Crypto News Headlines (26-Jun-2023)

Bitcoin (BTC) futures markets are seeing the largest money flows in over a year as traders likely bet on price movements amid a flurry of crypto exchange-traded fund (ETF) filings.

Open interest, or the total number of unsettled contracts, on bitcoin futures increased to over $11 billion over the weekend to their highest level since May last year, when the then-behemoth Terra imploded.

Rising open interest either means that new money is flowing into the market or existing participants are increasing their allocation. The metric can be used as an indicator to determine market sentiment and the strength behind price trends.

The tax administration of Japan has provided an exemption to companies issuing cryptocurrencies under a revision of the corporate tax rules. A local crypto media report described the move as a step toward improving the business environment for the digital asset sector in the country.

Japan Tax Authority Gives Cryptocurrency Businesses a Tax Exemption

Japan’s National Tax Agency (NTA) has issued a notice clarifying partial revisions to the country’s corporate tax regulations. Under the new rules, unrealized gains from cryptocurrencies issued by companies will no longer be taxed.

The administration explained that such coins will be excluded from the market value evaluation of a company’s assets if certain conditions are met. While a number of other issues need to be addressed, the move can improve the business environment for companies working with cryptocurrencies, Japanese crypto news outlet Coinspot noted in a report.

Under the current Japanese law, if a company holds crypto assets, they will be taxed as unrealized gains at the end of a tax period. The rule puts a burden on crypto companies and hinders blockchain innovation, causing some of these entities to relocate overseas, many have pointed out.

Swiss authorities have reportedly frozen approximately $26 million in Bitcoin and other cryptos tied to Terraform Labs, its founder Kwon Do-hyeong, and other key figures within the company.

These crypto assets were stored in the Swiss-based digital asset bank Sygnum, according to a report from South Korean news outlet Digital Asset on Saturday, citing unnamed authorities and investigators.

Per Digital Asset, Swiss authorities followed requests from the U.S. federal prosecutors of New York and the Securities and Exchange Commission.

Decrypt has contacted the Office of the Attorney General of Switzerland and will update this article should we receive a response.

Bitcoin (BTC) exchange-traded fund (ETF) fervor is back with a raft of new applications and an increase in capital inflows from institutional investors.

On June 26, a surge of inflows to the ProShares Bitcoin Strategy ETF (BITO) — a Bitcoin futures fund — was observed by Bloomberg senior ETF analyst Eric Balchunas.

The fund had its largest weekly inflow in a year at $65.3 million with its assets topping $1 billion.

BITO was the first BTC-linked ETF in the United States and is one of the most popular among institutional investors.

Balchunas claimed BITO “pretty much has tracked Bitcoin perfectly,” lagging spot prices by 1.05% annually and has a fee of 0.95%.

The United Arab Emirates is becoming the next big focus for Binance in the wake of a slew of enforcement actions in the United States against the crypto exchange.

Speaking to Cointelegraph, Binance Dubai general manager Alex Chehade said the UAE is a prime destination for crypto businesses seeking a clear path forward and noted its friendly stance toward digital assets.

“Binance identified that the senior leadership of the UAE wanted to establish the region as a focal point for Web3. They’re trying to diversify away from fossil fuels and they see [crypto] as a great driver for doing so,” said Chehade

Ultimately, the clear crypto regulations in the UAE make the region attractive to exchanges like Binance, which is currently wrestling with legal disputes from regulators in the U.S., including the Securities and Exchange Commission, and the Commodities Futures Trading Commission.

Crypto exchange Bybit has gained a license for crypto exchange and custody services in Cyprus, the company said in a statement on Monday.

The Dubai-headquartered firm said the move shows its commitment to compliance with local rules. The license strengthens the exchange’s presence in the European Union (EU) after it faced regulatory scrutiny in Japan and exited Canada, and the U.K.

“This landmark is a testament to Bybit’s commitment to adhering to robust regulatory frameworks while expanding our global presence,” Ben Zhou, Bybit’s co-founder and chief executive officer, said in a statement. “We wholeheartedly support the regulatory objective of building a cryptocurrency industry that is both compliant, secure, and transparent.”

Over the past 48 hours, the cryptocurrency market’s worth has grown by an additional $30 billion. As of June 25, among the 9,941 cryptocurrencies listed on, the market cap stands at $1.24 billion – a 0.4% increase at 9:34 a.m. (ET) within the last day. This week witnessed bitcoin (BTC) soar by 15.7%, while ethereum (ETH) jumped by 10.4%. Apart from BTC, cardano (ADA) experienced the largest weekly gains among the top ten cryptocurrencies by market cap, amassing 11.3%.

Crypto Market Rises by $30B in 48 Hours — Bitcoin Cash Leads With 88% Weekly Gain

Bitcoin cash vs. the U.S. dollar on June 25, 2023, at 9:34 a.m. (ET).

In the past day alone, global crypto trade volume reached $38.62 billion; of this sum, $24 billion were paired with stablecoins. The most significant weekly gain was achieved by bitcoin cash (BCH), which rose 88.2% against the U.S. dollar. As of Sunday at 9 a.m., BCH is trading at approximately $202.35 per unit and claims the sixth-highest trade volume today with around $1.31 billion in transactions during the last day.

Japan’s National Tax Agency (NTA) has updated its corporate tax regulations, bringing clarity to the treatment of cryptocurrencies. Under the new rules, unrealized gains from crypto assets issued by companies will no longer be subject to the current 30% corporate tax, according to a notice released last week.

As explained by the NTA, crypto assets will be excluded from a company’s asset valuation based on market value if certain conditions are met.

More specifically, to benefit from the new tax exemption, a company must hold the coins continuously after the issuance, while the crypto asset itself is subject to transfer restrictions.

Until recently, Japanese companies were required to pay a set 30% corporate tax rate on holdings even if they haven’t realized a profit through a sale, according to Tokentax. This rule has been criticized for burdening crypto companies and impeding blockchain innovation, reportedly leading some entities to relocate abroad.

The Australian Treasury’s token mapping of digital assets will adopt a “tech agnostic” and “principles-based” approach in order to define crypto assets, according to a Treasury official.

Speaking to Cointelegraph on June 26 at the Australian Blockchain Week, Trevor Power, an Australian Treasury Assistant Secretary said the framework will be structured to easily classify tokens based on their “function” and “purpose.”

“The token mapping paper spends a lot of time talking about the token, the system, the value delivered for the very purpose of trying to structure whatever regulation such that it draws on those principles so then a token can be placed within that,” Power said, adding:

  “It’s trying to be tech agnostic. It’s not trying to be token specific.”

The CEO of the Securities and Futures Commission (SFC) of Hong Kong, Julia Leung Fung-yee, addressed Hong Kong’s embrace of Web3 regulation following the collapse of crypto exchange FTX in November 2022, stating that crypto trading is an important part of the virtual asset ecosystem.

During the speech, Leung reportedly explained that the new licensing system for virtual asset providers would ensure that investors are protected while considering the risks that financial institutions face. In her view, incorporating virtual assets providers into the regulatory system was the only way to embrace innovation and strengthen market trust after FTX’s bankruptcy.

Hong Kong used the FTX collapse to reduce regulatory risks associated with centralized exchanges. In December 2022 — less than a month after the exchange crisis unfolded — its legislative council included virtual asset service providers in the same legislation governing traditional financial institutions.