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Crypto Regulations Instead of a Ban in India by February 2022: Report

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As a result of the upcoming cryptocurrency regulations, India might accept bitcoin and the altcoins as an asset class.

The Indian government will reportedly implement a regulatory framework for operating with cryptocurrencies by February next year. Instead of a complete ban, this time, the authorities will debate whether to accept bitcoin and the altcoins as an asset class.

India’s U-Turn

The world’s second most populated nation is one of the fastest-growing markets for cryptocurrencies. However, the Indian government (with its controversial approach towards the matter) causes confusion on how locals can operate with digital assets.

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Earlier in the year, the authorities planned to impose a total ban similar to the one in China and even criminalize the ownership and mining of cryptocurrencies.

The government started softening its stance ин the next few months, and the upcoming regulations might not be so harsh. According to a recent report, the legal framework on bitcoin and the altcoins will see the light of day by February 2022 to clarify the taxation of transactions and gains. Surprisingly, the authorities will even discuss the option of accepting cryptocurrencies as an asset class.

A spokesman at the Finance Ministry explained that enforcing certain laws on the industry is vital because the popularity of the digital assets in India attracts bad actors who could employ them in dubious activities. New rules could enable the authorities to stay on top of such operations:

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“What should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! Everybody has actually bought that currency by using other assets. The government needs to look at regulation in order to avoid the above.”

Listening to The Experts

If India decides to treat crypto as an asset class, the move could boost the country’s economy. At least, that is what the Indian billionaire Nandan Nilekani said a few months ago.

The entrepreneur agreed with many critics that digital assets are not suitable to be used as a payment method as their fiat currency value is quite volatile and some of them consume too much energy. He instead opined that investors should consider them as a gold substitute, for example:

“Just like you have some of your assets in gold or real estate, you can have some of your assets in crypto. I think there’s a role for crypto as a stored value but certainly not in a transactional sense.”

The interest in cryptocurrencies has indeed skyrocketed in India lately as locals increased their digital assets investments from $200 million last year to $40 billion this year.

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The new German government takes a pro-crypto stand in the coalition agreement

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  • The European Financial Sector aims for holistic and risk-adequate supervision of the crypto business models.
  •  The newly elected German government said that innovation doesn’t come at the cost of affecting the stability of the traditional financial market.

The new German government has decided to take a pro-crypto stand in its coalition, a move that seeks to create a level playing field between “innovative business models” and traditional finance. The three German parties, who are looking to take the reins from December this year, have agreed to the coalition deal this week.

These three parties include left-leaning Social Democrats (SDP), the right-friendly Free Democrats (FDP), and the Green Party. The 177-page agreement published earlier this week on Wednesday, November 24, notes that the coalition seeks a new “dynamic in relation to the opportunities and risks from new financial innovations”. This includes blockchain businesses and crypto-assets. The agreement further adds:

We are making European financial market supervisory law fit for digitization and for complex group structures in order to ensure holistic and risk-adequate supervision of new business models, We need joint European supervision for the crypto sector. We oblige crypto asset service providers to consistently identify the beneficial owners.

The document also adds that the EU supervisory authority should take care of the traditional financial sector and simultaneously assure that there’s no misuse of cryptocurrencies for illicit activities like money laundering and terror financing.

An accommodative stand to crypto

As we are seeing, political parties and governments institutions are developing an accommodative stand for cryptocurrencies. Crypto has also turned into a new battleground for politicians to sway voters.

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Apart from Germany, the European Council has initiated pro-crypto measures. It has added two more proposals namely the ‘Regulation on Markets in Crypto Assets (MiCA) framework and the ‘Digital Operational Resilience Act’ (DORA).     

The European Commission had initially drafted MICA for the first time last September 2020. It also seeks to create a regulatory framework for cryptocurrencies. The framework takes into account the potential of crypto-assets and supports innovation in the space.

