After struggling to continue with the positive growth of late March, the cryptocurrency market steadily declined throughout early April. However, with both Bitcoin and Ethereum enjoying a significant recovery, the market is now back up by around 4% since earlier in the week.
Much of the recent crypto news has been focused on the increasingly strict regulations in India, hackers in North Korea, and the trading app Robinhood's expansion into UK markets. In other news, Australia looks set to launch its first Bitcoin ETF and Coinbase has launched a beta version of its NFT marketplace.
TOP NEWS
Australia's First Bitcoin ETF to Launch Next Week
Australia's first Bitcoin ETF is expected to launch next week on the Australian Securities Exchange (ASX) after meeting stringent requirements set out by the ASX clearinghouse. The firm that established the new product, Cosmos Asset Management, built the ETF on top of the existing Canadian Purpose ETF that began trading early last year.
Unlike a futures ETF, the Cosmos Bitcoin is a spot ETF that will allow investors to buy physical BTC rather than invest in a derivative product that simply tracks the BTC price. It has been given tentative approval following the agreement by four clearing firms to provide the 42% margin required by the ASX.
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Australia’s first bitcoin ETF is likely to be listed next week.
— CoinDesk (@CoinDesk) April 19, 2022
By @oknightcryptohttps://t.co/QWdGJ7wKy4
Indian Crypto Exchange WazirX Moving to Dubai
India's largest crypto exchange, WazirX, could move its headquarters to Dubai amidst reports of stifling restrictions from the Indian government. According to multiple sources, co-founders Nischal Shetty and Siddharth Menon have already based themselves in Dubai although the company maintains offices in Mumbai and Bengaluru.
The Indian government's recent imposition of a 30 percent tax on virtual assets is just one of many acts that have caused a 90% drop in crypto trading volume on WazirX since this time last year. Coinbase is another company affected by the government's actions after the local payments interface UPI halted all rupee transfers to the platform.
Major U.S. Trading Platform Robinhood Buys UK Crypto Firm
Arguably the world's most popular mobile trading platform, Robinhood, has purchased a UK-based crypto and payments startup known as Ziglu. The new acquisition is the first sign that Robinhood plans to further expand its operations not only globally, but also into the crypto sector.
The Californian company made headlines last year when the Reddit group WallStreetBets used it to pump GameStop stock in an attempt to liquidate Wall Street investors. The purchase of Ziglu is Robinhood's second attempt to expand into the UK and will allow the company to offer cryptocurrency trading and international remittance services to UK customers.
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Robinhood revives plans to launch in the UK with deal to buy crypto app Ziglu https://t.co/ZAz4mc88yx
— CNBC (@CNBC) April 19, 2022
US Government Warns of Cyberattacks from North Korea’s Lazarus Group
Reports are spreading of a joint statement issued by the Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and the US Treasury advising cryptocurrency platforms to be aware of cyberattacks from a North Korean hacking group known as Lazarus.
The group allegedly uses malicious apps to propagate the spread of malware, which then exploits gaps in network security to steal the private keys of crypto wallets. Some crypto company employees have even been tricked into downloading apps with the offer of high-paying jobs.
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India's Crackdown on Crypto
India is once again in the news following a new proposition by MP Sushil Kumar Modi to increase taxes on cryptocurrencies to 50%. Cryptocurrency taxes in India were already raised to 30% on 1 April this year, one of the highest crypto tax rates in the world. Now, MP Modi says the government should raise taxes even further for reasons which he claims are to protect Indian investors.
"We need to discourage and dis-incentivize" trading and investing in the asset class", he stated in an interview with Forkast. “The government wants to make life hell for those people who are investing in cryptos. That is the bottom line. That is the main thrust of the entire tax.”
However, those familiar with the situation believe the government may be taking advantage of the gains made by crypto investors in an attempt to pay off its own rising fiscal deficit. Despite ongoing calls from the Reserve Bank of India (RBI) to ban cryptocurrencies, the government has allowed crypto trading to continue - so long as it can reap the rewards in taxes. To benefit even further from the industry, Modi wants to impose a further 28% goods and service tax (GST) on the entire crypto ecosystem in India. This would place crypto in the same basket as gambling, rather than treat it as a commodity or asset like most countries do.
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More fallout from India’s crypto tax.
— Cointelegraph (@Cointelegraph) April 20, 2022
Increased difficulties since its implementation has forced crypto platforms in the country to consider moving to more favorable jurisdictions, with Dubai a primary choice.
(Reporting via @_prashantjha) https://t.co/NRwO6meSJI
Unfortunately, the ones who will really suffer are the poorest amongst the Indian population, many of whom rely on cryptocurrencies to conduct low-cost international remittance. Hundreds of thousands of Indians work abroad to provide for their families back home but around 20% of their income to unnecessarily high foreign exchange fees. The high tax rates are already pushing India's largest crypto exchange, WazirX, abroad. Founders Nischal Shetty and Siddharth Menon have recently relocated to Dubai, fueling speculation that WazirX will eventually move its headquarters there.
That's all for this fortnight in crypto. Enjoying keeping up to date? Why not share this article with a friend?
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