Category: Cryptocurrencies

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Coinbase Cryptocurrencies Markets

Coinbase Sinks to Record All-Time Low Amid $430 Million Loss

Nasdaq-listed Coinbase has endured a torrid time of late. Most recently, its share price tanked over 20 percent following a distinct shift in tone away from risk-on assets, sinking the preeminent exchange’s share price to a record all-time low and surpassing the unenviable milestone it reached just two weeks ago:

Disappointing Earnings

The sharp downward move was precipitated by Coinbase’s recently released earnings for Q1 2022, and unfortunately for shareholders it wasn’t good news.

The company revealed that despite generating over US$1.17 billion in revenue, it remained significantly shy of the US$2.5 billion it took in Q4 2021. In addition, the business reported quarterly losses of US$430 million, and even analysts were left scratching their heads since consensus opinion was that Coinbase would, at the very least, break even.

Perhaps most concerning is the fact that active monthly users dropped from 11.2 million to 9.2 million over the past quarter, reflecting in part the dour mood in crypto markets.

The market responded predictably to the weak results as Coinbase shares plummeted by more than 20 percent, touching as low as US$62. At the time of publication it had somewhat recovered, trading at US$78, albeit still 79 percent lower than its IPO. Youthful on-chain wizard Will Clemente saw the funny side of it all:

Upside is Lipstick on a Pig

Despite the disappointing results, Coinbase sought to temper the bad news with an upbeat tone, saying:

The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results. [However], we entered these market conditions with foresight and preparation, and remain as excited as ever about the future of crypto #wagmi.

Coinbase shareholder letter

Anil Gupta, Coinbase’s VP of Investor Relations, noted that the company was well positioned to weather current conditions, saying: “We don’t have infinite runway, but we have plenty of gas in the tank.”

The company is no doubt on the back foot, amid ongoing criticism of its custody arrangements as well as the unsuccessful launch of an NFT marketplace. With the market in turmoil, Coinbase will need something special to turn the ship around, as investors are unlikely to tolerate such dramatic and prolonged declines since inception.

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Bitcoin Cryptocurrencies Ethereum

Bitcoin and Ethereum Now Down More Than 50% from All-Time Highs

The market has shed some blood this month, with the father and mother of all cryptos, Bitcoin (BTC) and Ethereum (ETH), down more than 50 percent from last year’s all-time highs.

Biggest Crypto Market Sell-Off Since March 2020

In what is the biggest market sell-off since March 2020, the crypto market has been hit with massive outflows following the lead of the US stock market, which also plummeted after the US Federal Reserve moved to raise interest rates by 50 basis points.

Bitcoin is currently trading at US$31,259, an 8 percent drop in the past five weeks. The second-largest cryptocurrency, Ethereum (ETH), has followed Bitcoin in its massive sell-off. As per data from CoinMarketCap, ETH has also more than halved its price, currently trading at US$2,354.

BTC chart. Source: Messari
ETH chart. Source: Messari

Thirty-day exchange flows are now almost back to neutral after this week’s sell-off, as shared by market analyst Sam Rule:

Things started to get worse for the market after Terra’s Luna Foundation Guard (LFG) sold more than US$750 million, disguised as an OTC (over-the-counter) loan to trading firms:

El Salvador Buys the Dip Again

While the crypto community doesn’t seem to be bullish on the current market, El Salvador’s president, Nayib Bukele, is encouraging people to buy as long as we have the dip. Bukele recently announced that his government had bought 500 BTC at an average price of US$30k per coin, worth approximately US$15.5 million at that time:

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Bitcoin Crypto News Cryptocurrencies Cryptocurrency Law Cryptocurrency Tax

Panama Passes Crypto Bill Exempting Digital Assets From Capital Gains Tax

One by one, nation states are taking steps towards becoming attractive destinations for the burgeoning digital asset sector. The latest to do so is international financial centre Panama, which has just passed a bill exempting crypto from capital gains tax:

Investment and Employment Boost

A plenary session of the Panamanian Legislative Assembly has approved a bill (40-0) regulating the use of crypto in the Central American country:

Project Law No. 697, which regulates the commercialisation and use of cryptocurrencies, the issuance of digital value, the tokenisation of precious metals and other goods, payment systems and dictates other provisions, was approved in the third debate.

