Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
President Vladimir Putin Signs Crypto Law Recognizing Digital Assets As Property
Russian President Vladimir Putin signed a new law that officially recognizes digital currencies as property in foreign trade settlements under an experimental legal regime (ELR). Under the regulations, TASS reported that crypto mining and sales are not subject to value-added tax (VAT).
Furthermore, crypto transactions facilitated within the ELR are also tax-free. Yet, mining facility operators are required to report to the tax authorities who use their services. Those who fail to submit the information on time face a fine of 40,000 rubles.
Justin Sun Eats Banana Art He Bought For $6.2 Million
TRON founder Justin Sun fulfilled a promise he made after spending $6.2 million on an artwork featuring a banana duct-taped to a wall — by eating the fruit in front of dozens of journalists and influencers after giving a speech hailing the work as “iconic” and drew parallels between conceptual art and cryptocurrency.
“It’s much better than other bananas,” Sun said after getting his first taste.
Titled “Comedian,” the conceptual work created by Italian artist Maurizio Cattelan was sold at a Sotheby’s auction in New York last week. Sun was among seven bidders.
South Korea To Postpone Crypto Tax Until 2027
According to local media outlet Money Today, Democratic Party (DP) floor leader Park Chan-dae announced at a press conference that the DP has agreed to the government’s plan to postpone the tax on crypto traders for another two years, pushing back the bill intended for 2025 to 2027.
Park said the government needs “more institutional preparation” before regulators can systematically tax crypto traders.
Initially, the DP had opposed the People’s Power Party’s plans to postpone the launch, insisting that the 20% tax on crypto traders must be launched in January 2025. In addition, the DP had also proposed raising the annual tax threshold from 2.5 million won ($1,781) to 50 million won ($35,633). However, the government rejected the main opposition party’s proposal and instead voted in favor of PPP’s motion to delay the crypto tax to 2027.
WisdomTree Officially Files S-1 For XRP Spot ETF
Global ETF provider WisdomTree has submitted an S-1 registration document to the United States Securities and Exchange Commission (SEC) for an XRP Exchange-Traded Fund (ETF).
This comes as XRP has noted a strong rally recently, surpassing the market cap of Solana (SOL) and Tether (USDT). In addition, the filing showcases the market’s confidence in digital assets and their regulatory dynamics, especially after Donald Trump’s election win.
Coinbase Adds Apple Pay For Fiat-To-Crypto Purchases
Coinbase has announced the integration of Apple Pay support to its Onramp platform. According to the announcement, third-party app users, including self-custody wallets, would now have the luxury of purchasing crypto via Apple’s payment service.
In the past, buying crypto with fiat was a long and tricky process. It often involved jumping through hoops with exchanges and going through identity checks. However, with Apple Pay’s new integration, buying crypto is quicker and more straightforward, taking just a few seconds.
XRP Is Now The Third Largest Cryptocurrency By Market Cap
The XRP token, which is linked to Ripple Labs, has become the third-largest cryptocurrency in the world in terms of market capitalization after a weeks-long rally triggered by President-elect Donald Trump’s election win in November and recent speculation about the SEC potentially dropping its legal case against Ripple.
Moreover, XRP’s rise may result from two significant developments around Ripple:
- The potential approval of its new stablecoin RLUSD this week.
- The potential approval of an XRP ETF next year.
Coinbase Ceo Says He Will Not Work With Law Firms That Hire Crypto-Hostile Former SEC Staff
Coinbase CEO Brian Armstrong warned law firms not to take on former Securities and Exchange Commission (SEC) staff it sees as hostile to the crypto industry under the leadership of outgoing Chair Gary Gensler and the Biden administration.
This announcement was made after Milbank LLP hired Gurbir S. Grewal, a former director of the enforcement division of the SEC. Grewal used to supervise many enforcement operations against cryptocurrency firms, including Coinbase. Armstrong presided over the move by calling it an ethics violation for him to kill an industry while unlawfully denying clear rules for publication.
Celsius Founder Alex Mashinsky Pleads Guilty To Fraud Charges
Alex Mashinsky, the founder and former CEO of cryptocurrency lender Celsius Network, intends to plead guilty to two counts of fraud.
Celsius effectively ceased operations in mid-June 2022 as crypto valuations plummeted and could not make customer redemptions. It was reported that after Celsius halted trading and redemptions, Mashinsky reassured investors that their funds were safe publicly. Meanwhile, he removed $8 million of his assets from the Celsius platform.
The US Department of Justice charged Mashinsky with securities fraud, commodities fraud, and wire fraud for defrauding customers and misleading them about core aspects of the company he founded.
Federal Reserve Chair Jerome Powell Says Bitcoin Is A Competitor With Gold, Not The US Dollar
Speaking at The New York Times DealBook Summit in Manhattan on Wednesday, Federal Reserve Chair Jerome Powell said Bitcoin is a speculative asset like gold rather than something comparable to a currency.
“It’s just like gold only it’s virtual,” Powell said. “People are not using it as a form of payment, or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.”
The comments come as Donald Trump’s incoming administration is expected to take steps to legitimize digital assets.
President-Elect Trump Officially Selects Pro-Crypto Paul Atkins To Replace Gary Gensler As SEC Chair
President-elect Donald Trump announced that he intends to nominate crypto advocate Paul Atkins to chair the Securities and Exchange Commission (SEC).
Trump said Atkins, the CEO of Patomak Partners and a former SEC commissioner, was a “proven leader for common sense regulations.” In the years since leaving the SEC, Atkins has made the case against too much market regulation.
The commission oversees US securities markets and investments and is currently led by Gary Gensler, who has been leading the U.S. government’s crackdown on the crypto industry.
NYC Mayor Eric Adams Boasts About Bitcoin Paychecks
New York City Mayor Eric Adams reiterated his support for Bitcoin, reflecting on the skepticism he faced when he first decided to convert his paychecks into cryptocurrency back in 2022.
“Remember when y’all laughed at me when I first got my Bitcoin?” Adams said to a room of reporters during a press conference. “Who’s laughing now?”
Adams took his first three paychecks in Bitcoin and Ethereum upon assuming office in January 2022 and was ridiculed at the time.
He also said people should not be afraid of Bitcoin and voiced his satisfaction with people willing to think outside the box on President-elect Donald Trump’s administration.
Bitcoin Hits $100,000
Bitcoin hit $100,000 for the first time on Wednesday, a remarkable milestone for a cryptocurrency created over 15 years ago from what was essentially computer coding created under mysterious circumstances.
Bitcoin’s appreciation comes after Trump picked pro-crypto Paul Atkins as the next chair of the SEC earlier in the day, raising hope for a more friendly Wall Street cop for the industry. Republicans will also control Congress next year, fueling hopes in the crypto sector for far more favorable regulations.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
