BTC Markets celebrates 10 years in crypto.

Koinly tax webinar coming up on June 14th.

Ripple Labs has $1 billion in cash reserves.

We’re turning 10: celebrating a decade of success!

On June 2nd, BTC Markets celebrates 10-years in the crypto market. This remarkable journey wouldn't have been possible without our loyal clients, and we are truly grateful for your unwavering trust and support. 

From a humble startup, we have grown into a prominent force in the Australian cryptocurrency landscape. Thank you for being an integral part of our journey and choosing us to be a part of yours. 

Stay tuned for some exciting announcements coming up over the next few weeks as we invite you to join in our birthday celebrations.

BTC Markets CEO, Caroline Bowler discusses our philosophy. Discover the vision driving our success and shaping the future of cryptocurrency in Australia. Read more 

Are you interested in testing new features for the BTC Markets mobile app?

, you can stay informed and contribute to testing the latest features being developed. Currently, we are working on the highly anticipated AUD and crypto withdrawals feature.

'Crypto tax livestream: what you need to know for 2023'.

Join us for an exclusive live stream event on Wednesday, June 14th from 11am - 12pm. We have teamed up with tax software provider 

 to talk through tax obligations and reporting for crypto trading in Australia.

 The Germany GfK Consumer Climate report will be released.

 The United States Durable Goods Orders, Core PCE Price Index Personal Spending, and Personal Income data will be released. United Kingdom Retail Sales month on month figures due out.

: China’s NBS Manufacturing PMI, Japan Consumer Confidence, France, Italy and Germany’s Inflation Rate, India, and Canada GDP Growth Rate due out.

 The United States Job Openings report to be released.

The Reserve Bank of Australia (RBA) announced that it has no immediate plans to 

 as part of quantitative tightening measures. David Jacobs, head of domestic markets at the central bank, stated that the current approach of allowing bonds to mature and be repaid is appropriate for the time being. 

The RBA had accumulated approximately AU$360 billion of government bonds during the pandemic to support the economy, and its balance sheet had swelled as a result.

Market observers are currently debating whether the Reserve Bank of Australia will implement 

one or two additional interest rate hikes

. However, an even more significant concern lies in the duration of elevated interest rates.

Compelling factors suggest that both inflation and interest rates are likely to remain at higher levels for an extended period.

In another development, the Reserve Bank of New Zealand (RBNZ) signalled the 

, leading to a sharp decline in the New Zealand dollar and bond yields. 

The RBNZ raised its official cash rate by 25 basis points to 5.5%, but surprised markets by suggesting that it had considered keeping the rate on hold. The central bank now forecasts rate cuts to begin in the third quarter of next year, indicating a shift towards a more dovish stance.

Economists are divided on whether this marks the end of the tightening cycle, with some expecting further rate increases due to higher government spending and inflation, while others anticipate rate cuts later this year.

US Fed officials expressed uncertainty about how much more 

 in the future and many focused on the need to retain optionality, minutes from the FOMC meeting in May showed.

Several participants noted that if the economy evolved in line with their current outlooks, then further policy firming may not be necessary. However, other participants 

 would likely be warranted if the progress in returning inflation to 2% would continue to be unacceptably slow.

The Fed raised the fed funds rate by 25bps to a range of 5%-5.25% during its May meeting, marking the 10th increase and bringing borrowing costs to their highest level since September 2007.

Talks between US President Joe Biden and Republican leader Kevin McCarthy regarding the 

, with some progress noted. However, reaching a final agreement is pending. Failing to raise the debt limit would have significant economic implications, and time is running short with the June 1st approaching.

The possibility of a US debt default raises concerns about global uncertainty and managing until June 15th would require finding approximately $290 billion in cash. Considering limited resources in the first two weeks of June, unexpected changes or heavy outflows could deplete the small buffer, increasing default risks.

price inflation dropped to 8.7% in April 2023

, attributed to lower electricity and gas prices but remaining above the 2.0% target. Housing and utilities saw significant decreases, while food and non-alcoholic beverage prices remained high. Core inflation excluding food and energy reached its highest level since March 1992, while 

, driven by food prices and acceleration in various sectors like transport, clothing, furniture, medical care, and education. Housing and miscellaneous sectors experienced slight easing, and fuel and utility charges declined. Core inflation remained above the Bank of Japan's 2% target for the 13th consecutive month.

showed mixed results in April 2023. While the index rose slightly, it fell short of market expectations. Manufacturing and construction sectors improved, but the construction industry's assessment of the current situation hit a low point. Service providers and traders experienced reduced morale due to weaker sales. Manufacturing PMI and softened price pressures indicate a lack of momentum in Germany's largest economy.

