Cryptocurrency World Digest for the week of 4/09/23

In our digest, we took a look at some important crypto industry news over the past week:

1. Cryptocurrency mining may be recognised as an industry in Russia
2. Bitcoin falls below $26k after ETF applications postponed
3. Trading volume on OpenSea hits two-year low
4. More than 2,000 companies fall victim to data breaches in the U.S.
5. OKX plans to enter India’s cryptocurrency market

Now for more details. Reading time: 6 minutes.

1. Russian data centre operator BitRiver has appealed to Minister of Industry and Trade Denis Manturov with a proposal to recognise cryptocurrency mining as an economic activity and establish an industrial code for such enterprises in the All-Russian Classifier of Economic Activities (OKVED). This will help to properly establish taxation and the development of mining. The proposal was supported by the head of the State Duma Committee on Financial Market Anatoly Aksakov, and the initiative has already been sent to the Russian government for approval. Establishing the code means recognising the existence of a market for cryptocurrency mining and establishing control over it. The developed bill on mining also regulates the taxation of this sphere. According to Deputy Aksakov, the document may be adopted already in the autumn session, then it will work from next year.
   According to experts, the legalisation of cryptocurrency mining can bring significant revenue to the Russian budget, as well as help to combat threats in this sphere. However, in order to establish the OKVED code for mining, it is necessary to regulate this sphere with quantitative and qualitative characteristics of the type of activity. Relevant draft laws are being discussed at the government level.
2. The bitcoin exchange rate continues to fall, dropping below the $26k mark after the US Securities and Exchange Commission (SEC) delayed a decision on applications for spot bitcoin ETFs until October 2023. Ethereum’s exchange rate also fell 3.2 per cent in the last 24 hours. Earlier in August, the SEC began reviewing applications for spot bitcoin-ETFs from cryptocurrency and traditional finance companies such as BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital. The applicants believe that a spot bitcoin-ETF will help increase retail investment in the first cryptocurrency and save investors the trouble of registering wallets or having to buy BTC directly. The regulator’s new deadlines for Wise Origin, Galaxy and WisdomTree to review applications are 17 October, while Valkyrie’s deadline is two days later. Bitwise now has a deadline of 16 October.
3. OpenSea, the largest non-fungible token (NFT) marketplace, experienced a decline in trading volume in August, reaching its lowest levels since April 2021, according to data from Dune Analytics. While transaction volume on the platform fell to $106 million, the number of active Ethereum users decreased by 125,000 over the month, reaching its lowest level in a year. These changes can be attributed to an increase in gas fees and a change in market sentiment. In addition, OpenSea was unable to expand into other blockchain networks including Polygon, where transaction volume totalled just $7.02 million in August and the number of users fell to 96,000, both of which were the lowest in nine months. These changes have caused OpenSea to lose its market leadership, giving way to marketplace Blur. In addition, the most well-known and sought-after NFT collections, such as CryptoPunks, Bored Ape Yacht Club, Mutant Apes and Azuki, have seen their minimum prices drop significantly. Commissions for NFT creators have also hit a two-year low due to some trading platforms no longer making them mandatory, and NFT trading volumes have plummeted.
4. More than 2,000 companies, including government organisations and large corporations, were victims of an unusual security incident in the US. For five months, the credentials of these companies were in the public domain. The leak was discovered by Cybernews experts who reported that data from the Pentagon, DOJ, FBI, NASA, as well as corporations such as Intel, IBM, Boeing, Pfizer, Ford, Toyota, Volkswagen, Amazon and Coca Cola had been in the public domain since 31 January 2023. The leaks could have been used to access corporate networks to introduce ransomware or steal internal documents. The US National Security Council (NSC), which allowed the leak, fixed the problem after being contacted by Cybernews.
5. Cryptocurrency exchange OKX is planning to enter the Indian market. This will happen as part of the company’s service expansion strategy. As CoinDesk notes, about 200,000 cryptocurrency wallet users on the exchange are currently in India, which is only 5% of Web3 users in the country. To successfully enter the Indian market, the exchange plans to study the local community and work with residents to find out where value can be added. Recall that in early 2021, there was talk of a possible ban on cryptocurrencies in India, and in November, the government intended to ban most “private currencies.” Currently, cryptocurrency is not banned, but also not legalised. Authorities have imposed strict taxes on digital currency trading and anti-money laundering rules. India’s central bank continues to oppose the legalisation of cryptocurrencies while promoting its digital currency. OKX does not yet intend to open an office in India, but the exchange is looking for local employees to implement its plans.

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