Crypto investment products experienced their biggest outflows in three months. Digital asset investment firm CoinShares reported that investors took out $23 million last week. Inflows (investors putting money into crypto products) were experienced only in short Bitcoin funds, which bet on the price of BTC going down. The outflows can be attributed to the fallout of FTX.
Crypto prices today: Bitcoin up 1.6%, ETH rises 2.8%
Bitcoin is currently trading at $16,468.48, an increase of 1.60% over the previous day. Ethereum rose 2.88% over the last 24 hours to $1,206.09. Solana rose 2.6% to $13.7, while Cardano is trading higher by 1.78% at $0.311. Avalanche (AVAX) is up 1.34% to $12.49. The global crypto market cap stands at $834.86 billion, a 1.87% increase over the previous day.
Line to shut down US crypto exchange next year
Japan-based Line is shutting down its U.S. exchange Bitfront in the new year to focus on its other blockchain ventures. New signups have been suspended, and services will be slowly turned off over the next four months. Line, which also runs the LINE blockchain system and the Link (LN) token, said the decision had been taken in the best interest of its other projects.
FTX resumes post-bankruptcy payments to employees
FTX said it will resume “ordinary course payments” of salary and benefits to employees worldwide and certain non-U.S. contractors. The announcement comes a week after FTX’s legal counsel filed a motion to pay compensation, benefits, and relief to its employees and vendors. You can read more about FTX’s collapse here.
BlockFi files for bankruptcy
Crypto lender BlockFi filed for bankruptcy protection on Monday. It recently suspended withdrawals amid the ongoing fallout from exchange FTX’s bankruptcy filing. According to a press release, BlockFi has about $257 million in cash on hand. BlockFi had several assets deposited on FTX and was still owed some of the credit FTX had extended.
Things have turned from bad to worse for the virtual digital assets industry, which comprises cryptocurrencies and NFTs. The second-largest crypto exchange in the world has collapsed, causing widespread sell-off and panic in the crypto markets. FTX has started bankruptcy proceedings in the US, and its CEO Sam Bankman-Fried has resigned. His net worth fell from nearly $16 billion to zero in three days!
In this article, we dive into the reasons behind FTX’s collapse and recent developments surrounding the crypto firm.
The Rise of FTX
In 2017, former Wall Street trader Sam Bankman-Fried (SBF) wanted to dabble in crypto and established a proprietary trading firm called Alameda Research. The firm offered digital asset products and their derivatives (financial contracts). Two years later, he founded FTX along with ex-Google employee Gary Wang. With its headquarters in the Bahamas, the crypto exchange sought to promote liquidity and transactions of various crypto coins and tokens. FTX connects crypto buyers & sellers and collects a commission on all transactions.
Users can deposit fiat money (USD or other govt-issued currencies) into their FTX account and use the funds to buy & sell crypto. FTX provided leverage to those who were willing to bet big on certain trades. [Leverage is extra money offered by the exchange so that you can trade in larger quantities and potentially make more profit or loss.]
The Case of FTT Tokens:
FTX also introduced its own crypto token called FTT. The company promised all token holders priority access to their trading platform (lower fees, no-cost withdrawals), giving FTT some credibility. Moreover, FTX used to buy its token using a portion of its revenue, which meant its price moved up sharply.
With institutional investors like Sequoia and Softbank, FTX quickly became the second-largest exchange in the world. Its daily volumes even touched $2 billion during its peak. The company also brought in Binance (the world’s largest crypto exchange) as an investor in its initial stages. Meanwhile, SBF developed a sort of cult following, and his net worth touched $17 billion at a point. His relationship with the media and young investors contributed immensely to FTX’s sudden growth.
SBF gave credit facilities to crypto lenders like Voyager and BlockFi when they were struggling to survive. He even sponsored F1 teams and entered politics.
Once FTX became popular, Sam Bankman-Fried bought out Binance’s stake in his company in 2021. Reports indicated that SBF may have feared strict regulatory action against Binance and wanted to part ways with it. Binance was paid $2.1 billion for selling the stake in FTX— partly in cash and the rest in FTT tokens.
So What Went Wrong?
Since Sam Bankman-Fried established FTX, he had convinced everyone that the firm had no links with Alameda Research. However, this doesn’t seem to be true. A report published by Coindesk on Nov. 2 claimed there was an unusually close relationship between the two entities.
The report stated that Alameda held FTT tokens at low prices (worth billions). Thus, when FTT’s prices increased, the value of Alameda’s assets also surged.