During the last trading week, the cryptocurrency market continued its downward trend for the third consecutive session. Bitcoin closed the week at US$26,747, representing a slight loss of 0.63%. In contrast, Ethereum managed to gain 0.32% and closed at US$1,804.91, while XRP outperformed with an impressive 7.57% gain, closing at US$0.4575. Litecoin stood out as the top performer of the week, achieving a double-digit gain of 10.40% and closing at US$92.18.

Looking at the year-to-date performance, Bitcoin maintained its dominance, currently trading at US$26,104and holding strong with a57.76% gain. Ethereum’s yearly gain sits at 48.54%, currently trading at US$1,776 whilst Cardano sits on a gain of45.52%, trading at US$0.3579. XRP has remained stable with a gain of 32.89% on the year, trading at US$0.450 and Litecoin secured a19.58% gain, trading at US83.84.

Bitcoin’s market capitalisation closed in the green, gaining0.12%, and currently sitting at 47.69% dominance. The total crypto market capitalisation closed in the red for a third week, losing 0.74%, valued at US$1.061 trillion. 

(*source: Tradingview, as of 25/05/2023 at 12:00pm AEST).

DeFi exchange Uniswap to launch on Polkadot (DOT).

 network via the Moonbeam parachain, following a successful governance vote. This move comes after educational organisations, Blockchain at Berkeley and Blockchain at Michigan, championed the initiative.

Uniswap's deployment on Polkadot will introduce its 

, offering improved capital efficiency, flexible fee structures, and an enhanced user experience. Moonbeam, as a parachain running on Polkadot, enables the deployment of Uniswap's smart contracts.

The decision to collaborate with Moonbeam was driven by its high DeFi activity and EVM-friendly architecture, which allows for seamless integration of Ethereum virtual deployments. Polkadot's multichain ecosystem, with its scalable and interconnected parachains, offers an alternative to centralised exchanges, empowering users with greater control over their assets.

This development further expands Uniswap's reach and supports Polkadot's goal of providing performance, security, and interoperability to its users.

 for extended periods, according to Glassnode data. Currently, 68% of Bitcoin has been held for at least a year, with 55% held for two years and 40% held for three years. This trend suggests that investors are opting to hold onto their Bitcoin rather than sell, which is viewed as a bullish signal. 

In contrast, the stock market has experienced a shift towards shorter holding periods. While the data indicates potential future price increases and a possible supply squeeze, it may not provide reliable short-term price signals. Glassnode's ‘Long-Term-Holder Supply’ metric has also reached an all-time high, reflecting coins acquired after the FTX failure maturing into long-term holder status. Additionally, Glassnode's ‘Liveliness’ metric reveals a decline in spending behaviour, reinforcing the notion of HODLing among investors.

These trends indicate a strong belief in the long-term value of Bitcoin and could contribute to its price appreciation in the current market cycle.

 are supporting the Canton Network blockchain project, aiming to streamline financial markets. This initiative aligns with the concept of Web3, which envisions a decentralised internet based on blockchain technology.

The Canton Network aims to address key challenges faced by Bitcoin, Ethereum, and other cryptocurrencies, such as privacy, data control, cross-chain interoperability, and scalability. By connecting trading platforms of major institutions like Deutsche Börse and Goldman Sachs, the Canton Network offers potential solutions to these issues.

Ethereum co-founder cautions against burdening the consensus layer.

Vitalik Buterin, the co-founder of Ethereum, has cautioned against 

 with additional responsibilities beyond its core functions. In a recent blog post titled "Don't overload Ethereum's consensus," Buterin emphasised the importance of preserving the blockchain's minimalism and avoiding high systemic risks that could arise from using the consensus for other purposes.

