Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Malaysia’s Ministry of Communications and Multimedia has proposed legalizing NFTs and crypto mining activities to “increase the youth’s uptake of cryptocurrencies”. Deputy communications and multimedia minister, Datuk Zahidi Zainul Abidin, said in Parliament that his ministry was exploring ways to drive youth involvement in digital assets, while acknowledging that crypto activities were under the purview of Bank Negara Malaysia (the country’s central bank) and Malaysia’s Securities Commission. This comes after Malaysian authorities’ crackdown on illegal crypto mining activities saw 1,000 BTC mining machines destroyed with a steamroller in July 2021 and 1,720 BTC mining machines seized 4 months later.
India’s Financial Bill 2022 has proposed a new section to the country’s Income Tax Act 1961, which will see gains from crypto transactions taxed at 30%, with losses being non-deductible. Pankaj Chaudhary, minister of state in the Ministry of Finance, added in Parliament that the bill “also proposes to define VDAs (virtual digital assets)”. At the same time, the Indian government is working on how to classify crypto under its GST law so it can levy tax on full transaction values; presently, 18% GST is levied only on crypto exchange services categorized as financial services.
US Federal prosecutors have said they are in plea negotiations with Ilya “Dutch Lichtenstien and Heather “Razzlekhan” Morgan, the New York couple recently arrested for the attempted laundering of $4.5 billion worth of stolen BTC. The prosecutors requested that a judge postpone this Friday’s status hearing until 4 May, in order to “facilitate…plea discussions between the parties” and give the prosecutors time to gather and present evidence against the couple to their attorneys. While the attorneys did not oppose the postponement, they have yet to comment on the filing. The couple will also be the subject of a Netflix series directed by Tiger King executive producer Chris Smith.
The crypto community is rallying around DeFiance Capital founder Arthur_0x after he suffered a hack on one of his hot wallets that lost him over $1.6 million in crypto and NFTs. Twitter users are trying to determine just how the hack happened and where the hacker gained access to Arthur_0x’s wallets, while NFT community member Cirrus has gone as far as to buy 2 of the stolen Azuki NFTs and return them to Arthur_0x at cost to “help him out”. Arthur_0x’s losses consist of 78 different NFTs — largely Azukis — from 5 collections, as well as 68 WETH, 4,349 stkDYDX and 1,578 LOOKS. After the hack, the attacker put up all the NFTs for bidding on OpenSea, and their wallet held 545 ETH (worth around $1.6 million) as of 7 AM (UTC).
The UK’s Advertising Standards Authority (ASA) has issued an enforcement notice to over 50 companies advertise crypto services, advising them to review their ads to ensure compliance with new regulations. The new guidance requires advertisers to state clearly that crypto is unregulated in the UK and that the “value of investments are variable and can go down”. Crypto ads also must not “state or imply that investment decisions are trivial, simple, easy or suitable for anyone” or “imply a sense of urgency to buy or (to) create a fear of missing out, or that investments are ‘low-risk'”. The companies issued the notice include those previously subject to ASA rulings, such as Coinbase, eToro, Luno and Crypto.com. They have until 2 May make sure their ads abide by the new rules, after whuch non-compliant advertisers will be reported to the Financial Conduct Authority (FCA).
Show me the money
According to data from Huobi Global, BTC continued to rise amid expanding volume today, trading at 41,000 for a short period before seeing a slight correction at the 43,400 resistance level. ETH observed a similar pattern, exceeding 3,000 for the first time in 2 weeks; daily charts show signs of an upward trend. Contracts-wise, Huobi Futures data show stable open interest in both BTC and ETH futures, with slightly decreased volume amid a relatively inactive contract market.