1. Market Wrap: Bitcoin Slips as Infrastructure Bill With Crypto Tax Provision Heads to House
Bitcoin pulled back as traders digest regulatory developments in the U.S.
Bitcoin pulled back on Tuesday after a nearly 20% rise over the past week. The cryptocurrency was trading at around $45,000 at press time and is down 2% over the past 24 hours, compared with a nearly 1% loss in ether over the same period.
Analysts remain optimistic about bitcoin despite regulatory uncertainty in the U.S. regarding crypto tax rules.
“The crypto sector itself is new, and leaning on a nascent technology industry for taxes could impair its growth,” Lucia della Ventura, a researcher at Trinity College Dublin and legal compliance manager at financial software company Ledgermatic told.
“It is necessary to wait for the final vote, taking into account that several amendments have been tabled as they can potentially change the impact of the bill for companies,” Ventura wrote.
Bitcoin (BTC) $45593, -1.37%
Ether (ETH) $3135.1, -0.33%
S&P 500: 4436.8, +0.1%
Gold: $1728.6, -0.05%
10-year Treasury yield closed at 1.347%, compared with 1.319% on Monday
“Cryptocurrency traders are not so much focused on the expected passing of President Biden’s infrastructure bill, which, as it stands, will include new tax-reporting rules that are very negative for the space,” Edward Moya, an analyst at online brokerage Oanda told.
2. PNC Bank Is Planning a Crypto Offering With Coinbase
A source said PNC, the fifth-largest bank in the U.S., plans to offer crypto investment services to clients.
Coinbase said Tuesday it’s working with PNC Bank, the fifth-largest bank in the U.S., on a previously undisclosed crypto project.
“In recent months, we have formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments,” Tuesday’s shareholder letter read. When be asked, Coinbase declined to elaborate.
A source had previously told CoinDesk that the PNC Bank is expected to unveil a crypto jawn in the coming quarters.
The service would give the Pennsylvania-based national bank more seamless access to cryptocurrency investments for its clients, the source said. It’s just one facet of PNC’s broader digital assets and blockchain strategy.
PNC is the latest mainstream megabank to dip its toe into digital assets, and perhaps the largest to do so with Coinbase, the industry’s biggest name. PNC is already plotting a more crypto-centric future and months ago began hunting for a hire to lead its innovation push.
3. BitMEX Announces $100M CFTC, FinCEN Settlement
BitMEX will pay a $100 million penalty to resolve the charges, the firm announced in a blog post.
Crypto derivatives trading platform BitMEX announced Tuesday it had reached a settlement on civil charges with the U.S. Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network (FinCEN).
BitMEX will pay a $100 million penalty to resolve the charges, the firm announced in a blog post, with $50 million going to the CFTC and the remainder to FinCEN. The blog post did not address the criminal charges filed by the U.S. Department of Justice against former BitMEX CEO Arthur Hayes and other executives.
A consent order in the CFTC case, filed Tuesday, found that BitMEX offered U.S. persons leveraged and unlicensed crypto products — a violation of federal law — between 2014 and 2020. The firm’s oversight systems were “inadequate” and lacked effective know-your-customer (KYC) and anti-money laundering (AML) safeguards, the document said.
In doing so, BitMEX employees violated the Bank Secrecy Act, commodities regulations and CFTC rules, the court found.
4. Coinbase Rakes In $1.9B in Transaction Revenue in Q2, Beating Estimates
The largest cryptocurrency exchange in the U.S. warned, however, that its number of monthly transacting users and trading volume would be lower in the third quarter.
Coinbase posted $1.9 billion in transaction revenue in the second quarter, in its second-ever earnings report as a public company. Analysts had estimated the exchange would post $1.57 billion in transaction revenue.
The U.S.’ largest cryptocurrency exchange grew to 8.8 million monthly transacting users (MTUs) and 68 million total users in the quarter, versus analyst estimates for 6.7 million monthly users and 62.8 million total users. The exchange’s take rate — or retail trading revenue divided by retail trading volumes — was 1.24%, up from 1.21% last quarter.
The company did note that MTUs in July had declined significantly to 6.3 million and trading volume was only $57 billion in the month. While August’s numbers were slightly higher than this, Coinbase warned that MTUs and trading volume would be lower in Q3 compared to Q2.
The exchange also slightly lowered its yearly forecast range for active users, a key metric, from a range of 5.5 million to 9 million by the end of the year, to a range of 5.5 million to 8 million.
Coinbase reported that more than 9,000 financial institutions are now using the exchange to create their own crypto products. The exchange publicly named PNC Bank as a partner for the first time, and it also named Elon Musk, SpaceX, Tesla, Third Point LLC and WisdomTree Investments as partners.
5. Crypto Panhandlers Beg Poly Network Attacker for Share of $613M Haul
First came the attack. Then came the moochers.
After an alleged hacker drained more than $600 million from cross-chain decentralized finance (DeFi) protocol Poly Network, opportunistic cryptocurrency users flooded Ethereum’s blockchain explorer with pleas for even a tiny portion of the plunder.
“Anything would help ❤,” a user under the handle “Poormate” wrote Tuesday on a comments section of the blockchain data site Etherscan.
“I already live in a sh**ty country so life is hard,” another user wrote. “Will you help a brother out?”
“Be a modern robin hood and airdrop it to everyone here!!” came another request.
As the popularity of DeFi has mushroomed over the past year, with collateral locked into the blockchain-based lending protocols growing 17-fold to some $80 billion, this corner of the cryptocurrency sub-industry has become a target of attacks.
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August 11, 2021