Panamanian national assembly, Twitter

Congressman Gabriel Silver, who has actively promoted the bill, announced: “Crypto Law approved in third debate! This will help Panama become a hub of innovation and technology in Latin America!”

Last week, he argued that the bill aimed to “give legal stability to crypto assets in Panama [and] develop the crypto industry in the country to attract more investments and generate more employment”. Silver has since added:

The only thing missing is for the President to sign it. Thank you to all who helped. This will help create jobs and financial inclusion.

Gabriel Silver, Panama Congressman

Panama Steps Up its Game

Increasingly, we’re seeing countries, cities and regions implementing attractive regulatory frameworks to attract crypto capital and talent.

They don’t need to go as far as El Salvador and the Central African Republic and make bitcoin legal tender. Many have instead opted for zero capital gains tax, including the Swiss city of Lugano, as well as Roatán in Honduras and Madeira in Portugal.

Bitcoin Beach: has El Salvador started a fiat crypto wave? - Raconteur
A vendor at “Bitcoin Beach”, El Salvador. Source: Raconteur.net

In fact, Bitcoin educator Stefan Livera has argued that “removing capital gains from bitcoin spending is more important than legal tender laws”, and he may well be right.

The logic is that in doing so, bitcoin or cryptocurrencies become de facto legal tender as the act of spending does not constitute a capital gains tax event. This is also attractive to Bitcoiners as citizens have the ability to opt in, unlike legal tender laws, which are imposed from above by central authorities.

Panama’s latest move provides a clear signal to competing jurisdictions that when it comes to luring crypto investment and employment, it means serious business.

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Crypto News Cryptocurrencies Cryptocurrency Law Regulation Ukraine

Ukraine Bans Citizens From Buying More Than $3,400 Crypto Per Month

Shortly after Russia’s invasion of Ukraine, crypto donations poured in from around the globe to help fund the war effort, eclipsing US$100 million. In a surprising twist, the nation’s central bank has now placed limitations on crypto purchases for its citizens:

Preventing ‘Unproductive Capital Outflows’

According to a National Bank of Ukraine (NBU) announcement, Ukrainians are now prohibited from purchasing digital assets using the country’s fiat currency, the hryvnia (UAH).

They are, however, permitted to purchase crypto up to a maximum of 100,000 UAH (approximately US$3,400) per month, provided it is done with foreign currencies. According to the announcement, these measures have been put in place under martial law to prevent “unproductive capital outflows” from the country.

The NBU commented that the measures were “temporary” and that it planned to allow those citizens fleeing the country to make cross-border peer-to-peer (P2P) transfers within the above limit from accounts in its national currency.

Not as Crypto-Friendly as Expected

With the Ukraine government being a beneficiary of crypto donations, even partnering with FTX to do so, the NBU’s move has been almost universally criticised on Twitter:

Capital controls are common, particularly during times of war, but there is something particularly stinging about this ban. Perhaps because it emanates from a nation that appeared to be progressive and on board with the crypto industry and community. It could also be the realisation that the NGU has effectively denied Ukrainians a financial offramp to further currency debasement, inflation and economic ruin.

As much of the developed world has “stood with Ukraine”, it’s evident that the latest measures represent just another blow for a population knee-deep in kinetic war:

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CBDCs Crypto News Cryptocurrencies Regulation

Bahamas to Allow Citizens to Pay Taxes with Digital Assets

Citizens of the Bahamas will be able to pay their taxes using cryptocurrency, as per this week’s release of a white paper from the Bahamian government.

Bahamian Government Pushing Broader Crypto Adoption

The government will allow Bahamians to pay taxes by collaborating with the nation’s central bank as well as the private sector. It will also encourage broader adoption of the nation’s CBDC (Central Bank Digital Currency) and access to crypto through the Bahamian Dollar.

