Crypto Morning: Bill that regulates cryptocurrencies in Brazil may leave the Chamber’s agenda; Bitcoin and Ethereum Rise

Charlie Taylor

With the regulation of crypto-assets in the focus of investors in Brazil and the United States, most cryptocurrencies operate in the blue this Wednesday (8). Bitcoin (BTC) is up 3.1% at $30,534.05 in the last 24 hours, according to data from CoinGecko. Ethereum (ETH) is up 2% to trade at $1,806.71. In Brazil, Bitcoin advances 4%, to R$ 148,851.21, according to the Bitcoin Portal Index (IPB). Other altcoins trade between losses and gains like Binance Coin (+2.3%), Cardano (+7.1%), XRP (+1.9%), Dogecoin (+0.7%), Polkadot (+0, 1%), Avalanche (+1.6%) and Shiba Inu (+0.1%). Despite gains in major currencies, the macroeconomic scenario continues to weigh on trading. Although US stock markets closed slightly higher on Tuesday (7), the World Bank revised downward its forecast for global economic growth from 4.1% to 2.9% this year and warned that “the risk” of stagflation is “considerable”. In addition, US Treasury Secretary Janet Yellen told the Senate Finance Committee that inflation is likely to continue accelerating. For his part, James Key, CEO of the Web 3 Autonomy Network protocol, told CoinDesk that Bitcoin’s previous bear cycles have reached a floor after falling 85% in periods of at least 18 months. The price of BTC has lost about 60% since its high last November.

Cryptocurrency Bill

Deputy Expedito Netto (PSD/RO), rapporteur of bill 4401/21, said in an interview with Valor that he requested the withdrawal of the PL that regulates the crypto-assets market from this week’s agenda. The deputy stated that he must reject the amendments to the text made by the Senate, such as the device that prevents exchanges and foreign intermediaries from operating in Brazil, with a deadline of 180 to adapt to the new rules. “There is no way to demand that. The deadline has to be the same for everyone.” The rapporteur also intends to exclude the highlights on asset segregation and taxation in mining activities. Even so, Expedito Netto hopes that the project will be voted on next week.

In an interview with Agência Estado, Julien Dutra, director of institutional relations at 2TM, the holding company that controls the Bitcoin Market, said that, in cryptocurrency trading, the principles of free enterprise must coincide with consumer protection, which avoids systemic risks in the market. “It is also important to prevent money laundering. Resource volume is too high. We don’t want to be known as the sector that launders money”, highlighted Dutra.

In the midst of discussions on regulation, the Civil Police and the Public Ministry of Minas Gerais confiscated more than BRL 1.5 million in cryptocurrencies from a group accused of deceiving investors in a financial pyramid scheme as a result of the “Merchants of the Temple” operation, launched in early May to dismantle companies that offered “extremely high-quality” financial services. illusory profitability”.

In the US, consumer protection groups criticized the bipartisan bill presented by Senators Cynthia Lummis and Kirsten Gillibrand. “The bill gives the (crypto) industry what it wants most: the Commodity Futures Trading Commission (CFTC) as its primary regulator (…),” said Dennis Kelleher, CEO of Better Markets, according to which the preference for the agency would be because it is the smallest and with the lowest budget.

A new report from the US Department of Justice advocates more international cooperation between surveillance agencies in the field of cryptocurrencies and blockchain. Sharing information and harmonizing anti-money laundering and “know your customer” rules were also proposed in the DOJ report.

US regulators want to overhaul the controversial Wall Street practice known as “order-flow payment,” whereby retail brokers earn billions of dollars a year selling client orders to the nation’s biggest trading firms. Cryptocurrency exchange FTX, which will debut in equity trading, believes the changes will bring transparency to the market, according to the Financial Times.

Digital currencies issued by central banks, so-called CBDCs, can result in a costly waste of time, according to the Center for European Reform. In the report “Why Would Anyone Use a CBDC?”, the think tank argues that the focus of EU regulation should be on making payments cheaper and more competitive.

A group of 20 international human rights activists wrote an open letter to US Congressional leaders advocating a “responsible” crypto policy that recognizes the role of technology in combating global “monetary colonialism,” according to The Block. The letter is a direct response to another manifesto by a group of 1,500 technology experts and academics calling for a “critical and skeptical approach” to the crypto industry.

In Japan, the agency that oversees digital assets is considering allowing cryptocurrency exchanges to list tokens without going through regulator monitoring, people with knowledge of the matter told Bloomberg. With the move, the agency wants to focus on oversight after the listing.

In the UK, the government plans to test blockchain technology for traditional activities like trading and settling stocks and bonds in the coming year, Gwyneth Nurse, director general of financial services at the Ministry of Finance, told Reuters.