Using these highly inflated tokens as collateral, Alameda reportedly started borrowing money from various “unknown” entities. It has also been alleged that FTX transferred tens of billions of customer funds as loans to Alameda.
Thus, a fall in FTT’s value could severely hurt both firms due to their shared ownership.
Many started raising concerns about FTX’s financial health, risk management, and liquidity.
FTX vs Binance
Even though Binance supported FTX during its rise to the top, both firms have been bitter rivals. FTX has often threatened Binance’s dominance as a crypto exchange.
Earlier, we mentioned that Binance held FTT tokens. The company’s CEO, Changpeng Zhao (CZ) had been waiting for a perfect time to get back at SBF for his hostile comments on Binance. And this is what he did on Nov 6:
Binance’s position in FTT was around 5% of the total— worth around $580 million. Over the span of 2-3 days, $6 billion worth of FTT was withdrawn by investors, and the token crashed more than 90%! CZ was also vocal about the fact that FTX did not have enough cash reserves to process withdrawals. Eventually, FTX had to pause withdrawals on its platform due to a liquidity crunch (a lack of cash or easily convertible-to-cash assets).
(Source: CoinMarketCap)
If FTT’s price fell, Alameda Research’s balance sheet would be emptied in an instant. It would severely harm the firm, and the effect would spread to FTX, especially if it had loaned customer deposits to Alameda.
Recent Developments
In an interesting turn of events, CZ came to the rescue of FTX (well, sort of). On Nov 8, Binance’s CEO announced that the company would acquire FTX amidst its liquidity crisis. They even signed a non-binding agreement, intending to fully acquire FTX.com. However, CZ immediately pulled out of the deal the next day as rumours grew about FTX’s damaged balance sheet.
On November 11, FTX filed for Chapter 11 bankruptcy protection in the US., in a move that included its US platform and Alameda. Venture capital firm Sequoia marked down its $150 million investment in FTX to $0! Most investors were not aware of FTX’s related party dealings with Alameda. Softbank also had a $100 million exposure in the crypto exchange. A Reuters report has claimed that at least $1 billion of customer funds had vanished from FTX! To make matters worse, FTX was reportedly hacked, with more than $600 million stolen from its crypto wallets.
The U.S. Securities & Exchange Commission (SEC) and the Justice Department are investigating the serious allegations against FTX. The company and its CEO are definitely in deep trouble.
FTX’s collapse has raised serious concerns about the future of the crypto industry. It continues to face an uphill battle to regain the trust of retail investors across the globe. We’ve already seen crypto firms like Celsius and Voyager collapsing amidst a brutal “crypto winter”. Will FTX’s clients get their hard-earned money back? What are your thoughts on this entire issue? Let us know in the comments section of the marketfeed app!
Binance to acquire rival FTX amidst liquidity crunch
Binance has agreed to buy rival crypto exchange FTX, an outcome that followed days of speculation that FTX and Alameda Research faced a liquidity crisis. Concerns over FTX’s financial health reportedly triggered $6 billion of withdrawals in just three days. “Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books,” said FTX founder Sam Bankman-Fried. FTX’s native token FTT has lost ~90% of its value this week.
To learn more about Binance’s takedown of FTX, click here.
Crypto prices today: Bitcoin falls 7.3%, ETH crashes 12%
Bitcoin is currently trading at $18,317.14, a decline of 7.3% over the previous day. Ethereum fell 12.8% over the last 24 hours to $1,291.2. Solana crashed 27% to $20.26, while Cardano is trading lower by 2.7% at $0.374. Avalanche (AVAX) fell 6.9% to $15.59. The global crypto market cap stands at $905.57 billion, a 7.8% decline over the previous day. The crypto market has been rocked by the near collapse of FTX.
Amid Tuesday’s crypto crash, leading U.S. exchanges Kraken and Coinbase reported connectivity issues. Both exchanges said the issues were affecting their website and mobile services. Coinbase faced outages across its Coinbase.com, Pro, and Prime platforms. Trading became fully operational on both exchanges after a few hours.
Dubai presses for crypto firms to open offices
Dubai is heavily recruiting crypto companies to establish themselves in the emirate. However, its Virtual Assets Regulatory Authority (VARA), a dedicated regulator for the industry, is yet to release a comprehensive regulatory framework that companies can use to create or launch products. Officials have now assured local companies that the framework will be launched by the end of the year.
