Crypto Scoop: Crypto Market Cap Slips Below $800 Billion Temporarily

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While BTC trades at $16,000 and ETH at $1,100, several countries pursue crypto initiatives.

In the aftermath of the FTX crash, while top cryptocurrencies try to recover losses, several countries pursue crypto initiatives. In this edition of the crypto scoop, we review:

  • Crypto market cap slips below $800 Billion
  • Cardano’s project initiatives
  • Kenya’s crypto regulation proposal
  • Crypto adoption in Japan, El Salvador, and Russia

Crypto Market Cap Slips Below $800 Billion Temporarily

While the crypto market rallied to recover from the crypto winter caused prompted by the FTX crash, a major crypto whale sale had prices of top cryptocurrencies plunging downwards. 10,000 BTC worth $165 million, traced to the 2014 Mt Gox hack, was moved after 7 years on November 23rd. 

The crypto market cap slid below $800 Billion for the first time since December 20220, as BTC dropped below $16,000 and ETH below $1,200. However, the total crypto market cap rebounded as bitcoin rose again to $16,000 and ETH above $1,100. 

With cryptocurrencies trading at their lowest in the last few months, Capriole Fund founder Charles Edwards reports an aggressive sale rate by miners over the last three weeks. American billionaire venture capitalist Tim Draper has reaffirmed his faith in crypto despite the bear market. He predicted in June that bitcoin would hit $250,000 by the end of 2022. While this isn’t feasible with BTC currently trading below $17,000, the billionaire iterates his belief that Bitcoin will hit $250,000. He asserted the market would recover when people, especially women, start using cryptocurrency for daily shopping; bitcoin will become more mainstream. 

Billionaire investor Bill Ackman also asserted with conviction that crypto is here to stay despite the current challenges in the market. He mentioned the recent events only emphasise the need to increase oversight and remove fraudulent actors in the space.

Cardano Announces A Launch Date For Its Stablecoin

This week, two of Cardano's projects, Ardana and Orbis, announced the end of their project development. Ardana was proposed as a first all-in-one stablecoin built on Cardano and Orbis, a layer 2 solution utilising zkSNARK roll-up technology to aid scaling and higher throughput. Ardana and Orbis cited low funding as a reason for suspending operations. 

While Ardana and Orbis were suspended, the Cardano community celebrated the announcement of Cardano’s Algorithmic stablecoin’s launch date. Cardano announced it's Algorithmic Stablecoin DJED will launch in January 2023. ADA and SHEN, the reserve token for the smart contract, will be used for the stablecoin's backing and over-collateralization. DJED is Cardano’s attempt to create a price-stable digital asset backed by ADA – the network’s native cryptocurrency.

Kenya Proposes Crypto Income And Capital Gains Tax. 

According to a recently proposed capital markets amendment bill, cryptocurrency owners in Kenya will be required to pay taxes on gains. The bill also mandates that cryptocurrency owners provide Kenya's Capital Markets Authority with information such as "the amount of proceeds from the transaction, any costs related to the transaction, and the amount of any gain or loss on the transaction" if it becomes law.

In addition to taxation, the bill suggests that owners of digital assets divulge information about when and how they acquired their cryptocurrency to Kenya's Capital Markets Authority (CMA).

According to the International Monetary Fund (IMF), African crypto markets require more regulation. The monetary fund cited the collapse of FTX and its impact on cryptocurrency prices as one of the reasons countries in the region should embrace regulation, saying that it is "prompting renewed calls for greater consumer protection and regulation of the crypto industry."

IMF further contend that "risks from crypto assets are evident" and "it's time to regulate" to strike a balance between reducing risk and enhancing innovation.

Russia, Japan and El Salvador Pursue Crypto Adoption Initiatives

Russia has expressed intentions to build a "national cryptocurrency exchange." The Duma, the lower house of the Russian parliament, has been in talks with market participants about changes to the country's current cryptocurrency legislation "On digital financial assets," according to local media. The central bank will first receive a presentation of the amendments, which would establish the legal foundation for a national exchange.

According to a Wednesday Nikkei report, the Bank of Japan will participate in some experiments regarding a digital yen. According to the report, the BoJ will begin working with private banks and other organisations in the spring of 2023 to identify any issues with deposits and withdrawals. The analysis will also ensure that a central bank digital currency (CBDC) can function in the event of a natural disaster and locations without internet access. The BoJ has joined a growing list of central banks worldwide exploring CBDCs.

El Salvador is moving forward with plans to issue bitcoin-backed bonds, as evidenced by the national assembly's consideration of a bill to regulate digital securities. Maria Luisa Hayem Breve, the nation's minister of economy, delivered the bill to the Legislative Assembly of El Salvador. 

According to the 33-page document, the bill aims to create a National Digital Assets Commission that would oversee the regulation of companies that issue digital assets, as well as other service providers and other parties involved in the "public offering " process" of digital securities.