Crypto News Room
Welcome to Wizardias August update on crypto. Some important topics we will discuss include:
📖 Exploring Fresh US Crypto Tax Regulations
🔓Security Breach Affects FTX and BlockFi Creditors
👀 This Week's Must-Watch List
🍪 OnlyFans Ventures into ETH
Let’s get to it then. The United States government is unveiling new crypto tax regulations…282 pages of them to be precise 😲
Here's a breakdown of the important stuff that the U.S. tax regulators have proposed.
- Crypto brokers would be required to amass and submit customer information to the IRS.
- The term "crypto brokers" encompasses centralized and decentralised crypto trading platforms, crypto payment processors, and specific crypto wallets.
- Brokers must furnish details on customers' tax statuses via a novel 1099 form outlining gains and losses.
- Investors would utilise this form to fulfill their tax obligations.
Should the proposal pass, the regulations would take effect in 2026, affecting the 2025 tax year. Use your time wisely and effectively and be aware of new changes in the works. We all know Gazza G is doing his best to make crypto hard for us all.
This development bears significant weight for two key reasons…
On one hand, regulations are pivotal, fostering transparency in the crypto realm and propelling substantial expansion.
Furthermore, these new rules could potentially yield billions in revenue for the U.S. government over the ensuing decade.
On the flip side, opposition is rife due to the inclusion of decentralised exchanges and self-hosted wallets.
So, what comes next? The U.S. government has extended a window for public commentary until October 30th, followed by a public hearing on November 7th, 2023.
While necessary, clear crypto tax rules are essential. However, vague guidelines targeting decentralized platforms (and crypto as a whole) could nudge crypto enterprises away from the U.S.
In fact, this shift has already commenced…
Numerous crypto companies have ceased U.S.-based operations.
Founders are advising crypto developers to focus on international markets over the next 5-10 years.
Although the proposed tax rules remain unconfirmed, it seems U.S. investors might be left in the lurch, while the global crypto sphere thrives.
The last day of August 2023 has arrived, and in the crypto realm, it's bound to go out with a bang. Some key events to watch include:
Bitcoin ETFs and the victory of Grayscale:
In a decisive 3-0 ruling, the U.S. Court of Appeals for the D.C. Circuit handed Grayscale a resounding win.
The judges dismantled the SEC's stance against Grayscale's Bitcoin spot ETF application, highlighting the absence of sound reasoning.
Using language like "below the expected standard," "lack of coherent rationale," and "random and arbitrary," the judges critiqued the SEC's decision-making process, akin to a Comedy Central Roast. (A memorable moment indeed.)
Significance: Over the past years, the SEC has been putting a halt to spot ETF proposals, primarily citing concerns about varying impacts of fraud and manipulation on spot and regulated futures markets.
However, the court's verdict unveiled no substantiating evidence for these fears. (Fun fact: Grayscale provided data revealing an impressive 99.9% correlation between the two markets.)
So, What's Next? Grayscale has secured a "petition for review."
This implies that the SEC must reevaluate the application and either:
a) Embrace the application's approval.
b) Seek alternative grounds to reject the application, extending the process's timeline.
c) Challenge the court's decision, aiming for an "en banc" review—an infrequently invoked process involving additional judges.
Irrespective of the path taken, the court's ruling stands as a monumental triumph for the industry.
Not only does it heighten the likelihood of a Bitcoin ETF green light, but more significantly, it showcases that the SEC's authority isn't the ultimate determinant in the crypto landscape.
Have you seen Wizardias new partnership with Kriptomat? Read it here!
🍪 The naked side of crypto… And more
OnlyFans injected over $19 million into ETH last year, according to recent financial statements. The flip side? OnlyFans' investment has sunk 42%. The silver lining? Other metrics are soaring—revenue, profit, subscribers, and excitement.
Three founders of the popular memecoin PEPE siphoned off $16 million from the project. Abandoning ship, giving full control to the last standing founder.
Western Union is contemplating the integration of Ripple blockchain and XRP token into global money transactions. Read how stable coins can revolutionise the future of finance here.
BlackRock has plunged $400 million into publicly-listed Bitcoin mining companies, emerging as the second largest shareholder in 4 out of the 5 leading Bitcoin miners.
Earl Sweatshirt and The Alchemist unveiled a new NFT music album on Gala Music. During their recent tour, QR codes enabled lucky fans to snag limited-edition NFTs of select tracks. Other enthusiasts can either purchase the album or stream it for free on Gala Music.
Well that raps up current crypto events for now! See you next week :)
Ryan Turnbull
Introducing Ryan Turnbull, a passionate Australian Chief Vibe Officer at Wizardia. Among many things, Ryan builds Wizardia’s community, creates captivating live streams, forms partnerships with other web3 projects, and produces engaging video and blog content. With his expertise, Ryan introduces crypto gaming to both masters and beginners, fostering a vibrant, exciting and supportive environment.
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