NTT Docomo to invest up to $4 billion in Web3
Japanese mobile operator NTT Docomo intends to invest up to $4.1 billion to concentrate on Web3 technology. It also intends to establish a Web3-focused company in 2023. NTT Docomo highlighted the following four crucial web3 enabling features: security, a cryptocurrency asset exchange, a blockchain wallet, and token issuance.
Crypto exchange Gemini expands to 5 more European nations
Crypto exchange Gemini has expanded its offerings to five more European countries, bringing its presence on the continent to 12 nations. Traders in Croatia, Cyprus, Hungary, Romania, and Slovenia can access the over 100 cryptos available on the platform. Gemini will accept euros and pounds.
Crypto prices today: Bitcoin falls 4.5%, ETH down 5%
Bitcoin is currently trading at $19,841.79, a decline of 4.47% over the previous day. Ethereum fell 4.95% over the last 24 hours to $1,493.33. Solana crashed 10.99% to $28.03, while Cardano is trading lower by 4.07% at $0.386. Avalanche (AVAX) fell 7% to $16.86. The global crypto market cap stands at $981.56 billion, a 4.5% decline over the previous day.
Investors withdraw millions from FTX as Binance begins liquidating FTT token
After Binance CEO Changpeng Zhao declared that his company is liquidating its holdings of FTX’s native exchange token FTT, mass withdrawals from FTX have accelerated. Weekly stablecoin outflows from FTX stood at a whopping $451 million. Meanwhile, Binance has seen net inflows of more than $411 million over the same period.
Bank of Korea tested NFT trading, remittances with CBDC: Report
As per reports from a local media outlet in South Korea, the Bank of Korea (BoK) has developed and tested a program that facilitates cross-border remittances by linking different central bank digital currencies (CBDC) from other countries. The central bank had recently completed a 10-month experiment into a digital South Korean won. It also tested the use of its CBDC to purchase non-fungible tokens (NFTs).
Ribbon Finance launches options exchange on Ethereum
DeFi derivatives protocol Ribbon Finance has launched a “high-performance” options exchange called Aevo. Built on Ethereum, the first iteration will only offer ETH options. It will offer other cryptos (including Bitcoin) in the coming months.
[Options are financial contracts that give traders the ability to buy or sell an asset at a given date at a specific price. They are often used as a hedge against volatility, as they can guarantee a price for a specific asset.]
Crypto prices today: Bitcoin, ETH falls 7%
Bitcoin is currently trading at $18,695.51, a decline of 7.41% over the previous day. Ethereum is down 7.9% over the last 24 hours to $1,274.32. Solana fell 7.5% to $32.04, while Cardano is trading lower by 7.13% at $0.428. Avalanche (AVAX) fell 7% to $16.88. The global crypto market cap stands at $913.61 billion, a 6.03% decline over the previous day.
Robinhood taps Polygon for Web3 wallet beta launch
Robinhood announced the launch of its beta Web3 wallet and allowed 10,000 waitlisted customers to participate in the testing phase. The application will let users trade crypto with reportedly “no network fees” and earn yield by connecting with other decentralized applications (dApps). Robinhood has selected Polygon as its exclusive blockchain partner for the platform.
FTX President Brett Harrison resigns
Brett Harrison, president of FTX US, is stepping down from his role but will stay on in an advisory capacity at the crypto exchange. The announcement comes a month after the Federal Deposit Insurance Corporation (FDIC) said one of Harrison’s tweets contained misleading claims that stocks purchased through FTX were FDIC insured.
McLaren Racing unveils crypto-inspired car
Formula One (F1) team McLaren Racing unveiled a crypto-inspired look for its racing cars at an event in Singapore, ahead of next week’s Grand Prix. The move is part of a planned partnership with the crypto exchange OKX. McLaren said the design represented the emergence of new technologies in Asia such as crypto and the broader Web3 sector.
FTX wins bid to buy Voyager Digital’s assets out of bankruptcy
Crypto exchange FTX won the bidding war to acquire the assets of bankrupt Voyager Digital. The agreement is valued at about $1.4 billion, comprising an ‘additional consideration’ worth about $111 million and the $1.3 billion market value of all the crypto on the bankrupt platform. Crypto lender Voyager Digital filed for bankruptcy in July.
