Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Beginning 1 May, the Indonesian government will tax capital gains income from crypto investments at 0.1%, and levy value-added tax (VAT) at the same rate on crypto purchases. Hestu Yoga Seksama, the Ministry of Finance’s tax regulations director, said these taxes would be imposed as Bank Indonesia (the country’s central bank) and the Ministry of Trade considered crypto a commodity, not a payment option or currency. Still, the VAT on crypto assets is far lower than the 11% levied on most goods and services in Indonesia, while the 0.1% capital gains income tax on crypto investments is the same as the tax on shares listed on the Indonesian stock exchange.
Global NFT sales fell by over 21% month-on-month, from $2.92 billion in Feb to $2.3 billion in Mar, which also marked a 53% dip from Aug 2021’s all-time high of $4.91 billion. This was despite a 493% year-on-year rise from Mar 2021, when global NFT sales totaled $387 million. This decline has also been attributed to BTC’s and altcoins’ bearish price movements, fewer unique buyers (a 28% drop from 879,261 in Feb to 630,461 in Mar) and transactions (a 19.8% drop from 6.8 million in Feb to 5.45 million in Mar), as well as lower average sales value (from $429.50 in Feb to $422.17 in Mar).
An internal policy paper by the European Central Bank (ECB) has raised concerns over privacy in the design of a European central bank digital currency (CBDC), as it states the bank will have access to transaction data needed to fulfill its functions. ECB board member Fabio Panetta has dismissed concerns of government surveillance, saying the ECB has “no commercial interest” in the use of such data, unlike for-profit organizations. However, experts have criticized this assertion, with HEC Paris affiliate professor and crypto tech expert Marina Niforos saying “a sovereign concentrating that kind of power may not only be for a benign purpose”. She added that while the state had “less commercial motivation”, there might still be “a danger of misappropriation and misuse” of such data.
After the Ronin bridge hack barely week ago, Chinese crypto analyst Colin Wu has noticed several transactions in the last few hours from the Ethereum address suspected of being involved in the hack. The first transaction saw 1,000 ETH (worth around $3.5 million) moved to another address, followed by a few transactions of 100 ETH. All these transactions went to the Tornado Cash Ethereum mixing service, which is favored by crypto hackers and scammers as it offers private, anonymous transactions for ETH and ERC-20 tokens by breaking the on-chain link between source and destination addresses.
Singapore-based Japanese private equity fund ACA Group will buy a majority stake (worth up to $370 million) in bitFlyer Holdings, operator of one of Japan’s largest crypto exchanges. ACA is expected to sell bitFlyer after increasing its corporate value, though the latter has said “nothing has been decided at the moment”. The acquisition was negotiated by shareholders independently, backed by bitFlyer co-founder Minefumi Komiyama, who has a 13% stake in the company. Seisuki House, which also holds a 13% stake, is expected to participate, indicating a total stake of just over 50% will be sold. Whether bitFlyer founder and CEO Yuzo Kano, who holds a 40% stake, will join the sale has not been confirmed.
Show me the money
BTC fell below $46,000 on Saturday but surpassed the $47,300 point on Sunday, marking a 2.6% rise from 24 hours earlier. Since then, it has fallen slightly to around $46,700. ETH followed a similar pattern, falling before rising above $3,550, signifying an approximately 3% increase over the same period. Major altcoins saw mixed movement, with DOGE rising by around 5% at least once over the weekend and SOL and ADA seeing a respective 3% and 2% increase. LUNA, on the other hand, saw a decline of about 2%.