Around the Blockchain with Huobi Learn (17 May 2022)

Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
The Reserve Bank of India (RBI) has reportedly issued yet another warning on crypto adoption, which it claims will result in the local economy’s “dollarization”. The RBI attributed this possibility to nearly all crypto being dollar-denominated and issued by foreign private entities. Concerned that USD-denominated crypto would take market share away from the INR, it added that crypto would “seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country”.
Portugal’s reputation as a crypto tax haven is about to change. Finance minister Fernando Medina said the country was developing a framework for taxing crypto income gains, though a specific date for the implementation of such legislation and the taxation models to be used have not been confirmed. Medina added that there could not be “gaps” leading to “capital gains in relation to the transaction of assets” not being taxed but assured the public that the framework would not chase crypto investors away from Portugal.
In collaboration with Iran’s central bank, the country’s Ministry of Intelligence has reportedly blocked 9,219 bank accounts belonging to 545 individuals, due to suspicious foreign currency and crypto transactions. The total transaction value blocked was over $2 billion, but the ministry did not reveal anything about the accounts themselves or how much of this value was in digital currency. This action is the latest in Iran’s crypto crackdown, after authorities froze bank accounts belonging to over 700 “illegal” foreign exchange traders in the country.
S&P Global’s ratings division has established a DeFi strategy group to help build its decentralized market framework for investors. To be led by chief DeFi officer Chuck Mounts, the group aims to develop S&P’s analytics and risk assessment capabilities for both TradFi and DeFi clients. Mounts will work closely with the company’s newly appointed head of DeFi transformation, Charles Jansen, on the upcoming framework.
Nomura, Japan’s largest investment bank, will set up a new subsidiary by 2023 to help institutional clients invest in crypto and NFTs. The subsidiary, which will be led by Nomura’s head of wholesale digital operations Jez Mohideen, will provide a variety of crypto services through a staff of around 100 people. While it will be established overseas, its board will consist of Nomura transplants as the company acquires Web3 and blockchain talents.
After LUNA’s recent dramatic crash, Terraform Labs CEO Do Kwon has proposed a plan to “fork” the Terra blockchain to reverse this collapse. This would involve creating a new blockchain alongside a billion LUNA, to be distributed among current LUNA and UST holders and used to fund the development of new Terra apps. Referencing the famous 2016 Ethereum fork (when 3.6 million ETH was stolen from a DAO), Kwon also proposed removing UST from the Terra ecosystem, saying that “UST peg failure” was Terra’s “DAO hack moment”. LUNA owners must vote on the plan tomorrow; if passed, the fork will occur on 27 May.
Show me the money
After seeing continual declines of late, BTC has recovered slightly, rising 3.05% in the last 24 hours to $30,602.90. Within the same period, ETH rose 3.35% to $2,087.64, while other major altcoins also saw increases: ADA was up 3.46%, SOL 4.84% and AVAX 1.78%. Similarly, meme tokens SHIB and DOGE saw a respective increase of 3.12% and 2.61% respectively over the past 24 hours. Terraform Labs’ LUNA and UST, however, remain on a downward trajectory: the former saw a 19.25% decline to $0.000188 and the latter fell 12.86% to $0.129298 in the last 24 hours.
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