Crypto prices today: Bitcoin, ETH up 7%
Bitcoin is currently trading at $20,188.98, an increase of 7.46% over the previous day. Ethereum is up 7.41% over the last 24 hours to $1,383.34. Solana rose 7.7% to $34.74, while Cardano is trading higher by 4.6% at $0.461. Polkadot (DOT) jumped 8.62% to $6.77. The global crypto market cap stands at $972.32 billion, a 5.78% increase over the previous day.
Crypto lender Nexo hit with enforcement actions from 8 states
State securities regulators in California and several other states took action against Nexo Group (the parent company of crypto lender Nexo), calling the company’s Earn Interest Product an unregistered security. “These crypto interest accounts are securities and are subject to investor protections under the law,” said the California Department of Financial Protection and Innovation (DFPI) in a press release.
Nearly $1 million in crypto stolen during Ethereum ‘vanity address’ hack
According to blockchain security firm PeckShield, crypto worth $950,000 was stolen in an attack using a vanity-address generator called Profanity. The hackers took 732 $ETH on Sep. 25 before moving the funds to the U.S. government-sanctioned crypto mixer Tornado Cash. A “vanity address” is a crypto address with defined parameters created by the users of the address.
Disney’s latest job posting hints at major plans for NFT, crypto adoption
The Walt Disney Company posted a job listing for a principal counsel specializing in non-fungible tokens (NFT) and decentralized finance (DeFi). This hints at the company’s broader Web3 expansion across the Disney ecosystem. The position would provide guidance on global NFT products across its business branches, including Disney Media & Parks, Experiences, and Products.
SEC claims all of Ethereum falls under US jurisdiction
The U.S. Securities & Exchange Commission (SEC) claimed that Ethereum transactions take place in the United States as Ethereum nodes are “clustered more densely” in the U.S. than in any other country. The SEC argument is found within a Sept. 19 lawsuit against crypto researcher and YouTuber Ian Balina.
It was alleged that Balina conducted an unregistered offering of Sparkster (SPRK) tokens when he formed an investing pool on Telegram in 2018.
Crypto prices today: Bitcoin up 5.6%, ETH rises 6%
Bitcoin is currently trading at $19,502.37, an increase of 5.6% over the previous day. Ethereum is up 6.11% over the last 24 hours to $1,369.76. Solana rose 5.29% to $32.6, while Cardano is trading higher by 3.19% at $0.45. Polkadot (DOT) rose 3.8% to $6.37. The global crypto market cap stands at $937.46 billion, a 4.02% increase over the previous day.
WazirX delists USDC stablecoin
Indian crypto exchange WazirX announced it would delist USD Coin (USDC), Pax Dollar (USDP), and TrueUSD (TUSD). It would auto-convert users’ existing balances on those three stablecoins into BUSD, the stablecoin developed by Binance. The exchange said the move was meant “to enhance liquidity and capital efficiency for users.”
UK Financial Regulator issues consumer warning against FTX
The UK’s Financial Conduct Authority (FCA) has issued a consumer warning against crypto exchange FTX for operating within the jurisdiction of the United Kingdom without authorization. FCA stated that firms that have not registered and adhered to the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations of 2017 are at risk of being subject to its criminal and civil enforcement powers.
South Korea requests Interpol’s help in Terraform Labs probe
South Korean prosecutors have asked Interpol to issue a fugitive alert for the founder of Terraform Labs, Do Kwon, as they investigate a $40 billion crash of the firm’s crypto (LUNA). Recently, a court issued arrest warrants for Kwon and five other people connected to Terraform Labs as prosecutors investigate allegations of fraud and financial crimes.
Binance US is the latest major crypto exchange to launch Ethereum staking on its platform. Users can now stake the second-largest crypto by market cap and earn rewards at a starting rate of 6% annual percentage yield (APY). The company’s competitors Lido and Coinbase currently offer 3.5% and 3.25% APY, respectively, on staked ETH.
Crypto prices today: Bitcoin up 2.4%, ETH rises 7%
Bitcoin is currently trading at $19,255.34, an increase of 2.4% over the previous day. Ethereum is up 7.04% over the last 24 hours to $1,626.24. Solana rose 4.32% to $32.44, while Cardano is trading higher by 2.39% at $0.474. Uniswap (UNI) rose 4.3% to $6.10. The global crypto market cap stands at $975.66 billion, a 3.75% increase over the previous day.
Celsius has been insolvent since 2019: Vermont Regulator
Vermont state officials have asked for broader powers to investigate Celsius. They have alleged that the troubled crypto exchange artificially inflated the price of its CEL token at the expense of retail investors going back over three years. “Excluding the company’s Net Position in CEL, liabilities would have exceeded its assets since at least February 28, 2019,” said Vermont assistant general counsel Ethan McLaughlin.