While there have been proposals to utilise Ethereum's social consensus for tasks like price and data oracles, re-staking initiatives, and layer-1 soft forks, Buterin highlighted the potential fragility and vulnerabilities that come with extending the blockchain's core functionality. He warned that each extension increases the core's fragility, making it more susceptible to bugs and intentional attacks.

Buterin emphasised that expanding the duties of Ethereum's consensus increases costs, complexities, and risks for validators. He advised caution when it comes to application-layer projects that risk expanding the scope of blockchain consensus beyond verifying the core Ethereum protocol rules. Instead, he encouraged preserving the chain's minimalism, exploring non-slippery slope re-staking approaches, and assisting developers in finding alternate strategies to achieve their security goals.

The transition from proof-of-work to proof-of-stake in September 2022 marked a significant milestone for Ethereum's consensus mechanism. With the recent release of staked Ethereum for withdrawal through the Shapella upgrade, validator roles and security risks on the world's largest smart contract network have come under heightened scrutiny.

Ripple Labs has $1 billion in cash reserves ready.

Ripple Labs, led by CEO Brad Garlinghouse, has hinted at 

plans to deploy $1 billion from its cash reserves

 to expand the company's offerings in the crypto industry. Speaking at the Dubai Fintech Summit, Garlinghouse emphasised that Ripple aims to evolve beyond being solely a payments platform and liquidity provider. He mentioned that the blockchain technology has four key elements: liquidity, compliance, custody, and tokenisation, and Ripple intends to explore these areas.

Garlinghouse stated that the company would consider acquisitions in markets that are friendly towards blockchain technology. Notably, he mentioned the United Arab Emirates (UAE) and Switzerland as countries providing regulatory clarity for entrepreneurs to invest. Ripple sees these markets as potential targets for expanding its services.

Ripple already possesses over $1 billion in cash reserves, which it plans to invest in various growth initiatives, 

 and enhancing its internal infrastructure. The recent acquisition of Metaco, a Swiss-based digital assets custody and tokenisation firm, is a testament to Ripple's expansion strategy. By acquiring Metaco, Ripple gains expertise in areas crucial to blockchain technology.

The expansion plans of Ripple reflect its determination to explore new jurisdictions with regulatory clarity, such as Switzerland. This move is in response to the regulatory challenges faced by the company in the United States. Additionally, Ripple aims to establish a presence in London and increase its footprint in the Middle East and North Africa (MENA) region through the opening of a new office in Dubai.

Hong Kong regulator to allow retail trading of crypto assets.

Late Monday night, Hong Kong’s Securities and Futures Commission said it would 

allow retail investors to trade certain crypto

 assets beginning next month on registered trading platforms. The move was widely expected, with the announcement marking the end of a request for public comment it put out in February on its proposed regulatory requirements around retail trading in crypto.

The new guidelines are part of a broader effort of Hong Kong to become a global crypto hub. That ambition is in sharp contrast with China, which banned crypto trading in 2021, as well as the U.S. where the regulatory stance toward crypto has turned hostile since the collapse of FTX.

Hong Kong’s Securities and Futures Commission has already licensed two digital asset platforms, and it’s likely some are already actively trading offshore, said Noelle Acheson, economist, and author of the “Crypto is Macro Now” newsletter.

Owen Lau, an analyst at Oppenheimer, called Hong Kong “pretty aggressive” for trying to become a crypto hub. “It will continue to capture the attention of the community and attract more firms to set up offices in Hong Kong,” he said. “It is hard to gauge the exact impact, but it has a long-term effect on capital flow and talent movement.”

Bitcoin blockchain witnesses surge in activity.

The Bitcoin blockchain is experiencing a surge in activity, with daily transactions reaching a 

 this month. Bitcoin's dominance in the cryptocurrency market has also grown, accounting for 44% of the overall market share. However, amidst this activity, a new breed of tokens called BRC-20 has emerged, built on the Bitcoin blockchain itself.

BRC-20 tokens have gained significant attention, with nearly 25,000 of these experimental coins minted this year. This surge in token creation has led to a substantial increase in daily transactions, surpassing 531,000 on average over a seven-day period. While BRC-20 tokens currently serve mainly speculative purposes like meme coins, their growing popularity indicates a broader interest in Bitcoin as a foundation for developing new coins and applications, previously associated with more modern blockchains like Ethereum and Solana.

