Russia mulls crypto crackdown, Twitter integrates NFTs and Intel building ASICs
Crypto regulations in India, South Korea and the US dominate headlines
Flying under the radar is the news that Ethereum’s London upgrade has officially burned more than 1 million ETH.
Regulators are once again taking center stage in the blockchain and cryptocurrency world after India listed a bill that up for parliamentary discussion would ban private cryptocurrencies. The news caused BTC to trade at a discount in the country. At the same time, South Korea is finally looking to clarify regulation surrounding initial coin offerings, which were banned back in 2017. Additionally, former secretary of state Hillary Clinton shared some negative thoughts about cryptocurrencies.
Here’s everything you need to know about these stories, and more, in this week’s edition of OKEx Insights’ News of the Week.
Hillary Clinton fears destabilizing effect of cryptocurrencies
Former First Lady, secretary of state and presidential candidate Hillary Clinton continues to take a negative stance on Bitcoin and the wider cryptocurrency industry this week, telling MSNBC that they threaten to undermine the U.S. dollar as the global reserve currency. In doing so, she suggested that the Biden administration should regulate the ever-growing cryptocurrency market — citing fears that Russia, China and non-state actors could use cryptocurrency to destabilize other nations and the dollar’s global status.
- Clinton’s comments come after those made last week, when she told the Bloomberg New Economy Forum in Singapore that cryptocurrencies may destabilize nations.
- The United States remains a somewhat unfriendly environment for the blockchain and cryptocurrency industry after the passing of its high-profile infrastructure bill — which, if left unchanged, could force crypto companies out of the country in search of more-favorable tax climates.
Axie Infinity land plot purchased for record 550 ETH
A plot of virtual land in blockchain game Axie Infinity sold for 550 ETH on Wednesday — a new record for the leading GameFi title. The space, worth approximately $2.4 million at the time, is at the center of the game’s map and was purchased by user “wen land” from user “ArcaChemist.”
- Investment in Axie Infinity’s virtual land has, thus far, been profitable. In February, nine plots were sold for more than 888 ETH — a to-date increase in fiat value of approximately $2.5 million. However, this is largely due to both the increase in the price of ETH and the explosive growth of the game’s popularity.
More than 1 million ETH burned since Ethereum’s London upgrade
More than one million ETH have been burned since Ethereum’s London network upgrade went live earlier this year. As of the time of this writing, 1,033,294 coins have been burned — worth approximately $4.2 billion.
- London’s implementation of Ethereum Improvement Proposal 1559 has had an undeniable impact on ETH’s market dynamics. At face value, the more than one million burned coins are unable to be sold. Thus, the price of the leading altcoin faces decreased sell pressure from the supply side as inflation is reduced.
South Korea may prioritize ICO regulation
South Korea is reportedly set to implement a regulatory framework for initial coin offerings after banning them back in 2017. The vice chairman of the country’s Financial Services Commission called for ICO regulations to be fast-tracked into South Korea’s Capital Market Act.
- This piece of news out of South Korea is something of an odd one, given that 2017 feels like ancient history in the blockchain and cryptocurrency industry, and that fundraising in the space has evolved significantly away from ICOs and into other formats, such as initial exchange offerings and initial DEX offerings.
Bitcoin trades at a discount in India after bill listing
The Indian government’s listing of a bill — which would essentially ban cryptocurrencies — for parliamentary discussion sparked a country-specific decline in the price of BTC. Coins were changing hands at a 3% discount in India after the news broke.
- The 3% discount in the price of BTC off of the global average was indicative of panic selling within the country, which “seeks to prohibit all private cryptocurrencies in India,” barring “certain exceptions.”
- Though some have speculated that “private cryptocurrencies” refers to privacy coins, such as XMR, the wider consensus is that the language refers to all cryptocurrencies that are not government-issued.
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