Voyager Digital to auction off assets next week
Bankrupt crypto broker Voyager Digital will auction off its remaining assets next week (Sept 13). Around 22 parties were in meaningful discussions to place a bid for Voyager’s assets as of early August, according to the group’s legal team. Voyager has also been working to return some money to customers. On August 5, the New York bankruptcy court handling the case approved a proposal to return $270 million to affected customers.
GameStop partners with crypto marketplace FTX
GameStop Corp announced a partnership with crypto exchange FTX US to increase its presence in the cryptocurrency space. The company will start selling FTX gift cards at some of its stores as part of the partnership. Earlier this year, GameStop launched a digital wallet and said it would enable transactions in a marketplace it is building for gamers to buy, sell, and trade non-fungible tokens (NFTs).
Crypto lender Nexo has launched a spot, margin, and futures trading platform for retail clients with the launch of Nexo Pro. The platform aims to offer retail clients access to institutional-grade aggregated liquidity with no minimum funding requirement. The product has been rolled out to the five million Nexo clients with up to a 50% discount on standard fees.
South Korean city Busan signed an agreement with crypto exchange FTX to develop blockchain-based businesses in the coming months. This partnership is in line with the city’s broader plans to become a global blockchain and financial hub. Busan City and FTX will work together to develop and promote various blockchain-focused businesses and establish the Busan Digital Asset Exchange.
Crypto prices today: Bitcoin, ETH falls 1%
Bitcoin is currently trading at $20,204.46, a decline of 1% over the previous day. Ethereum is down 0.94% over the last 24 hours to $1,573.41. Solana fell 1.91% to $32.17, while Cardano is trading higher by 0.2% at $0.454. Avalanche (AVAX) has fallen by 3.56% to $19.52. The global crypto market cap stands at $986.23 billion, a 0.8% decline over the previous day.
OpenSea adds Polygon support to expand features
NFT marketplace OpenSea announced the integration of the layer two scaling solution Polygon into its Seaport protocol implementation. The most important new feature is the ability to use the native token of the Polygon network, MATIC, to list and buy on OpenSea. In the coming months, OpenSea will be adding support for Klaytn and other Ethereum virtual machine (EVM)-compatible chains as well.
U.S. Congressional Committee probes Coinbase, FTX, Binance on fraud prevention
A U.S Congressional Committee has sent letters to the leading crypto exchanges in the U.S., requesting “information and documents” showing how each company is working to combat crypto-related fraud. Coinbase, FTX, Binance, Kraken, and KuCoin received a four-page letter requesting all documents related to crypto fraud since 2009.
The Federal Trade Commission estimates crypto fraud will con victims out of a whopping $1 billion in 2022 alone.
Japan’s FSA proposes tax breaks for crypto
Japan’s Financial Services Agency (FSA) proposed easing corporate tax rules for crypto assets and lighter levies for individual stock investors. Companies could be exempted from paying taxes for paper gains on crypto coins that they hold after issuing them. The move supports Prime Minister Fumio Kishida’s “New Capitalism” vision, which seeks to boost the world’s third-largest economy. He has offered support to help the country’s Web3 businesses grow.
The Australian govt. announces plans to “token map” the country’s digital asset sector as an initial step in creating new regulation for cryptos. It would become the first country to catalog the number, type, and underlying code of available cryptos as part of a wider effort to protect investors. More than one million Australians have interacted with cryptos since 2018, according to the Australian tax office.
Crypto prices today: Bitcoin, ETH up 1%
Bitcoin is currently trading at $21,340.3, an increase of 1% over the previous day. Ethereum is up 1.1% over the last 24 hours to $1,585.29. Solana rose 2% to $35.65, while Cardano is trading higher by 0.4% at $0.452. Polygon (MATIC) is up 1.6% to $0.796. The global crypto market cap stands at $1.01 trillion, a 0.74% increase over the previous day.
FDIC hits FTX with cease-and-desist over false statements
The Federal Deposit Insurance Corporation (FDIC) has issued cease-and-desist letters to five crypto companies, including FTX US, for making “false representations” that their products were FDIC-insured. The firms have 15 days to remove the “false and misleading statements” from their websites and social media accounts. They also have to send written confirmation to the FDIC.