Some investors and developers view Bitcoin's blockchain as a safer long-term option for token creation and application development, considering the recent challenges faced by other blockchains and the flight from riskier assets. Bitcoin's reputation as the oldest and most trusted network adds to its appeal.

Despite the frenzy around BRC-20 tokens, their value has been volatile. The total market value of these tokens exceeded $1 billion in early May but has since dropped to $446 million. BRC-20 tokens are created using ordinals theory, which allows data to be inscribed on each Satoshi, the smallest unit of Bitcoin. While these tokens currently lack significant utility, blockchain experts see the trend as promising in terms of expanding the range of products built on the Bitcoin blockchain.

The rapid creation of BRC-20 tokens has raised concerns, particularly regarding the impact on Bitcoin's original use cases. Gas fees, or transaction costs on the Bitcoin blockchain, have skyrocketed, reaching a near all-time high of $17.8 million per day. The median transaction fee has also spiked, reaching as high as $30.91. This congestion has caused delays in transaction confirmations, with users waiting over 30 hours in some cases.

EU implements crypto transaction traceability regulations.

The European Union (EU) has taken significant steps in regulating the traceability of crypto-assets, mandating service providers to collect and disclose sender and beneficiary information for every transaction, regardless of its size. These measures aim to combat illicit activities and form part of a comprehensive legislative package to enhance anti-money laundering and counter-terrorism financing rules within the EU.

 require crypto asset service providers to ensure the traceability of transfers, facilitating the identification and prevention of suspicious transactions. These rules apply to all crypto asset transactions conducted by the service providers, reinforcing the EU's commitment to combat financial crimes associated with cryptocurrencies.

In a groundbreaking move, the EU has approved the Markets in Crypto Assets (MiCA), the world's first comprehensive regulatory framework for crypto assets. These regulations are expected to become law by July this year and are setting a precedent for other countries, to follow suit in developing their own regulatory frameworks.

As a result of these regulations, European crypto startups, particularly those in Zurich and Berlin, have seen an increase in venture capital (VC) funding. Despite an overall decrease in VC funding for crypto startups in Q1 2023, the new regulatory environment has made European firms an attractive investment opportunity.

France has positioned itself as a gateway to the EU crypto market. US crypto firms, facing heightened scrutiny from the US Securities and Exchange Commission (SEC), are considering relocating to European countries with more favourable regulatory landscapes. France's forthcoming Crypto-Asset Service Provider (CASP) regime offers international firms’ clear regulatory guidelines, aligning with European regulations and granting access to the broader European market.

With notable crypto companies already registering with French authorities, such as Circle, Binance, Crypto.com, eToro, and Digital Currency Group's Luno, France is poised to become a prominent crypto hub within Europe. This shift highlights the potential of EU regulations to shape the global crypto industry, influencing the actions and strategies of businesses worldwide.

Weekly Crypto Wrap: 25th May 2023

**Note: BTC Markets is unaffected by the announcement made by Binance earlier today. Our payment rails are open, and everything is business as usual for your account. We offer 24/7 free and instant AUD deposits and withdrawals. If you need assistance with your account, please raise a 

 and our Client Support Team will assist you.**

Sui (SUI) is now live and available to trade on BTC Markets.

RBA raises the cash rate by 25 basis points to 3.85%.

Bitcoin continues to dominate, up 63.23% while 1 million wallets hold 1 BTC.

Ethereum sees an unprecedented surge in Ethereum staking returns.

Westpac shuts down customer transactions with Binance Australia.

We are delighted to inform you that Sui (SUI) has been launched on BTC Markets. Sui is an innovative blockchain that focuses on enabling the development of decentralised applications (dApps) with speed, affordability, and user-friendly attributes.

It utilises its unique MOVE programming language and Narwhal-Tusk consensus algorithm. With a maximum token supply of 10 billion SUI, its primary objective is to establish a secure and transparent network for developers and users to engage in the creation and exchange of value. To delve deeper into the Sui project, we invite you to explore our 

: United Kingdom Consumer Confidence and Japan Inflation Rate reports due out.

:United Kingdom Inflation Rate and Germany Ifo Business Climate Index to be released.

