Crypto Flipsider News – USTC Spikes 50%; G20 Crypto Rule; Portugal’s Crypto Tax; Singapore License for Coinbase; Binance in on Twitter Deal

Read in the Digest:

Terra Classic USD (USTC) spikes 50% as Circle’s USDC falls to yearly low.

G20 to review crypto regulatory framework.

Portugal proposes 28% tax on short-term crypto gains from 2023.

Coinbase receives digital-assets license to operate in Singapore.

Binance reaffirms $500m commitment to Elon Musk’s Twitter buyout deal.

Terra Classic USD (USTC) Spikes 50% as Circle’s USDC Falls to Yearly Low

TerraClassic USD (USTC), the algorithmic stablecoin infamous for its $18.5 billion implosion, is today’s biggest gainer following the release of its much-anticipated re-peg proposal by developer Tobias Andersen.

Since the proposal’s submission, USTC has been on the rise, gaining 50% over the last 24 hours. The price of USTC shot from $0.0396 to $0.06012, pushing its market cap back above $580 million.

The 24 hour price chart for TerraClassic USD (USTC). Source: CoinMarketCap

The USTC’s collapse in May saw most of its funds moved to other stablecoins, with Circle’s USD Coin (USDC) being one of the biggest beneficiaries. The event resulted in the market cap of USDC rise from $48 billion to an all-time high of $56 billion in July.

However, since Binance (and later WazirX) announced last month that it would be auto-converting exchange balances of USDC into its own BUSD stablecoin before delisting it, Circle’s stablecoin has lost 12% of its market cap, which now stands at $46 billion.

The year-to-date market cap for USD Coin (USDC). Source: CoinMarketCap

Flipsider:

Circle, a neo-bank and the issuer of the USDC stablecoin has announced its intention to become “a full-reserve national commercial bank.”

Why You Should Care

The proposal, which has received praise from members of the community-run TerraClassic, outlines multiple potential routes through which the failed stablecoin can regain its $1 peg.

G20 to Review Crypto Regulatory Framework

On Monday, October 10th, the Organization for Economic Cooperation and Development (OECD) submitted a framework for global tax reporting for cryptocurrencies to “The Group of Twenty” (G20) industrialized countries.

The ‘Crypto-Asset Reporting Framework‘ (CARF) proposed by the OECD looks to ensure transparency in crypto by implementing a system for the automatic annual exchange of transaction info with the jurisdictions of resident taxpayers.

In its meeting, scheduled to be held over Wednesday 12th and Thursday 13th in Washington, D.C, finance ministers and central bank governors of the G20 nations will review the 100-page framework that seeks to increase the transparency in crypto.

The OECD stated in the official release that the framework “will ensure that the tax transparency architecture remains up-to-date and effective” if it is implemented.

Flipsider:

In a separate development, the EU has passed its Markets in Crypto Assets (MiCA) regulation bill, which is expected to impose stricter rules upon crypto companies.

Why You Should Care

The OECD is seeking to regulate the crypto industry against a backdrop of the rapid adoption in the use of crypto-assets for investment and financial purposes.

Portugal Proposes 28% Tax on Short-Term Crypto Gains from 2023

Portugal could lose its status as a “crypto tax haven” due to a provision in the country’s proposed 2023 budget draft, submitted to Portugal’s Parliament on Monday 10th, which includes the imposition of a 28% capital gains tax on cryptocurrency gains made within one year.

The 450-page, macroeconomic strategy and fiscal policy report recommends subjecting free crypto transfers to a 10% tax rate, while commissions earned by crypto brokerages would be taxed at a rate of 4%.

The proposal represents a follow up to the announcement by Portugal’s Finance Minister Fernando Medina in May, in which it was stated that cryptocurrency profits could soon become subject to the country’s capital gains tax laws.

If the Portuguese parliament approves the proposal in the weeks to come, crypto gains would become subject to taxation not only for only commercial and professional activities, but also for the mining and issuance of cryptocurrency.

Flipsider:

According to the draft, cryptocurrency gains realized after one year would remain untaxed.

Why You Should Care

If Monday’s draft budget is approved, the move could see a reduction in the activity of crypto traders in Portugal, replicating the situation in India.

Coinbase Receives Digital-Assets License to Operate in Singapore

The Singapore arm of U.S.-based crypto exchange Coinbase has been granted in-principal approval by the Monetary Authority of Singapore under the to provide regulated digital token products and services in the city-state ‘Payment Services Act’.

The license grants Coinbase approval to provide regulated digital token products and services in the island state. Coinbase announced in a blog post that the exchange is working on plans to launch its full suite of retail, institutional, and related ecosystem products in the country.

Coinbase further underlined that, following its approval, the company would be looking to expand its fiat capabilities by partnering with local platforms as a way to provide digital payment token services in Singapore.

Since the launch of the Singapore licensing regime in 2019, MAS has offered in-principle approval and licensing to just 17 of the 180 digital payment token platforms that applied, with Coinbase, Crypto.com and DBS Vickers among them.

Flipsider:

Former Coinbase executives Karthik Kalyanaraman and Ola Muse raised $5.3 million from a seed round of funding for their infrastructural startup, Scale3 Labs.

Why You Should Care

The regulatory license is thought to be key to Coinbase’s goal of pursuing a global presence, having recently expanded into Australia.

Binance Reaffirms $500M Commitment to Elon Musk’s Twitter Buyout Deal

A recent court filing has revealed that Elon Musk, the Founder of Tesla and the world’s richest man, intends to follow through on the agreement to acquire Twitter, which he first proposed earlier this year.

Following the shocking announcement, a spokesperson for Binance, the world’s biggest crypto exchange, reaffirmed that the exchange remains commited to backing Elon Musk’s Twitter buyout deal.

In May, Binance announced that it was prepared to commit $500 million to the deal. The spokesperson outlined that the exchange will stay true to the earlier agreement, contributing the same amount to the Twitter acquisition deal, which is expected to be completed soon.

Elon Musk’s pro-crypto stance has resulted in other major crypto firms show interest in supporting the deal. Sam Bankman-Fried, the CEO of FTX, was recently revealed to have been in contact with the Tesla CEO in order to offer his participation in the deal as a financer.

Flipsider:

The confirmation comes just days after Binance suffered a loss of more than $100 million as a result of a breach into its blockchain network, the Binance Smart Chain.