Creditors object to bankrupt Voyager paying out bonuses
Creditors of bankrupt crypto lender Voyager Digital Holdings are objecting to the company’s request for funds to payout staff bonuses. They said the employees are already “well-compensated.” The creditors’ objection came after Voyager submitted a motion on Aug. 2 to ask a judge to approve an employee retention plan that cost up to $1.9 million.
SEC Chair calls crypto firms to comply with securities law
In a weekend op-ed to The Wall Street Journal, SEC Chairman Gary Gensler renewed his call for crypto firms to “comply with securities law.” He highlighted crypto lending platforms’ freezing of accounts and recent bankruptcies that have left investors beholden to legal proceedings. “There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology,” he wrote.
GameStop announced a digital wallet that allows gamers to send, receive, store and use virtual currencies and NFTs across decentralized apps. The wallet will also allow users to buy and sell NFTs on GameStop’s upcoming NFT marketplace, which is expected to launch by the end of July.
Crypto prices today: Bitcoin, ETH falls 3.5%
Bitcoin is currently trading at $29,363.5, a 3.5% decline over the previous day. Ethereum fell 3.4% over the last 24 hours to $1,982.4. Solana fell 6.6% to $49.7, while Cardano is trading lower by 4.8% at $0.519. Avalanche (AVAX) crashed 8.8% to $29.33. The global crypto market cap stands at $1.26 trillion, a 3.4% decline over the previous day.
FTX held acquisition talks with Webull, Apex, Public.com: Report
FTX has reportedly kicked off acquisition talks with at least three brokerage startups— Webull, Apex Clearing, and Public.com. The move could mean that FTX is making another serious push into stock trading. All three companies are registered brokerages with the Financial Industry Regulatory Authority (FINRA). This means that they can buy and sell securities on their own or on clients’ behalf.
Magic Johnson launches NFT collection on NBA Top Shot
Basketball legend Earvin “Magic” Johnson is the latest athlete to jump into the digital art market. He has launched “The Anthology: Magic Johnson” NFT collection on NBA Top Shot. The collection will drop on June 7. It will comprise 1,600 NFT packs that include moments from his career, with a price tag of $399 per pack.
‘India needs regulation before investments scales up’: Binance APAC Head
“Blockchain startups are what garnered the attention of Binance and many global tech experts and investors in India,” said Leon Foong, Head of APAC at Binance. He believes the Indian market has some fundamental competitive advantages— a very sizeable market and a large number of well-trained engineers. He further said a clear, progressive, and pro-innovation regulatory framework is necessary to boost investments in the crypto space.
Panama President Laurentino Cortizo said he may veto a recently approved bill that would allow citizens to use crypto as a form of payment in the country. “I have to be very careful if the law has clauses related to money laundering activities or anti-money laundering activities,” he said. The bill establishes pivotal concepts about crypto, blockchain, and virtual asset service providers.
Crypto prices today: Bitcoin up 2.0%, ETH up 2.7%
Bitcoin is currently trading at $30,115.86, a 2.9% increase over the previous day. Ethereum rose 2.79% over the last 24 hours to $2,018.06. Solana fell 1% to $51.26, while Cardano is trading higher by 1.23% at $0.526. XRP rose 5.13% to $0.429. The global crypto market cap stands at $1.27 trillion, a 2% increase over the previous day.
Crypto crash will have limited impact on U.S. household wealth and labor supply: Goldman Sachs
The global crypto market lost over $300 billion last week and about $1.7 trillion over the past seven months. However, the impact on U.S. household wealth, spending, and the labor supply are likely to be limited, according to a Goldman Sachs report. U.S. households own about one-third of the global crypto market or about $423 billion as of Thursday. Crypto holdings account for only 0.3% of their net worth.
FTX expands into stock trading
Crypto exchange FTX will now allow select customers to trade stocks and exchange-traded funds on its popular trading app. It plans to expand the functionality to all American customers in the next few months. FTX plans to offer commission-free stock trading, like most major US online brokerage firms.
India plans to introduce reverse charge tax on foreign crypto platforms: Report
According to a Forbes report, the Indian government is planning to introduce a “reverse charge” on virtual digital asset investments on overseas platforms. The move will be part of the latest round of crypto regulations to be implemented in the country. A reverse charge is an indirect tax obligation that falls on the recipient of goods or services rather than the supplier.
Essentially, Goods & Services Tax (GST) will fall on the investor, not the service provider, when an Indian investor acquires services from a domestically unregistered crypto exchange.
