India plans to regulate crypto assets according to cabinet notes

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Bitcoin and Crypto Market News Friday, December 03, 2021 - 18:59

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Bitcoin has managed to regain all of its losses post the Black Friday dip to trade at $56,800 currently. The global cryptocurrency market cap stands at $2.6 billion with a 10% decline in total crypto trading volume in the last 24 hours indicating a mild bearish sentiment among the market participants. But the enthusiasm among companies and countries to get a hold of the cryptocurrency ecosystem continues to grow. In this article, we cover all the stories that drove in the cryptocurrency world this week.

No Crypto Ban in India

Two weeks ago, unverified reports surfaced on Indian media claiming that the Indian government is planning to launch its own central bank digital currency (CBDC) and ban all “private” cryptocurrencies. It was later clarified by the Finance Minister Ms.Nirmala Sitharaman that the proposed cryptocurrency bill had undergone changes after having a conversation with the crypto industry stakeholders.

In a more recent update, according to cabinet notes obtained by a major news outlet in India, the modified bill is believed to contain suggestions to regulate cryptocurrencies as assets and local crypto exchanges to be regulated by the Securities and Exchange Board of India (SEBI). The note also mentioned that investors will be given a certain time period to declare their crypto holdings and must transfer them to exchanges regulated by SEBI. However, these are speculations at this point while awaiting an official update on this.

Metaverse attracts companies

Leading sports shoe and apparel manufacturer Adidas has announced it is entering the metaverse (virtual reality space) by partnering with Bored Ape Yacht Club (BAYC), gmoney NFT and PUNKS comic. BAYC contains 10,000 non-fungible tokens (NFTs) on blockchain and has attracted celebrities like Jimmy Fallon, Stephen Curry etc. Gmoney is a NFT influencer while PUNKS comic combines the NFT and physical comic books to create crypto comics. The floor value, average price at which the NFT can be bought, of BAYC has crossed 50 ETH post this news.

Beer maker Budweiser has launched a NFT collection Heritage Collection designed to celebrate the brand’s iconic history and its entry to the Metaverse. The collection, which sold out within an hour, features 1936 pieces that are symbolic of the year Budweiser’s first cans were created. It had also recently bought beer.eth (similar to a .com name), an Ethereum blockchain-based domain name that will be truly unique.

DeFi attacks plague ecosystem

Decentralised finance (DeFi) exploits continues to be a major barrier for the transition from traditional finance to DeFi in 2021. This week more than $150 million was exploited in security breaches at BadgerDAO and MonoX. Decentralised exchange (DEX) MonoX suffered a cyber attack to the tune of $30 million while BadgerDAO suffered a front-end attack that cost $120 million to the investors.

More ETFs are on the way

Leading investment firm Fidelity Canada became the first in the country to launch the Fidelity Advantage Bitcoin exchange-traded fund (ETF) and the Fidelity Advantage Bitcoin ETF Fund (mutual fund). The funds are listed on the Toronto Stock Exchange and seek to track the performance of Bitcoin's spot price. Fidelity currently has $162 billion in assets under management (AUM).

Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

 

 

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