Crypto News

Cryptocurrency News Weekly Roundup 05/23/2022

  • Despite China’s ban on crypto mining, it remains the leader in hash rate
  • Portugal enacts regulations introducing a capital gains tax cryptocurrencies
  • Japanese bank Nomura is launching a crypto subsidiary later this year
  • Russia’s trade minister insists crypto legalization is not a question of if, but when
  • Shopify merchants can now integrate Crypto.com Pay for payments into their storefronts

This is what awaits you in this article

Report: China is lagging behind Bitcoin mining despite the ban in the middle of last year, only behind the USA

Crypto mining, in particular Bitcoin, is and is expected to continue to be an environmental concern because it uses a proof-of-work consensus model that is inherently energy-intensive. Last year, China banned all cryptocurrency mining in the country over massive electricity consumption, before issuing a blanket ban on crypto activity later in the year.

New data released a year later by the Cambridge Center for Alternative Finance (CCAF) suggests that China’s crypto ban has not yet had its full effect. Data shows that China lagged behind the US in bitcoin mining activity only last December (current figures). It recorded 21% of the total Bitcoin hash rate, while the US led the way with 37.84% of the global hash rate.

To think that China is back on the charts after its hash rate dropped to 0% between July and August last year would only be due to covert crypto mining activity. The CCAF explained that such miners would likely run small operations and source off-grid power to circumvent China’s strict anti-crypto stance.

Kazakhstan, Canada, and Russia complete the top 5 with 13.22%, 6.48%, and 4.66% hash rate, respectively.

Airdrop from VNSMART Cryptocurrency News Weekly Roundup 05/23/2022, Crypto Trading News

Therefore, Portugal’s status as a “crypto tax haven” may soon be over

Portugal is known in the community for its tax-free crypto environment, a factor driving the development of the crypto and Blockchain-Technology in the country has supported. However, this could change soon. Local news outlet Sapo recently reported that a crypto tax could be introduced soon.

The news agency noted that Finance Minister Fernando Medina said in a working session last Friday that the government intends to introduce new regulation, one of whose implications would be the introduction of a capital gains tax on cryptocurrencies. Notably, the lack of taxation of crypto profits was not established by law, but was the result of a regulatory loophole.

Dubbed the “Bitcoin Haven,” Portugal has become popular with crypto traders who enjoy the lack of taxes on their operations. Even with the upcoming change, information on details such as the rate to be enforced remains unknown; Therefore, it might be too early to predict a massive migration.

The Finance Minister’s comments were echoed by António Mendonça Mendes, Secretary of State for Tax Affairs. He proposed introducing a VAT and stamp duty on cryptocurrencies.

Japanese bank Nomura is reportedly launching a crypto division later this year

Nomura is on track to launch a crypto subsidiary, according to a release from financial times sent last Monday. With plans to launch the crypto unit later this year, the bank would allow customers to interact with products centered around crypto, non-fungible tokens (NFTs), to enable stablecoins and decentralized finance.

According to people familiar with the matter, the unit would be fully under the bank and expected to have about 100 employees by 2024. The Japanese mammoth bank intends to expand the division so that it can compete with the banking giants that are already offering users digital assets.

Late last week, Nomura announced that it had completed its first over-the-counter trade in Bitcoin derivatives. According to a released statement, options and futures trading on Bitcoin was conducted in partnership with Cumberland DRW on futures exchange CME Group.

Intending to serve the increasing demand the bank is currently seeing, Rig Karkhanis, Head of Markets at Nomura, Asia ex-Japan, said the new product would allow it to serve interested institutional clients. The move joins Nomura among major world banks, including JPMorgan and Goldman Sachs, that have been engaged in offering clients exposure to cryptocurrencies through various products.

It’s a matter of when, not if, a Russian official says of crypto legalization

Industry and Trade Minister of Russia Denis Manturov has interfered in the cryptocurrency discussion. Manturov believes that legalizing cryptocurrencies for use in processing payments in the country is a matter of legalization when that will happen.”

Speech at the New Horizon educational event, local news outlet TASS reports that Manturov explained that this is the case now that both the government and the central bank are reading on the same page when it comes to crypto. In fact, he insists that legal crypto usage is coming sooner or later in one format or another.”

The change of heart reported by the Central Bank of Russia (CBR) happened only recently. Earlier this year, she had tabled proposals for a blanket ban on cryptocurrencies, citing several aspects including environmental and money laundering concerns.

Chairman of the State Duma Financial Markets Committee Anatoly Aksakov said at the Moscow Academic Economic Forum this week that Russia will allow Russian blockchains to offer DFAs — cryptocurrencies — by the end of the year.

Aksakov said DFAs would provide a solid alternative to the fiat standards like the USD or EUR for financial settlements.

Shopify merchants can now integrate Crypto.com Pay for free

Singapore-based cryptocurrency trading and exchange platform Crypto.com announced on Tuesday that all Shopify merchants can now add the Crypto.com Pay option to their stores. Both parties will benefit from this move.

Crypto.com will look to expand its reach, while Shopify can now serve a customer base that would rather pay for their goods and services with crypto.

The exchange said traders signing up for the new platform by June 30 would not pay any settlement fees for the first month. After that, they would pay a 0.5% fee share. According to Crypto.com CEO Kris Marszalek, the company aims to offer even more merchants and consumers the opportunity to use cryptocurrencies.

Merchants do not require any physical interaction to set up the new product. Once up and running, the systems will allow interaction with token blockchains including Bitcoin, EthereumShiba Inu, Dogecoin and its native CRO.

With the token slumping earlier this month, stakers’ earnings were bound to plummet, with those at the lowest tier seeing the worst of it – 0% rewards for staked tokens.

Source: Crypto News Deutsch

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