Welcome to Barmy’s Daily Crypto News – November 21th, 2022
1. CZ talks about Indian Crypto Environment
Changpeng Zhao (CZ), the CEO of cryptocurrency exchange Binance, does not currently consider India to be a viable location in which to develop his crypto exchange operations.
The crypto tax scheme that the Indian government enacted earlier this year has especially demoralized Zhao. Cryptocurrency transactions are subject to a 1% tax deduction at the source in addition to crypto income being taxed at 30%. (TDS).
Binance travels to nations with pro-crypto and pro-business legislation. They avoid traveling to nations where they won’t be able to operate a profitable business, whether they go or not.
Other international cryptocurrency exchanges, such as Coinbase, which is listed on Nasdaq, have attempted to open in India. In April, the exchange attempted to open in India, but operations were quickly suspended. In May, Brian Armstrong, CEO of Coinbase, said that the Reserve Bank of India had put “informal pressure” on the company to stop supporting the UPI local payments system.
Although bitcoin transactions and income are taxed, India currently lacks a regulatory framework. Cryptocurrency regulation would be one of the issues of focus during India’s G20 presidency, according to Nirmala Sitharaman, the Indian finance minister. After discussing it with other G20 nations, the administration intends to create a tech-driven regulatory framework for cryptocurrencies.
2. Funds stolen from the FTX exchange are now being converted from ETH into Bitcoin
Chainalysis, a company that conducts blockchain analyses, claims that money taken from the FTX cryptocurrency exchange is currently being changed from ETH into Bitcoin. In the midst of the contentious demise and bankruptcy of FTX, word spread that 228,523 ETH had been stolen by an unidentified perpetrator. The owner of these coins, which at the time of publication were valued a staggering $268,057,479 USD, is currently one of the biggest ETH holders in the entire globe.
It is untrue that the money taken from FTX was actually sent to the Bahamas Securities Commission. While some money was stolen, other money was sent to the regulators.
Approximately 31,000 ETH have been converted into wrapped BTC as of the time of writing. The total amount received by the burglar after sending the coins crosschain to a Bitcoin mainnet wallet using the Ren Protocol was 2444.55 BTC. A news release from earlier today said that FTX debtors are in discussions with financial services company Perella Weinberg Partners about possible reorganization efforts.
Sam Bankman-Fried, the company’s founder, is reportedly still “under supervision” in the Bahamas, however others worry that if given the chance, he would try to flee to Dubai. Given that the UAE and the USA have a deal on evidence sharing, judicial collaboration, and help in criminal investigations and prosecutions, it is unknown how this situation would ultimately turn out.
3. Binance Dominates the Altcoin’s Trade Volumes
SNM was suddenly up 20x on Binance today. Its main website hasn’t been updated in a while. Despite the fact that Binance is the only place to trade the coin, Binance did not delist it.
SNM, an altcoin, increased by more than 4,000% to $6.70 on November 20, 5:30 a.m., setting a new all-time high. It had last traded above one dollar on April 30, 2021. (ET). SNM’s trade volumes increased from just over $1.2 million on Nov. 19, at 04:02 a.m., to over $720 million by 8:00 p.m., according to data from coingecko.com, in less than 24 hours (ET).
This token started with an initial coin offering (ICO) price of $0.16 in 2017, had only ever been sold above $0.50 on three times, on August 26 ($0.503), September 12 ($0.707), and September 12 ($0.517), before to the recent spike in altcoin prices and traded volumes. The data also reveals that trade volumes increased at the same times.
4. Ripple would be interested in companies owned by FTX that serve business customers
Brad Garlinghouse, the CEO of Ripple, is apparently interested in purchasing some assets from the defunct FTX cryptocurrency exchange.
He admitted to The Sunday Times that former FTX CEO Sam Bankman-Fried called him in an effort to find investors to save the company two days before it filed for bankruptcy. The two talked about if there were any FTX-owned companies that Ripple “would want to own” during the discussion, according to the company’s CEO.
“If he needs money, there may be businesses he has purchased or that he owns that we would like to own,” I said during our conversation. Have we purchased some of those from him? That was undoubtedly on the table, he asserted.
Garlinghouse acknowledges that a potential purchase for an FTX business will be “quite different than it would have been one-to-one” now that FTX has filed for Chapter 11 bankruptcy in the United States.
The bankruptcy case in Delaware includes about 130 FTX-related businesses, including FTX.US. Garlinghouse stated that he would be interested in purchasing the components used by commercial customers.
5. South Korea launched a probe into crypto exchanges in relation to listing native tokens
The Korea Financial Intelligence Unit (KoFIU), the country’s financial watchdog, has opened an investigation into cryptocurrency exchanges for offering their own, internally-issued tokens.
While it is illegal for Korean cryptocurrency exchanges to issue native tokens, the KoFIU is looking into the issue to make sure that regulations are followed for the safety of investors, according to a local article.
Initial examinations showed that all cryptocurrency exchanges in South Korea operated legally. Although “there are still some questions linked” to in-house token listings, a Financial Services Commission (FSC) representative disclosed intentions for a more thorough study.
According to local media outlet Yonhap, Flata Exchange is one of the main suspects and is under investigation for listing its own coin, FLAT, back in January 2020. Authorities have cleared major exchanges like Upbit and Bithumb, therefore the investigations will be more concentrated on smaller exchanges.
South Korea is at the top of the list of nations that were most negatively impacted by the collapse of FTX, with 297,229 unique South Korean users visiting FTX.com on a monthly average.
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