The government will endeavour to ensure that digital assets are not used for the evasion of taxes or sanctions, and will seek to ensure compliance with all applicable tax information exchange agreements (TIEA) and domestic laws and agreed OECD standards.

Bahamian government white paper

The white paper outlines the island nation’s strategy to become a “leading digital assets hub in the Caribbean” from now until 2026, according to Bahamian Prime Minister Philip Davis. As part of the plan, the government will establish a digital asset policy committee and a digital advisory panel, with the latter chaired by Davis:

Caribbean Crypto Paradise

The Bahamas was one of the first to implement proper regulations for the digital assets landscape. In 2020, the government created the Digital Assets and Registered Exchanges Act (DARE), allowing crypto companies to operate legally within the nation.

Some of the policy objectives outlined in the white paper are seeking to improve the attractiveness of the Bahamas as a well-regulated jurisdiction and to explore new opportunities in the digital assets landscape.

A few months ago, Crypto News Australia reported that the Tourism Authority of Thailand (TAT) was looking to attract crypto millionaires to revive visitor numbers to an industry adversely affected by the pandemic.

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Australia Crypto News Cryptocurrencies Investing Surveys

Over 1 Million Australians Own Cryptos According to Recent Roy Morgan Survey

According to a study conducted by Australian research firm Roy Morgan, over one million Australians now own cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardo, Dogecoin and Shiba Inu.

The February survey investigated Australians’ investments and revealed that 5 percent, or just over one million Australians over the age of 18, now own at least one cryptocurrency. Over two-thirds, or 742,000 (69 percent), of Australian crypto investors are men, compared to only 332,000 (31 percent) who are women, indicating a massive gender difference when it comes to crypto investments.

Most Crypto Investors Are Younger Than 35

The study revealed that people under 35 were more likely to be holders of cryptocurrencies, with over one-in-10 people in this cohort. Participants over 35 were less likely to be invested in digital assets, but still made up 40 percent of the total investor market, including 296,000 aged 35-49 (28 percent of all investors) and 138,000 aged 50 and older (13 percent).

Cryptocurrency investors by age and gender. Source: Roy Morgan

Older Cohort Has Biggest Average Crypto Investments

Although they might be less likely to invest in cryptocurrencies, Australians aged 35 and older are a significant part of the crypto market in the country, given the average size of their investments.

The study revealed that participants aged 50 and older had the largest average crypto investments, averaging around A$56,000. The volume of investments in this cohort means the value of all crypto holdings of people aged 50 and up is around A$7.6 billion, higher than any other age group and accounting for 35 percent of the total market.

Although more inclined to invest in cryptocurrencies, Australians aged 18-24 only hold an average of A$2,600, making the total value of investments for this group just A$630 million, or about three percent of the total market valuation.

The market shares for Australians aged 25-34 and 35-49 were similar, with the former cohort averaging about A$18,200, while those in the latter group came in at A$21,600. Those aged 25-34 were more likely to invest in the market and thereby made up A$7 billion, or 32 percent, while those aged 35-49 owned A$6.4 billion, or 30 percent.

Gender Differences Are Significant

The analysis by gender revealed that men’s average investments totalled A$23,400, almost double those of women (A$12,800). This gender disparity shows that men hold 81 percent (A$17.4 billion) of the market, while women own just 19 percent (A$4.2 billion).

Total value of cryptocurrency investments by age and gender. Source: Roy Morgan

The results of this study are significant and indicate positive sentiment toward crypto adoption, given that Australia lagged in the most recent global ‘Crypto Awareness’ survey, although another 2021 survey revealed that most Australians still have no idea about cryptos or NFTs.

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Australia CoinSpot Crypto News Cryptocurrencies

Aussies Can Now Buy Luxury Cars with Crypto Through CoinSpot

CoinSpot is now allowing Australians to purchase luxury vehicles using up to 30 types of cryptocurrencies, including bitcoin and ethereum.