: United States Fed Funds Rate and Germany GfK Consumer Climate report due out.

 surprised the market by raising the cash rate by 25 basis points to 3.85% in May, following a sustained period at 3.6% in April. This move marks the 11th rate hike by the RBA within the past year, contrary to market expectations of a pause.

Consequently, borrowing costs have escalated to their highest level since April 2012. The decision reflects the RBA's concern over the prevailing inflation rate in Australia, which currently stands at 7%, considered excessively high. Additionally, the labour market remains tight, with the unemployment rate at its lowest point in almost 50 years.

 in Q1 2023 provided temporary relief, with annual growth reaching a decade high at 3.7%. The wage price index rose in the quarter, slightly below the forecasted increase. The strong figures reflect low unemployment, a tight labour market, and elevated inflation levels.

The RBA emphasised that further tightening may be required to ensure a timely return of inflation to the target range. However, the bank acknowledges that the trajectory of interest rates will depend on the evolving 

, the current cash rate of 3.85% is anticipated to represent the highest point in the rate cycle, with a potential rate cut expected in 2024. There remains a risk of further tightening throughout this year due to elevated inflation. Conversely, 

 maintains its forecast that the RBA will raise the cash rate to 4.1% by August, with the possibility of an additional hike to 4.35%.

 Melbourne Institute Consumer Sentiment index for May 2023 experienced a significant decline of 7.9%, plummeting to a reading of 79.0. This decline far exceeded market expectations of a more modest 1.7% decrease. The index now hovers slightly above the lows observed in March, which marked the lowest monthly reading since the outbreak of COVID-19 in 2020.

 held in Niigata, Japan, was overshadowed by concerns over escalating global economic uncertainty. Key issues discussed included the impasse over the US debt ceiling and the repercussions of Russia's invasion of Ukraine. Central bank leaders from the G7 nations pledged to address heightened inflationary pressures and maintain stable expectations regarding future price movements. A 

 crisis arises when the country reaches its predetermined borrowing limit set by Congress, and the resolution to increase or eliminate the ceiling has become a contentious matter. Breaching the debt ceiling would have severe consequences, including credit rating downgrades, increased borrowing costs, and market turbulence. The potential economic impact could lead to reduced consumer and business confidence, diminished spending, and even a potential recessionary environment.

 for final demand recorded a modest increase of 

, falling short of market expectations for a 0.3% rise. The rise was primarily driven by a slight uptick in services costs, particularly notable in portfolio management. Sectors such as food and alcohol wholesaling, outpatient care, loan services, hospital inpatient care, and guestroom rental also experienced cost increases. However, goods prices saw a slight increase primarily due to a significant surge of 8.4% in gasoline prices. These movements reflect the potential impact on consumer spending, while concerns persist regarding high interest rates and a potential housing market downturn, which could impact overall economic growth and consumer spending in 2023. US building permits declined 1.5% to 1.416M in April 2023, missing expectations of 1.437M. High interest rates and rising consumer prices dampened housing demand.

 rebounded to 4.4% in April 2023, surpassing market expectations of 4.1%. The surge in consumer prices was primarily driven by the central bank's tightening measures, resulting in higher mortgage rates and rental costs. Mortgage rate costs rose to 28.5% compared to 26.4% previously, while rent prices increased by 6.1%. Transportation costs also accelerated, influenced by OPEC's crude oil output cut. However, inflation in the food sector eased slightly. The higher inflation rate raises concerns about a more hawkish stance from the Bank of Canada and presents challenges for the central bank as it navigates its monetary policy decisions.

 expanded by 5.6% year-on-year in April 2023, falling short of market expectations but showing acceleration from the previous month. The manufacturing and mining sectors received significant support from the lifting of the zero-COVID policy, leading to production growth in many sectors. However, some sectors experienced decreases in production.

 performance in the first quarter of 2023, with a growth rate of 0.4% quarter-on-quarter, surpassing market estimates. Private consumption played a significant role in driving growth, rising the most in three quarters after the complete lifting of strict border controls. Business investment also unexpectedly rebounded strongly. However, government spending stagnated, and net trade had a negative contribution. The annualised GDP growth rate of 1.6% for the first quarter marks the strongest pace of growth in three quarters. In April 2023, Japan's trade deficit, decreased compared to the same month the previous year. However, it was still lower than market expectations. This marked the 21st consecutive month of Japan experiencing a trade deficit, which is the longest such period since 2015.

