Will Bitcoin surge? The news of May 25 – 31 from around the crypto world by BTCMEX.
Bitcoin has been trading at the range or $9,000 sideways the whole week. Is it ready for 10K yet? The price of BTC had seen a substantial rally before the halving, as the price topped at $10,100. Since then, the BTC price has been hovering inside a sideways range between $8,200 and $10,000. The chart is showing a breakdown of the rising wedge at $9,800, after which support was found at $8,600. That’s important, as that shows another higher low. The critical fact is that the market has been providing these higher lows since the crash on March 12. Overall Bitcoin price is up 25% in May.
South Korea is looking for ways to improve crypto regulations by proposing a new amendment to the existing tax law. An official from the Ministry of Information and Technology clarified that the principle of taxation would be executed under the logic of “taxes where income is located.” According to the new suggestions, rules for profitable sales of cryptocurrencies as well as profits from national crypto mining projects will be included. Initial coin offerings are still banned across the country, but the ministry also mentioned including the profits generated by ICOs.
Meanwhile Russian lawmakers suggested fines up to 2 million rubles ($27,800) and prison terms of up to 7 years for illegal usage of cryptocurrencies. Fines are to be implemented for organizing illegal turnover of digital assets or providing means to issue digital currency from within Russian territory. The same acts can be considered criminal violations if they cause major damage to citizens, organizations or the state. These will incur larger fines, along with up to five years hard labor or seven years of prison time.
According to the officials, Russia is also looking for ways of seize digital assets. While Russia is facing disagreement over the legal status of Telegram and crypto, both continue operating in the country. State Duma proposed to cancel the ban on Telegram’s encrypted messenger in the country on May 26.
Grayscale buying tremendous amount of BTC
An independent crypto researcher Kevin Rooke has pointed out that the crypto fund manager Grayscale has bought 1.5 times the amount of Bitcoin being mined since the third halving event. Rooke estimated that Grayscale had been buying Bitcoin at a rate equal to between 33% and 34% of new supply during the first quarter of 2020, having accumulated 60,762 BTC over 100 days.
Grayscale explained some fundamental differences in the nature of central bank digital currencies (CBDC) and Bitcoin (BTC) in its recent report.
“CBDCs are sometimes viewed as synonymous to, or as replacements for, digital currencies like Bitcoin, but they represent a meaningful departure from the decentralized protocols inherent to many cryptocurrencies. CBDCs attempt to upgrade payment infrastructure while Bitcoin is an attempt to upgrade money. If CBDCs gain traction, they may actually bolster the value proposition for Bitcoin and other digital currencies.”
“Binance is a scam”
On May 25, five angry Binance users protested outside the exchange’s office in Shanghai, which doesn’t exist, according to the company’s officials. They complained about FTX tokens and other issues. Protesters were stopped by security guards but took photos in front of the building with posters saying “Binance is a scam”.
Binance deny’s having an office in Shanghai, claiming that since the closure of its last office, which held more than 100 people, the majority of exchange’s Chinese staff work remotely.
Binance was criticized earlier for acquiring CoinMarketCap, which has introduced new metrics intended to combat fake volume. Concerns were raised around the new metrics, which improved ranking for Binance exchange on the site.
Calibra and Ton undergo rebranding amid regulations
Calibra wallet picks a new name – Novi – to avoid confusion with Libra. The new name comes from the Latin words “novus” for “new” and “via” for “way”. Novi representative said:
“Our hope is to introduce an early version of Novi when the Libra network is available and we have secured all the licenses or approvals necessary to offer the services.”
At the same time, TON community decided that the abbreviation will not stand for “Telegram Open Network”, but will be called “The Open Network” from now on. Telegram’s version of TON is no longer moving forward, as the company dropped the project earlier this month.