If the framework gets approval from the European Parliament, then crypto assets issuers will have to face more stringent regulatory norms. However, utility tokens and non-fungible tokens (NFTs) will still fall outside the scope of regulation.

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A Reddit post from “BelgianPolictics” referred to this progressive regulatory proposal as the “most important one to date for the entire crypto industry”. The handle further added:

These rules will have to be followed by every entity operating in the European Union. However, because of the ‘Brussels Effect,’ there is a very good chance these rules will become international standards in the end. While everyone is focused on the US and China, the EU is casually leading the way.

It will be interesting to see how the EU approaches crypto regulations going ahead. For now, the wind seems to be turning in favor of crypto investors.

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Crypto Market Down $200B as Wall Street Futures Tumble on Renewed COVID-19 Concerns

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Bitcoin saw a six-week low beneath $55,000, most altcoins plummeted even more, and Wall Street futures contracts are down as well on new COVID-19 fears.

The new COVID-19 variant coming from South Africa has brought more pain to all financial markets. As the futures contracts of the world’s most prominent stock indexes have slumped, the cryptocurrency space experienced a massive correction. Bitcoin dumped to a six-week low, while some altcoins saw double-digit price drops.

Bitcoin and Global Markets Tumble

The primary cryptocurrency was on its way towards $60,000 yesterday after recovering from the previous drop below $56,000. It came roughly $500 away from challenging that coveted level, but it failed, and the landscape changed vigorously hours later.

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Bitcoin dumped by $5,000 in a few hours to an intraday low of $54,300, which became the lowest price point since October 13th. As reported earlier, this enhanced volatility caused mass pain for leveraged traders as the liquidations skyrocketed to over $700 million on a daily scale.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

This price crash coincides with similar developments in the global stock markets. Prompted by fears of a new COVID-19 variant coming from some African nations, the futures contracts of Dow Jones, the S&P 500, Nasdaq, and other popular indexes plummeted.

The Dow’s futures are down by more than 2%, those for the S&P 500 by nearly 1.7%, while oil prices dropped even harder. US crude oil futures declined by over 5.5%.

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There Are Now 1 Million Shiba Inu Holders, Despite SHIB’s 50% Monthly Drop

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The popular memecoin project Shiba Inu has reached a massive milestone of over one million token holders.

Despite the recent turbulence and decline in demand in comparison to just a few months ago, Shiba Inu’s user base has grown to one million wallets. Shortly after the team outlined the news, the native token surged by double digits, but it has retraced once more.

  • Aside from NFTs and DeFi, 2021 will go down in history as the year of the memecoin with the massive popularity and price surge of Dogecoin and the subsequent emergence of countless copycats.
  • One of those copycats, which actually saw the light of day last year, actually managed to steal the spotlight in Q3 – Shiba Inu.
  • The self-proclaimed DOGE killer skyrocketed in price and charted an all-time high of $0.000086, which made it the most successful investment of the year with an ROI of 100,000,000%.
  • At one point, it even surpassed Dogecoin in terms of market capitalization, and all of this undoubtedly attracted new users coming with the promise of quick gains.
  • The adoption curve intensified in the following few months and the project updated yesterday of reaching a massive milestone – one million SHIB holders.
  • While this is a long way away from arguably the most adopted and popular cryptocurrency – Bitcoin – with its nearly 39 million active addresses, it’s still a substantial achievement, given the fact that very few people had heard of Shiba Inu (not the dog) a year ago today.
  • Shortly after the team announced the news on Twitter, the price of SHIB surged from a daily low of $0.000039 to a high of $0.000048. Nevertheless, the token, similarly to most of the market now, has retraced and currently sits around $0.00004.
  • This one million milestone comes at an intriguing time, in which the demand for the memecoin seems to be fading. As reported earlier this week, the number of Google searches has slumped as the price is more than 50% down from the ATH charted last month.
SHIB/USD. Source: TradingView
SHIB/USD. Source: TradingView

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