This comes as the high-profile crypto exchange enters a partnership with Melbourne-based prestige car retailer Dutton Garage: 

Any purchases made will go through CoinSpot’s over-the-counter (OTC) trading desk to limit exposure to fluctuations in the market. This will also help prevent slippage for customers transacting values over A$50,000 and minimise low liquidity risk.

‘Strong Demand’ for Crypto Car Purchases

In a joint statement, CoinSpot and Dutton Garage said the partnership was in response to “strong demand” from Australian customers to purchase vehicles and other luxury items using crypto.

“With Web3, digital currencies are becoming more than just stores of value, and instead, legitimate ways to purchase big-ticket items,” said Gary Howells, CoinSpot’s chief product officer. “Increasing crypto’s utility is the key to driving mass adoption of what we believe is the future of finance.”

Juv Jayaram, chief technology officer at Dutton Group, added: “Working with CoinSpot enables our customers to access their crypto investments and transact with us in a seamless and transparent manner.”

The CoinSpot-Dutton deal is not the first meeting of crypto and car commerce in Australia. In April 2021, carbuyers.com.au announced a new payment system that allowed Aussies to use bitcoin to cover the purchase of a vehicle. Two months later, auction house Lloyds started accepting major cryptocurrencies as payment for sport and collector cars.

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Crypto Exchange Crypto Staking Cryptocurrencies Insurance Tokens Zipmex

Zipmex’s Crypto Staking Program Offers Australians Up to 10% APY Interest with No Lock-in Period

Zipmex, one of the major established and regulated Australian digital asset exchanges, has recently launched a new product offering in Australia called ZipUp which offers attractive crypto yield returns.

Along with your regular cryptocurrency buying and selling, with Zipmex you can now use a “ZipUp” crypto staking account that gives daily rewards on your crypto. One of the attractive features of this account is having the flexibility of being able to withdraw and deposit any amount, anytime – with no lock-in period.

Zipmex’s Crypto Staking Rewards

Following December’s successful launch of its “ZLaunch” token reward program, Zipmex is now offering users interest rates of up to 10 percent on some digital assets on its ZipUp+ program.

ZipUp+ allows users to enjoy daily crypto bonuses on Bitcoin (BTC), Zipmex Token (ZMT), Ethereum (ETH), US Dollar Coin (USDC), Tether Coin (USDT), and Litecoin (LTC). The rewards are calculated based on the user’s VIP level, and higher rates are on offer for those who lock up their Zipmex Tokens (ZMT).

The full rewards table is outlined below and available on Zipmex’s website.

Zipmex earning schedules by VIP Levels. Source: Zipmex

Given that banks are currently offering little interest on savings accounts, the demand for interest on crypto is high, despite some crypto exchanges dropping interest rates.

What makes Zipmex+ attractive to users in search of a yield is that there is no minimum deposit amount and no lock-in period. Through Zipmex’s easy-to-use app interface, users can withdraw, trade or deposit anytime while enjoying daily crypto rewards.

Read our guide on how to stake your crypto with Zipmex.

How to Participate

Users interested in earning daily rewards on their crypto can sign up and get A$20 free in ZMT and then start staking their crypto to earn daily rewards.

About Zipmex

Zipmex is a trusted AUSTRAC-registered exchange with millions of users across Australia and Asia who enjoy 24/7 customer support, and instant trades, withdrawals and deposits.

With transaction fees as low as 0.1 percent per transaction, the platform is well suited for traders and HODLers alike.

The company is also duly registered with Blockchain Australia and backed by subsidiaries of the Mitsubishi Financial Group, a leading global financial services group and one of the largest banking institutions in Japan.

Read our full review on Zipmex here.

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Australia Crypto News Cryptocurrencies Regulation

Australian Opposition Party Called Out for Lack of Clear Crypto Policy

With the starter’s gun for the 2022 Australian federal election having been fired on the weekend, the Labor Opposition party is already dodging bullets about lacking a crypto policy.

