In this news report we are going to mix it up with some of the top and most recent news stories from around the globe covering new regulations that are helping to cement not just Bitcoin's future in the finacial world but all cryptocurrencies.
Let's face it, if you are passionate about crypto and you are a BTC fanatic, then like us, you are no doubt in need of some good news. Bitcoin’s lack of movement over the past few weeks has been non-eventful with most of us wondering which direction it will head when it does pick up steam.
Well, the good news is that BTC and a flurry of other cryptos have picked up over the past few days making some positive movement as July 2020 comes to a close. And, while nothing is certain, it is hard not to credit the latest end of month rise to the stir of news reports over the past week confirming changes in regulations in countries across the globe.
We will be looking at how the US is moving closer towards legitimising crypto as a mainstream currency, Russia's not so passionate view of the crypto sphere, and we will also head over to Asia where the Philippines and South Korea are also hot topics!
Here are some of the top BTC and crypto news stories this July…
US Court Says Bitcoin is Real Money!
A US Federal Court ruling has offcially stated that BTC is a form of real money which has to be great news for investors.
Although, this was not a financial regulation ruling. Instead the ruling arose in a criminal lawsuit which happens to be the much-publicized Larry Dean Harmon money laundering case.
Harmon was a key operator of Helix which was an underground crypto trading service that operated on the darknet before it was shut down in 2017.
Without going into too much detail about the case itself, $311 million worth of BTC was exchanged using Helix. The defence claims BTC is not seen as ‘real money’ in the US, but the federal court has deemed otherwise which now means it is offcial - BTC is a form of real money in the US.
Bad news for Mr Harmon, but great news for crypto investors!
US Banks Can Offer Crypto Custodial Services
In the US, the OCC has officially announced that federal savings associations as well as US national banks, which there are 1,175 entities in the US, will now be able to legally offer crypto custodial services to potentially new as well as existing clientele.
Why is this major news?
If the US federal court is saying BTC is a form of real money, and now national banks and saving associations are offering crypto custodial services to customers, this looks very much like the legtimisation of cryptocurrencies into mainstream finance.
For all of us out there that have been waiting for BTC to become a mainstream currency, we can certainly take this piece of news as a massive leap forward!
BTC’s Dominance Is Slowly Dropping
On a slightly less positive note for BTC investors, although maybe not bad news for those with a diversified crypto portfolio, the last few weeks have seen the Bitcoin Dominance Index (BDI) drop.
1 year ago Bitcoin took up 66% of the cryptocurrency market share in terms of market capitalization. However, more recently it has lost ground by dropping to 61.5% in a matter of just a few weeks. This is mostly because of competing cryptocurrencies becoming more valuable.
Fear not, because despite this slight downturn, there is no need to panic or start shifting your BTC into other cryptos just yet. It is the first time BTC's BDI percentage has dropped to this level since June 2019. Furthermore, right now BTC is showing positive gains, so its worth holding on to see whether it can move past the $10k mark.
You may find ot news story BTC To Stay Between $6k and $10k Until 2021 interesting.
The Philippines Is Fully Geared Towards Crypto Investors
More good news for BTC and also cryptocurrencies in general, as yet another country has stepped up its game.
Just recently the Philippines took its total number of approved cryptocurrency exchanges to 16. These exchanges have all been given the go-ahead by the country’s The Banko Sentral ng Pilipinas (BSP) to conduct business.
This is great news for anyone involved in crypto as its another country jumping onboard the crypto bandwagon. In addition to this, it shows that crypto has become big business in the Philippines since its new regulatory framework drawn up in 2017 came into action.
The Philippines is not the only ASEAN member to boast several crypto exchange services. Thailand is another country in the region that sees the potential of cryptocurrencies with several exchanges now in operation in the Kingdom, and in the midst of the global COVID-19 pandemic, Malaysia approved a cryptocurrency exchange.
South East Asia is a booming region, and the success of cryptocurrency here will further bring cryptos into mainstream financial markets.
New Law in Russia Forbids the Use of BTC As a Goods and Services Payment Option
Not all news around the globe is rosy as Russia has thrown a spanner in the works as the country further frowns upon on the use of crypto.
Although investing in cryptocurrency and exchanging crypto for some financial transfers is still perfectly legal in Russia, the Digital Financial Assets (DFI) bill that bans the use of crypto for payment of goods and services is now in force.
The laws are quite confusing because you can still pay someone using their public key to transfer crypto. However, shops, eComm stores, and businesses will not be able to take payments or set prices using cryptos - something that many crypto fanatics in Russia were hoping for.
The setback for those hoping that BTC will go mainstream in Russia is actually quite severe while other countries around the globe appear to be gearing up for an increase in crypto commerce, Russia is closing its doors for the time being.
Harsh News for Crypto Investors in South Korea As Tax Levy Is Applied
Back to Asia and South Korea officially announced that any profits made from buying or selling crypto will be taxed in the same way income that falls under ‘other earnings’. The law means that the first $2,000 worth of profit in 'WON' will be tax-free, but any income above this amount will have a 20% tax levy.
The major blow for investors that are not South Korean citizens is that they will also be subject to the tax if they are using an exchange that falls under Korean regulatory laws.
There is no getting away with the tax levy either as the exchanges are expected to automatically cut these taxes form their customers’ profits.
It is great news to see the US leading the way in the crypto regulations arena which was once a minefield that most thought impossible to traverse. The US usually takes the lead in world financial issues and has been one of the pioneers in breaking down barriers to regulations so cryptocurrencies can finally become accepted mainstream currencies despite the fears of many critics.
Asia is also another region showing promise. Even the report that South Korea is taxing cryptos is good news because it means the country is now going to see cryptos as another source of income for its fiscal budget. The best way to read into this is that South Korea sees crypto as a financial tool that is not going anywhere.
There is also competition stirring between cryptocurrencies which is healthy for the crypto market as a whole. New cryptos are slowly creeping in and existing ones are starting to make their move. Although the concept of cryptocurrencies is still quite young, there are now more than a dozen well-known virtual currencies while just half a decade ago it was all ETH and BTC and nothing else.
For now, the future for cryptocurrencies is looking very strong and the market is more interesting for investors, traders, and commerce.