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Crypto Flipsider News – Bitcoin Holders’ ETF Approved, Tether Drama Continues, Binance to Settle in Ireland, South Korea to Tax Crypto, Russia to Control Retail Investors

Read in the digest:

  • SEC Approves ETFs of Companies that Hold Bitcoin, Including Tesla and Twitter
  • Tether Updates: Allegations of Funds in Chinese Debts, $1B Lent to Celsius, CEO Leaves Twitter
  • Binance Considers Ireland for “Decentralized” Regional Headquarters
  • South Korea to Tax Cryptos, Russia to Add Crypto Regulation

The SEC Approves ETFs of Companies that Hold Bitcoin, Including Tesla and Twitter

The crypto community may be one step closer to getting its first Bitcoin ETF with a new ETF approval for Volt Equity. A Bitcoin ETF has long eluded the crypto company, with Volt Equity being the closest to approval yet.

The Securities and Exchange Commission has approved a Volt Equity ETF that consists of companies with large amounts of Bitcoin in their portfolio. The SEC-approved Volt Bitcoin Revolution ETF includes the likes of Twitter, Tesla, PayPal, and MicroStrategy.

Through the Volt Bitcoin Revolution ETF, investors will be able to monitor companies that hold sizable Bitcoin portfolios or derive the majority of their profit/revenue from Bitcoin-related activities like mining, lending, or manufacturing mining equipment.

According to Tad Park, the CEO of Volt Equity, these companies are “Bitcoin revolution companies.” In addition, the ETF will include indicators that evaluate the current stock of Bitcoin against the flow of new Bitcoin mined that year.

Flipsider:

  • Although a step in the right direction, the approval for the first Bitcoin ETF in the United States is still pending

Why You Should Care

The approval of the Volt Bitcoin Revolution ETF comes amidst expectations in the crypto community that the approval of a true Bitcoin ETF would cause a price surge.

Tether Updates: Allegations of Funds in Chinese Debts, $1B Lent to Celsius, CEO Leaves Twitter

Tether has been synonymous with stablecoins because of its fame and demand. However, the team behind the stablecoin has never been too far from controversy.

Reports from a new investigation have roped Tether with debts of Chinese companies. The report explains that Tether has invested billions in short-term loans to large Chinese companies, using Bitcoin as collateral.

According to the investigation, Tether has also loaned $1 billion to Celsius Network, which was slammed with a cease-and-desist order over interest earned on certain crypto accounts in September. In June 2020, Celsius Network launched a $30 million funding round, and Tether was the lead investor.

In the midst of Tether’s intensifying controversy, the Twitter account belonging to Tether’s CEO, Jan Ludovicus van der Velde, has been deleted. His account was deleted or removed from Twitter after a publication on the company’s USDT reserves was released.

Flipsider:

  • Tether has officially responded to its critics, stating that all USDT tokens are fully backed and that there will always be a market for Tether

Why You Should Care

Tether is currently the most liquid stablecoin on the market and one of the drivers of the global adoption of cryptos.

Binance Considers Ireland for ‘Decentralized’ Regional Headquarters

Embattled crypto exchange Binance is considering moving its headquarters to Ireland as pressure from regulators intensifies. In September, Binance established three subsidiaries in Ireland.

Affirming the report, the CEO of Binance, Changpeng Zhao (CZ), explained that Binance is currently “in the process of establishing a few headquarters in different parts of the world.”

CZ also explained that the exchange has a decentralized structure and does not have “centralized” headquarters. Therefore, if the majority of its operations are moved to Ireland, it will merely serve as a decentralized regional headquarters for the world’s largest crypto exchange.

According to an Irish news outlet, Changpeng Zhao was listed as the director for the three subsidiaries: Binance (APAC) Holdings, Binance (Services) Holdings, and Binance Technologies.

Flipsider:

  • Binance’s move to become more regulatory compliant has caused the exchange to limit some of its services

Why You Should Care

The regulatory crackdown on Binance has caused it to move some of its services to more crypto-friendly regions.

South Korea to Tax Cryptos, Russia to Add Crypto Regulation

Weeks after crypto exchanges exited South Korea over failure to meet strict regulatory requirements, the nation’s Deputy Prime Minister and Finance Minister, Hong Nam-ki, announced that crypto profits will begin to be taxed starting in January of 2022.

According to Hong Nam-ki, personal crypto generated incomes above 2.5 million won ($2,100) will be subject to a 20% tax. To track crypto income, operational crypto exchanges must register with the government to report transactions as requested.

In the meantime, policymakers in Russia have been working on adding regulations to crypto investing. The policy is part of an extended move by the country to protect non-professional investors from rash crypto investment.

In September, the Central Bank of Russia announced that it would slow down payments of crypto exchanges to limit “unqualified” Russian investors from purchasing crypto emotionally.

Flipsider:

  • While Russia plans to launch a digital asset, holding undeclared crypto between $1,300 and $13,000 is an offense subject to fines and jail time.

Why You Should Care

As cryptocurrencies gain global acceptance, more countries are creating regulatory frameworks to control their use and protect their citizens.

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