Stephen Jones, Labor’s shadow minister for financial services, quickly returned fire by declaring that the Opposition wants stronger consumer protections and regulation of exchanges.

“The broad principles we would take to crypto regulation are safety and transparency,” Jones said. “That inevitably leads to greater regulation of exchanges.”

Jones added that if Labor were to win power from the ruling Liberal-Nationals Coalition, crypto would be considered as part of a broader overhaul of the payments system.

Crypto Should Be at the ‘Centre of the Election’

Last week, expatriate crypto investor Mark Carnegie said that crypto “should be at the centre of the election” because digital currency and blockchain infrastructure were shaping to be an US$8 trillion (A$10.6 trillion) to US$13 trillion industry by 2030.

Carnegie, a venture capitalist currently based in Singapore, told the Australian Financial Review Cryptocurrency Summit that Labor lacked a policy on crypto and “it just shows you the lack of leadership” on the issue.

At the summit, he and former Australian Securities and Investment Commission (ASIC) chairman Greg Medcraft urged Australian regulators to develop a plan that encouraged digital asset technology and investment.

Carnegie accused the government and regulators of moving too slowly on the issue. Jones has since responded by saying that putting crypto under financial services regulation “made sense”, and that he would consult on the precise details if Labor won government.

‘Seven Words is Not a Crypto Policy,’ says Liberal Senator

Pro-crypto Liberal Senator Andrew Bragg (NSW) echoed Carnegie in claiming Labor has “no real policy” in place. “My sense is they’re running a small-target strategy,” Bragg said. “They’re not saying much and my sense is this agenda is at risk and that is very concerning.”

In a return salvo, Jones pointed out that the Coalition had been in government for almost nine years and that it was hypocritical for it to blame Labor for a lack of crypto policy.

The fact that 43 percent of Australians polled in a 2021 Gemini survey said they had invested in crypto says this is an election issue that cannot be ignored.

However, another recent survey revealed that nine in 10 Australian financial advisers had been asked by clients about investing in cryptocurrencies but only a third were willing to allow them to do so.

With the election due on May 21, it’s time for both sides of Australian politics to clearly declare their hands on crypto.

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Australia Cryptocurrencies Cryptocurrency Law Regulation

ASIC Warns Aussie Crypto Companies to Expect Higher Regulation Moving Forward

The Australian Securities and Investments Commission (ASIC) has warned cryptocurrency companies that they will be held to the same standards as traditional finance companies, as the prospect of digital asset regulation strengthens.

The news was shared by ASIC commissioner Cathie Armour at Blockchain Australia’s crypto conference on March 24.

Higher Crypto Regulations Coming

Armour detailed to conference attendees that the “growing maturity” of the crypto industry means that crypto businesses may need to alter how they interact with the regulator. Businesses looking to offer crypto-related products will be expected to meet the same requirements as all other companies in the wider finance industry.

https://www.linkedin.com/in/cathie-armour-50b89013a/overlay/photo/

We’re doing this because we’re keen to maintain our robust regulatory framework. We’re really looking for industry to work closely with us and to do a lot of their own homework to navigate the details.

ASIC commissioner Cathie Armour

This isn’t the first time Armour has bestowed a warning on the financial industry. She has previously stated that Aussie influencers – specifically, “finfluencers” – could face up to five years’ jail time for breaking financial advice laws.

Past ASIC Warnings to Investors

ASIC is repeatedly warning investors about various dubious practices occurring within the financial industry. Most recently, the regulator cautioned against switching to a self-managed super fund (SMSF) to invest in crypto. Following an increase in crypto marketing for “investment opportunites”, Aussies were being “enticed” to switch to an SMSF before investing.

In October 2021, ASIC began joining investor Telegram groups to warn about an increase in pump-and-dump schemes. ASIC contacted one particular private Telegram group of 288 members, involving potentially illegal market tip-offs, to warn those involved that they were being monitored.

In August 2021, ASIC again cautioned Aussies to beware of unlicensed crypto companies. The warning was warranted due to an increase in losses from trading crypto-related products.