Solana’s bet

Solana (SOL) still shows little variation on Wednesday, even after news broke that Solana Ventures and the Solana Foundation announced a $100 million fund for Korean startups from Web3. The funds will be used for investments and aid aimed at various companies in the sector in South Korea, but with a focus on games, non-fungible tokens (NFTs) and decentralized finance (DeFi), according to a statement. The news contrasts with the funding of DeFi projects. Data from The Block Research shows that dollar investments in this segment totaled US$ 176.30 million in May, the lowest level since September 2021.

Other highlights

Real estate tokens referring to a building in the city of São Paulo should be offered to investors abroad by the end of September, Helena Margarido, co-founder and head of cryptocurrency analysis at Monett, told E-Investidor. The launch will take place in a country – undisclosed – where the jurisdiction is more favorable to crypto-asset projects, which avoids the risk that the CVM will consider the token as a security offering, according to the executive. The round can raise between R$50 million and R$70 million.

Research published by Valor from the Brazilian Association of Financial and Capital Market Entities (Anbima) in partnership with Datafolha shows that Generation Z (between 16 and 25 years old) marks the digital turn in investments: about 40% of respondents in this age group use digital channels , such as bank and brokerage applications.

Mastercard announces this Wednesday (8) a partnership with Mercado Pago to act in the security of cryptocurrency operations through its CipherTrace blockchain risk analysis unit, Valor reported. Despite being a competitor of the card brand, the Mercado Livre payment vehicle will be a “great partner” in the cryptocurrency segment, said Estanislau Bassols, president of Mastercard Brasil.

PayPal reported on Tuesday (7) cryptocurrency users can now move funds off its platform — a long-awaited feature that will make the company’s offering even more similar to other popular crypto services.

Latin American cryptocurrency exchanges target products that offer income. The search for new clients, the reinvestment of raised funds and the growing interest of Latin American users in cryptocurrencies are some of the reasons for the high yield rates of regional exchanges like Bitso, according to a report by CoinDesk. Binance.US is also betting on this segment in the US to challenge rivals Gemini and Coinbase.

After terminating job offers already accepted by candidates, Coinbase seeks to redeem itself with a channel to help people affected by the decision. The Coinbase Talent Hub was created to connect professionals with recruiters and already has more than 300 candidates registered, according to The Block. Binance.US CEO Brian Shroder told CoinDesk that the exchange is willing to hire rejected candidates or employees fired by Coinbase.

Australian digital asset manager Cosmos Asset Management has partnered with Canada’s Purpose Investments to launch an Ethereum index fund for Australian investors, the Financial Times reported. The new Cosmos-Purpose Ethereum Access ETF, listed on Cboe Australia, invests directly in the Purpose Ether ETF, which is traded in Toronto and has total assets of $408 million since launching in April 2021.

And Citadel Securities is set to debut on the crypto ETF market when it gets the green light. “We will be ready if and when these products are approved, but we are taking a measured approach,” Kelly Brennan, head of the company’s ETF group, said in an interview with Bloomberg.

Citadel Securities would also have plans to develop a “cryptocurrency trading ecosystem” in partnership with Virtu Financial, as well as venture capital firms Sequoia Capital and Paradigm, a source familiar with the conversations told CoinDesk.

Grayscale Investment has hired the lawyer Donald Verrilli, who worked in the Obama administration, to prepare for the battle against the U.S. Securities and Exchange Commission if the agency rejects his request to convert a $20 billion Bitcoin fund into an ETF.

Felix Capital raised its fourth fund of $600 million at a time when falling values ​​of tech companies offer attractive opportunities to do business, according to Bloomberg. With the new fund, Felix’s committed capital doubles to more than $1.2 billion. The company also plans to increase investments in startups focusing on cryptocurrencies and blockchain.

Metaverse, Games and NFTs

After the rapid rise in NFT prices on NBA Top Shot, the “Moments” licensed by the US National Basketball Association, the platform is now facing a drop in monthly unique buyers, according to The Verge magazine. The average price of an NFT Top Shot on the Flow blockchain was just $17.1 in May, compared to $181.81 in February 2021, data from CryptoSlam shows.

Brazilian startup NFTFY this week launched the RockPool tool, which allows users to acquire non-fungible tokens in a collective purchase system, a kind of crowdfunding of NFTs, according to Exame.

Despite the initial stage, the metaverse could represent a revenue opportunity of up to $13 trillion and make a big impact not only on major tech players but also on cryptocurrencies, according to a Citi report released by CoinDesk.

The biggest football club in Portugal, Benficawill become the first in the country to debut in the cryptocurrency market by launching a fan token in partnership with Socios.com, according to Reuters.

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