3Commas Weekly Crypto Industry Updates August 9th, 2024

Let's discuss what has happened in the crypto industry in the new month of August following the second week of August 2024.

Russia legalises Bitcoin and cryptocurrency mining

Russia is putting less regulatory pressure on crypto mining following the Russian President's approval of the legislation to reduce its reliance on the United States dollar in international trade.

The law will take effect in November 2024. Crypto mining firms in Russia will be allowed to register through a state database to mine crypto. Small, individual miners can also mine digital currency without officially registering if their energy consumption remains below a certain threshold.

The bill also introduced a ban on mass cryptocurrency advertising inside Russia.

Why does it matter? There is less regulatory pressure on crypto in Russia which is a good development for the crypto ecosystem in Russia.

India confirms no immediate plans to regulate crypto transactions 

Chaudhary said, during a parliamentary meeting on August 5, that India has not conducted any study or research to understand the adoption level of cryptocurrencies among its citizens. 

“Crypto assets or Virtual Digital Assets (VDAs) are unregulated in India and the government does not collect data on these assets.”

Even under India’s crypto law, citizens are required to pay a 30% tax on unrealized crypto gains. 

In January this year, India banned several crypto exchanges due to noncompliance with local regulations, including Binance, KuCoin, Bitget, Huobi, OKX, Gate.io and MEXC.

Why does it matter? There are still some uncertainties regarding regulations for buying and selling crypto in India, and this creates a somewhat negative environment for growth and adoption. 

Asian Bitcoin buyer, Metaplanet secures 1B Yen loan to buy more Bitcoin

As reported earlier in July, the new Asian bitcoin buyer Metaplanet has acquired a total of 203.7 Bicoin. Metaplanet is looking to buy more Bitcoin.

Just two days after revealing plans to raise $70M via a stock rights offering, the Asian bitcoin buyer has taken a $6.8M loan from one of its shareholders to buy more Bitcoin.

Why does it matter? There is increasing interest from institutions looking to hold Bitcoin and this is a good development for growth and adoption. 

Valour to launch digital asset ETPs in Kenya

Crypto ETPs (Exchange Traded Products) similar to ETFs (Exchange Traded Funds) are coming to Kenya. Valour, a European crypto fund issuer is moving out of Europe to the green markets of Africa.

The crypto ETP fund issuer Valour has signed a memorandum of understanding with the Nairobi Securities Exchange (NSE) and financial instrument issuance platform SovFi on issuing and trading digital asset exchange-traded products (ETPs) on the NSE in Kenya. 

This new development will give more exposure to trading digital assets on traditional markets in Kenya and encourage the same across other Securities Exchanges in Africa.

What does it matter? The increasing interest in trading digital assets in Africa by institutions is a welcomed development for wider adoption of crypto.

Bitcoin holders bought around $23B BTC in the past 30 days

Onchain activity suggests that Bitcoin permanent holder addresses have accumulated nearly $23B in Bitcoin over the past month amid the market dump.

Around $22.8 billion worth, or 404,448 BTC, has moved to permanent holder addresses over the past 30 days according to Crypto Quant data.

Why does it matter? It highlights fundamental strength in Bitcoin, as large holders and institutional buyers seized the opportunity to buy the dip and accelerate their accumulation strategies. 

Conclusion: 

What we’re seeing is that across the world, governments and financial institutions that were previously not high on crypto have either become neutral or reversed their stances, and their influence on government regulators has led to many new regulations and policies favorable to the crypto industry. Even as the market waxes and wanes, crypto keeps marching forward.