Other cryptocurrencies including Polkadot and Dogecoin also declined. However, Ether was surging in anticipation of a groundbreaking software upgrade to its blockchain.
Here’s a weekly roundup of all the noteworthy stories from the crypto space:
1. Meta rolls out NFT feature on Instagram and Facebook
Users of Instagram and Facebook can now display their NFTs on the platform, according to a recent announcement from Meta.
This comes after a Meta update at the beginning of August that said they were extending the 100 nations in Africa, Asia-Pacific, the Middle East, and the Americas that are a part of their Instagram NFT project.
Adding to that, the social media giant turned metaverse proponent, announced on Monday that users will be able to upload digital collectable assets by connecting their NFT wallets to either Facebook or Instagram.
2. California State Assembly passes Crypto Regulation Bill awaiting Governor Approval
A newly approved law that will require digital asset exchanges and other crypto businesses to seek a licence to operate in the state is expected to be signed by California Governor Gavin Newsom.
The Digital Financial Assets Law, also known as California’s “BitLicense,” is modelled after the 2015-implemented BitLicense law in New York. If Democratic Governor Gavin Newsom signs it, California’s law would take effect in January 2025.
“While the newness of cryptocurrency is part of what makes investing exciting, it also makes it riskier for consumers because cryptocurrency businesses are not adequately regulated and do not have to follow many of the same rules that apply to everyone else,” Assembly Member Timothy Grayson (D-Concord), the bill’s sponsor, said in a prior statement.
One of the conditions is a restriction on stablecoin dealing by California-licensed companies until 2028 unless the stablecoin is issued by a bank or has a licence from the California Department of Financial Protection and Innovation.
3. Crypto.com accidently sent an Australian woman Rs 56 crore instead of a Rs 5,400 refund
When processing a $100 AUD (5400 INR) refund, the cryptocurrency trading company Crypto.com accidentally transferred $10.5 AUD (56 crore INR) to an Australian woman’s account and shockingly the mistake was not discovered for seven months.
In February, the company was granted permission to freeze Manivel’s Commonwealth Bank account after filing a lawsuit in the Victorian supreme court. However, most of the money had already been moved to other accounts, which were subsequently frozen.
The money, according to the evidence shown in court, was used to purchase a four-bedroom house in Craigieburn, in Melbourne’s north, for 1.35 million Australian dollars in February. After that, ownership of the property was transferred into the name of Manivel’s Malaysian-based sister, Thilagavathy Gangadory. Gangadory didn’t respond to communications from Crypto.com’s solicitors, thus efforts to serve her with the freezing orders were fruitless to date.
4. Large ETH traders position for volatility spike as Ethereum 2.0 Merge draws near
Some people view placing directional bets on an asset’s price, whether they are hedged or unhedged, as the most thrilling trading technique in the financial markets. The upcoming upgrade of Ethereum, the parent blockchain of the cryptocurrency, known as the Merge, has traders of ether (ETH) doing just that.
Large whales appear to be using the long strangle options trading method, which ignores the direction in which the cryptocurrency moves and instead seeks to profit from the level of price volatility.
In anticipation of the upcoming merge on Sept 15, Ethereum miners have been adding to their positions since May 2021 which is four years high. This shows an extremely strong conviction of Ethereum miners since they are adding to their balance through mining despite near-all-time low revenues in fees.
According to Griffin Ardern, a volatility trader at the crypto asset management company Blofin, “Block traders have also started speculating on a volatility surge in ether,” pointing to significant strangle trades that went through the books on a major crypto options exchange Deribit
5. Indonesia plans to create a ‘Crypto-Stock Exchange’ by 2022
According to a senior executive on Wednesday, August 31, the Indonesian government plans to open a “cryptocurrency stock “exchange by the end of 2022 as part of steps to safeguard consumers despite growing interest in digital currencies.
The authorities had originally planned to open the bourse “Crypto Stock Exchange” in 2021. “We will make sure that every requirement, procedure, and the necessary steps have been taken,” said Indonesia’s deputy trade minister Jerry Sambuaga, noting that the delay cannot be attributed to any significant problem.
6. OpenSea witnessed a jaw dropping 99% decline in daily volumes.
The hype of the NFT Bubble bursting became a reality. With trade volume on OpenSea, touted as the world’s largest non-fungible token (NFT) marketplace, gone down 99% in just under four months, what was once a raging market driven by FOMO during the crypto bull market of 2021 is now barely a trickle.
Data gathered by DappRadar shows that while OpenSea handled a record $2.7 billion in NFT transactions on May 1, the marketplace only saw $9.34 million worth on Sunday. On Sunday, the business had 24,020 users, which is nearly a third lower than in May, when it reached its peak number of transactions.
7. Japan is set to review existing corporate crypto tax in an effort to entice startups looking for tax breaks
Japan may reassess its current corporate cryptocurrency tax rates to keep companies in the nation. Japanese diplomat Taira Masaaki confirmed the tax review on Twitter.
A tax reform proposal for 2023 is being considered by the financial services agency (FSA), and the ministry of economy, trade, and industry of Japan could exempt cryptocurrency firms that create their tokens from paying taxes on unrealized gains.
According to Yomiuri, the company’s assets are taxed depending on the market value at the end of the taxation period, which means startups that issue their own tokens must pay taxes on unrealized gains for any tokens they may be hanging onto. The possible tax cut aims to motivate entrepreneurs to stay in Japan.
(Shivam Thakral is the CEO of BuyUCoin)