The Bank of England implemented another 25 basis points increase, bringing the bank rate to 4.5% in May 2023, aligning with market expectations. The rate hike aims to address double-digit inflation, with the bank anticipating a decrease in inflation to 5.1% in Q4 2023. Although the UK economy is expected to stall in Q1 and Q2, it is projected to grow by 0.25% in 2023. The bank emphasised the importance of monitoring inflationary pressures, labour market conditions, wage growth, and services price inflation. In the first quarter, the UK's GDP growth of 0.1% matched market expectations, with growth seen in the services, construction, and manufacturing sectors. However, household spending remained stagnant, and the economy remains smaller than its pre-pandemic level. The unemployment rate increased to 3.9%, while employment levels saw an increase.

 plummeted to -10.7 in May 2023, reaching its lowest level in five months and significantly undershooting market expectations. Concerns regarding potential interest rate hikes by the European Central Bank and heightened uncertainty surrounding international economic development contributed to the downturn. Financial analysts anticipate a further deterioration in the economic climate, potentially leading to a mild recession in the German economy.

The last trading week saw the crypto market close in the red for a second consecutive session. Bitcoin closed the week at US$26,917, down a further 5.32% alongside Ethereum, down 3.81% and settling at US$1,799. XRP experienced a decline of 5.28%, closing at US$0.4253 whilst Cardano was also down 1.30%, closing at US$0.3711. Amidst the losses, Litecoin emerged as a survivor, boasting a meagre 0.10% gain, and closing at US$83.50.

Shifting focus to the year-to-date performance, Bitcoin continues to dominate, trading at US$27,306, reflecting an impressive gain of 65.09%. Ethereum has also shown resilience, climbing 52.47% and currently trading at US$1,823. Cardano has steadily risen by 53.46%, now trading at US$0.3774. XRP maintains its stability with a 32.19 % gain, trading at US$0.44.78, while Litecoin has demonstrated its strength with a 33.16% gain, trading at US$93.32.

The market capitalisation of Bitcoin experienced a slight setback, decreasing by 1.23% during the last trading week, with its dominance currently at 48.05%. The overall cryptocurrency market capitalisation suffered a notable decline of 4.62%, now valued at US$1.101 trillion.

(*source: Trading view, as of 18/05/2023 at 3:00pm AEST).

All about Aave’s system of lending pools and community governance.

and community-governed protocol that operates as a non-custodial liquidity market. With over 161,180 token holders, Aave allows users to participate as either suppliers or borrowers. Suppliers provide liquidity to the market and earn a passive income, while borrowers have the option to borrow in an over collateralised or under collateralised fashion.

One of the key advantages of Aave is its audited and secured protocol. It is completely open source, meaning anyone can interact with it through user interface clients, APIs, or directly with the smart contracts on the Ethereum network. This openness enables the development of third-party services and applications that can integrate with the protocol and enhance its functionality.

To interact with the Aave protocol, users simply need to supply their preferred asset and amount. By supplying assets, users earn passive income based on the borrowing demand in the market. Additionally, supplying assets as collateral allows users to borrow funds. The interest earned from supplying funds helps offset the interest accrued from borrowing.

While interacting with the Aave protocol, users should be aware of transaction fees associated with using the Ethereum blockchain. These fees depend on the network status and complexity of the transaction.

As with any platform, there are risks involved. The primary risks related to Aave include smart contract risk (potential bugs in the protocol code) and liquidation risk (risks associated with collateral liquidation). To minimise these risks, the protocol code is public, open source, and audited. Ongoing monitoring and improvements are conducted to ensure the platform's security.

The AAVE token holds a central role in Aave Protocol governance. It is used for 

 on Aave Improvement Proposals (AIPs). Additionally, AAVE can be staked within the protocol to provide security and insurance to the protocol and suppliers. Stakers earn rewards and fees from the protocol for their participation.

1 million individual wallets hold a 1 BTC as Lighting Labs updates software.

The number of individual wallets holding at least one Bitcoin (BTC) has surpassed 

, indicating strong long-term sentiment. This milestone comes despite the recent decline in Bitcoin prices and reflects a 20% increase since February of the previous year.

