Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
After LUNA’s collapse and UST’s de-pegging from the USD, DeFi insurance protocol InsurAce (INSUR) says it has already processed almost all the 173 submitted claims from those with cover related to ANC, MIR and UST and will pay out $11 million. InsurAce caused a stir when it shortened the claims period from 15 days to seven for the affected parties, but claimed it had the right to do so and that it was necessary to prevent further losses. Currently, INSUR is trading at $0.28 (down 6.68% in the last 24 hours).
A new draft law has replaced an earlier bill that introduced a one-year tax and customs amnesty for crypto miners in Russia, with provisions for a smaller tax burden removed for fear of potential losses for the state budget. On the other hand, the new rules do not require mining operators to check the sources of their clients’ funds. This comes amid general consensus among Russian authorities that crypto mining in the country should be recognized as a business activity and therefore, regulated.
Assembleia da República (Portugal’s congress) has rejected two bills seeking to tax crypto, presented by left-wing parties Livre and Bloco. The ruling Socialist Party has not submitted any bill, though finance minister Fernando Medina announced last week that crypto will be taxed in the near future. According to Susana Duarte, an associated partner at Portuguese law firm Abreu Advogados, the new government policy will include a capital gains tax on crypto.
US Senator Ted Cruz is “incredibly bullish” on BTC — which he buys weekly — but is “more hesitant” to invest in other tokens as he understands them “less well”. He believes crypto will “change the world” and that “uncontrolled, decentralized currency is terrifying for those who want control of currency”. Additionally, Cruz thinks BTC has “incredible potential to benefit us on the energy front”, highlighting how energy used for BTC mining can be “instantly available” for other purposes as the rigs can be shut off in “a fraction of a second”.
Cruz may have a point: according to a recent report by ESG analyst Daniel Batten, BTC mining could actually reduce global carbon emissions by 5.32%. In fact, Batten called BTC mining the only “technologically feasible” way to reduce methane emissions. The report also addresses common misconceptions about BTC mining, and notes that if mining entities “aggressively” target leaked methane, BTC mining could avoid 0.15% of warming by 2045. You can read the full report here.
Layer-2 dex Injective (INJ) has partnered with Wormhole to add 10 new blockchains to its network, including Solana, Terra, Ethereum, Avalanche, Polygon and Oasis BSC. Protocol developers Injective Labs said this would enable users to transfer and trade assets across any chain integrated with Wormhole, and Injective could “serve as the primary gateway for cross-chain native assets from…prominent Layer-1 chains” to enter the ecosystem. Despite this, INJ’s price remains on a down-trend, having fallen 11.71% to $2.01 in the last 24 hours.
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