As global regulators continue to scrutinize the cryptocurrency industry, Tesla CEO Elon Musk has expressed support for crypto, calling it indestructible.
“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk said at the Code Conference in California, CNBC reported Tuesday.
According to the Tesla CEO, the decentralized nature of cryptocurrencies may be a challenge for the Chinese government, which announced a new war on crypto last Friday.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk noted, adding, “They don’t like that.” He also suggested that the latest Chinese crackdown on crypto is likely to have something to do with the country’s “significant electricity generation issues.”
“Part of it may actually be due to electricity shortages in many parts of China. A lot of South China right now is having random power outages because the power demand is higher than expected […] Crypto mining might be playing a role in that,” he said.
Despite Musk not considering himself as a “massive cryptocurrency expert,” the tech mogul stressed regulators should not be trying to slow down cryptocurrency adoption. When asked whether the United States government should be involved in regulating crypto, Musk responded:
“I would say, ‘Do nothing.’
Musk has emerged as a significant crypto price influencer on Twitter, with many experts linking his posts to massive price movements for tokens such as Shiba Inu (SHIB), Dogecoin (DOGE), as well as Bitcoin (BTC). The Tesla CEO was widely criticized in the crypto community after suspending Tesla’s BTC payments option over presumed environmental concerns about Bitcoin mining in May 2021.
Musk previously caused massive optimism on the crypto market by announcing a $1.5-billion Bitcoin purchase in February.
Fidelity to Launch Spot Bitcoin ETF This Week
Fidelity is aiming to launch its first spot Bitcoin ETF
Fidelity, an American multinational financial services corporation, is set to launch its first spot Bitcoin ETF in Canada this week, according to Bloomberg senior ETF analysts.
Fidelity is a multinational financial services corporation that was established in 1946, and it remains one of the largest asset management companies in the world with $4.9 trillion AUM with a total AVN of $8.3 trillion.
SEMI-SHOCK: Fidelity launching a spot bitcoin ETF in Canada this week. Didn't know about this. Will easily be the biggest asset manager to date with a bitcoin ETF. pic.twitter.com/H2XJRBY3O6— Eric Balchunas (@EricBalchunas) November 30, 2021
According to Bloomberg analysts, the fund with FBTC CN is currently pending listing on the Canadian exchange and will be trading under the name Fidelity Advantage Bitcoin. Balchunas also notes that the new fund might possibly become the biggest asset management company that includes Bitcoin products.
Spot ETF as main advantage
While futures-backed Bitcoin ETFs are not something new for the market, the physically-backed exchange-traded fund would actually be a more convenient solution for Canadian investors who are willing to receive exposure to the cryptocurrency market and Bitcoin specifically.
Compared to futures-backed funds, physical settlement Bitcoin products allow investors to receive direct exposure to the cryptocurrency market without facing high roll costs. Since Bitcoin-tracking funds utilize short-term one-month futures, they have to renew their contracts every month, which puts investors in an unfavorable position.
Due to funds operating with large volumes, the futures market faces significant buying power that puts futures contracts prices higher than the actual underlying asset. Such a market condition is called contango bleed when investors have to overpay for opening new positions on the market, which puts them at around a 20% annual loss.
Former PayPal CEO’s Cryptocurrency Exchange Goes Live for Institutional Clients
“Bullish” exchange backed by PayPal co-founder is set to launch for institutional investors.
The cryptocurrency exchange backed by Peter Thiel and Richard Li began operating for a batch of institutional investors on Tuesday. The start for institutional investors is only the first step before the full launch for private investors and traders.
The Bullish Exchange will offer Bitcoin, Ether and EOS tokens for trading against USD coins. With further development and expansion in the future, the exchange will broaden its digital assets offering for both institutional and retail investors.
Among the exchange’s first clients are firms like Virtu Financial (non-U.S. affiliate) and Hong Kong-based crypto finance firm Amber Group. The first company is an electronic market-making firm that is based in New York.
The new exchange, which is also backed by hedge fund managers Alan Howard and Louis Bacon, was established earlier in 2021. The exchange has numerous distinctive features that come from the world of decentralized finance, including automated market making, lending tools and portfolio management mechanisms that will help traders to properly handle their funds.
The chairman of Bullish exchange presented his product like a tool designed for investors who are looking for secure and efficient exposure to the digital assets market on a platform that will ensure funds safety from both the technical and legal sides.
The exchange will initially use its own assets to add more liquidity to pools that would be used by automated lending and market-making mechanisms. The backend of Bullish exchange is powered by EOSIO—open-source blockchain software developed by Block.one.
Plans for the future
Bullish exchange is planning to further broaden its offering by going public on the New York Stock Exchange by merging with SPAC company Far Peak Acquisition Crop. The transaction between the two companies will set the exchange’s value at approximately $9 billion.
‘New Blow’ as Large Crypto Exchanges Are Told to Pay British Tech Tax
Crypto exchanges operating in the United Kingdom â€“ including the likes of Coinbase â€“ will be forced to pay a recently created tech tax â€“ with the British tax body, HM Revenue and Customs (HMRC), declaring that cryptoassets â€œare not financial instruments.â€
The British Treasury last year announced the launch of a new 2% sales charge on online vendors, search engines and social media providers with global revenue of over USD 666.4m and domestic sales above the USD 33.3m mark.
Per the Telegraph, the tax office has informed crypto exchanges that they are subject to the levy, which was created in a bid to make sure the likes of Google and Amazon â€“ who have been criticized for finding tax workarounds in the UK â€“ contribute more to the Treasuryâ€™s coffers.
The same media outlet noted that although Coinbaseâ€™s UK operations had reported sales worth just under USD 24m, â€œthe company recently reported that global revenues had quadrupled, meaning it is likely to pass the UK threshold in 2021.â€
However, the tax may be short-lived, at least in its current form: earlier this year, the G20 agreed to create a streamlined tax essentially aimed at global tax giants. The measure will force some of the world’s biggest companies to cough up some USD 150bn in extra tax revenue each year.
Last month, the BBC reported that G20 chiefs had agreed to create a global minimum tax rate of 15% for large companies, and would enforce the measure starting in 2023.
In the meantime, however, the British â€œtech taxâ€ is still in place â€“ and Coinbase is likely to have to pay it.
HMRCâ€™s ruling that cryptoassets â€œare not financial instrumentsâ€ is key. Financial providers are exempt from the tax, but the tax bodyâ€™s insistence that tokens â€œdo not qualify as commodities or moneyâ€ means that crypto trading platforms cannot slip through the net.
The same media outlet quoted the crypto pressure group CryptoUK as claiming that it was â€œunfairâ€ to classify crypto â€œdifferently to other financial assetsâ€ â€“ particularly as the UK tax bodyâ€™s American counterparts largely consider coins to be commodities.
CryptoUK director Ian Taylor was quoted as calling the move â€œa new blowâ€ to crypto exchanges, who were already reeling from â€œarduousâ€ licensing measures announced by the regulatory Financial Conduct Authority â€“ ultimately leading to higher fees for exchange customers.