users to make seamless transactions. The good news was in complete contrast to the situation in 2018 when the industry crumbled in India after RBI’s decision. CoinDCX has also pledged $1.3 million for a campaign called ‘TryCrypto’. The aim of the program is to increase the number of crypto users in India to 50 million.

The CoinDCX development came right after Tim Draper made glowing comments about the Supreme Court’s decision. The serial investor admitted that he would be interested in contributing to some of the great projects in India and boost the cryptocurrency space.

Banking Closure in Venezuela Drives Bitcoin Trading Amid COVID-19 Pandemic

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Following the spread of coronavirus across the world, President Maduro has ordered national quarantine in Venezuela. Only 33 cases of COVID-19 were reported to have been confirmed in the South American nation. Irrespective of the number, the President decided on March 17 to put the whole country in quarantine.

The emergency action taken by President Maduro’s administration will prevent Venezuela’s health system from being flooded with the rapid spread of infection. In compliance with the decree, the banks in Venezuela have been closed for an indefinite period of time. However, even though this decision crippled the country’s banking system, it spurred bitcoin trading on peer-to-peer trading platforms.

Venezuelans not worried over banking closure

Venezuelans do not seem to be very concerned about the closure of the banking system. The country has been through severe economic conditions, and cash shortages are not a rare occurrence. The lack of technological infrastructure and dependence on the US dollar has already begun to push people away from traditional banking.

Venezuela’s informal economy is thriving through barter trade, gold, cash, and digital currencies are the latest addition. Peer-to-peer exchange platform, LocalBitcoins has endured its largest trading activity this year as a result of growing interest in digital currencies. At the end of February, the traded volume of bitcoin was at 491 BTC which has eventually hiked to 540 BTC. Additionally, the trades for bitcoin against the U.S. dollar stood at 479 BTC.

Moving forward, the economic impacts of COVID-19 appear to be triggering a massive adoption of digital currencies across South America. LocalBitcoins have increased by more than 30% in Peru and approximately 15% in Colombia over the last seven days.The last time we saw such figures was back in 2019 when the price of bitcoin escalated after a long period of crypto winter.

Peru
Columbia

Coronavirus threatens Venezuela’s Petro program

President Maduro vowed back in January to make Petro cryptocurrency a success. Biopago (Petro’s payment system) then temporarily suspended service delivery to the public. However, the President ordered all state services to be priced and paid for the use of petro cryptocurrency.

In fact, some Venezuelan crude oil buyers have stopped doing business with Venezuela. This is because the port officials of the South African nation began demanding port fees in the controversial Petro cryptocurrency.

The threat posed by the spread of COVID-19 pandemic appears to have thrown cold water on President Maduro’s endeavor to impel the adoption of petro cryptocurrency in Venezuela. The last major activity by the president to stir oil-backed Petro use was back in January. Then, Maduro launched Petro-powered casinos from which health and education programs will be funded. 

In addition, the announcement of the casinos came after President Maduro ordered the sale of airline fuel; for international flights to be sanctioned by the use of petro. Despite the government’s efforts to drive the adoption of petro in the country, the Venezuelans were not convinced by the idea of petro. A couple of weeks ago, Venezuelans sold the oil-backed petro digital currency at half the official set price of $60.

 

South Korea Pushes For More Cryptocurrency Adoption With New Taxation Laws

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 Cryptocurrency adoption has been on the rise in recent weeks and the countries of South Asia have been at the forefront. Reports have shown that developments in Asia have surpassed that in the US, with proponents betting on China and South Korea.

South Korea’s recently reported that it had taken significant steps to integrate cryptocurrencies into its economic systems after providing amendments to its economic framework. 

The country claimed that it would step up efforts for cryptocurrency taxation after the National Assembly passed a new revision. The amendment will be made to the Reporting and Using Specific Financial Transaction Information Act, with the aim of putting the cryptocurrency industry under government regulation.

Cryptocurrency companies will now be asked to take anti-money laundering measures and conduct their business on the basis of real-name accounts.

South Korea has stated that any exchange that does not comply with the stipulated rules will be banned from operating in that country If the registration is not carried out, the State has the right to sentence owners to up to five years in prison

Apart from jail time, cryptocurrency exchange heads may also be asked to pay 50 million Won or $42,000.  One of the other main agendas of the new revised law is to establish a solid playing ground for cryptocurrency taxation.

All details about the cryptocurrency taxation laws will be released in July. At the same time, the Korea Blockchain Association would survey market participants and deliver their findings to the tax authorities.

The government has also asked the officials heading the cryptocurrency companies to function on real-name accounts. Korea is one of the few countries that has seriously considered cryptocurrency as a legitimate form of transaction and the tax plan is seen as a first measure.

The country’s move towards cryptocurrency taxation stemmed from the Bithumb issue back in December 2019. Last year, the National Tax Service incited a massive controversy by filing an 80 billion won tax on Bithumb.

This led to multiple proponents of the cryptocurrency industry to believe that they were being treated unfairly. Bithumb had retaliated to the ban by stating that there were no legal provisions for crypto to be taxed in the country.

A member of the Korea Blockchain Association said that they will be holding a series of debates on cryptocurrency soon and that there will be input from multiple sectors of the decentralized industry. At the moment, there were only four exchanges that adhered to the rules proposed by the Blockchain Association. They were Upbit, Bithumb, Coinone, and Korbit.