The growth in these wallets was observed during the collapse of crypto exchange FTX between November and January. The introduction of BRC-20 tokens, which enable developers to issue tokens on the Bitcoin network for decentralised finance (DeFi) purposes, has had limited impact on the number of wealthy Bitcoin holders. Additionally, recent data shows that most Bitcoin transactions now come from smaller wallets, suggesting increased Bitcoin velocity as more users transact with the cryptocurrency rather than holding it long-term.

Lightning Labs, a Lightning Network infrastructure firm, has released an updated version of its 

 on the Bitcoin blockchain after rebranding its project from "Taro" to "Taproot Assets." The rebranding was prompted by a trademark infringement lawsuit filed by Tari Labs, which resulted in an injunction last December. With the legal obstacles resolved, Lightning Labs has resumed development of the software, which will allow users to issue assets like stablecoins on the Bitcoin blockchain.

The newly renamed Taproot Assets protocol is currently available on a test network, with main network support expected to follow soon. The goal is to create an assets protocol for Bitcoin and Lightning that can scale globally without causing congestion or excessive transaction fees on the Bitcoin network.

Moving forward, Lightning Labs plans to propose finalised specifications of the protocol to the Bitcoin community through Bitcoin improvement proposals (BIPs) and Bitcoin Lightning improvement proposals (bLIPs). The ultimate objective is to facilitate Bitcoin-based asset transfers over the Lightning Network, a secondary system that enables faster and cheaper Bitcoin transactions.

The release of Taproot Assets signifies progress in the development of tokenisation capabilities on the Bitcoin blockchain. By enabling the creation and transfer of assets like stablecoins, this technology has the potential to enhance the functionality and utility of cryptocurrencies. It also demonstrates the ongoing efforts to improve scalability and efficiency within the Bitcoin ecosystem. These developments are significant for the global economy as they contribute to the maturation and wider adoption of cryptocurrencies, providing new avenues for financial innovation and inclusion.

Unprecedented surge in Ethereum staking returns.

Ethereum staking has seen a significant surge in returns following the recent upgrade to the Ethereum ecosystem in mid-April. The staking annualised rate of return for ETH validators has 

 of 8.76%, representing an impressive rate of return for staking yields. This surge in returns can be attributed to the successful implementation of the upgrade, which unlocked billions of dollars' worth of ETH and instilled renewed confidence in the Ethereum project.

, has also brought positive changes to the Ethereum network. It has reduced gas fees for developers, improving scalability and efficiency. These enhancements have further contributed to the growing interest and confidence in Ethereum staking.

In addition to the rise in staking returns, the popularity of liquid staking derivative (LSD) protocols, such as 

. These protocols offer an alternative to staking ETH on the mainnet, which requires a significant minimum deposit. Retail investors find these protocols more accessible, as they allow staking with any amount of ETH. Lido Finance remains the leading LSD protocol, with a significant increase in the amount of staked ETH over the past 30 days.

This current momentum in Ethereum staking and the growing popularity of LSD protocols indicate the increasing interest in and confidence of investors in the Ethereum network. It provides an opportunity for investors to earn attractive yields and actively participate in the blockchain's ecosystem.

Judge denies SEC request to seal Hinman documents in the battle against Ripple.

In the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, a federal judge has ruled that the SEC 

 related to former official William Hinman's 2018 speech on cryptocurrency and securities. The speech involved Hinman stating his view that Ethereum's native cryptocurrency, Ether, was not a security. The judge determined that these documents, known as the "Hinman Speech Documents," are relevant to the judicial process and should not be sealed.

While the judge allowed the SEC to redact personal information and names mentioned in the documents, she emphasised that sealing the documents would not be in line with preserving openness and public access. The ruling follows an earlier decision by a magistrate judge who had ordered the documents to be turned over to Ripple as part of the discovery process.

The judge granted some of Ripple's proposed redactions, including contractual agreements, financial information, and specific business details. However, she found certain proposed redactions to be overly broad, such as references linking Ripple's revenues with XRP sales and compensation details offered to trading platforms to list XRP. The judge also noted that Ripple sought to redact information regarding the amount of XRP sales targeted at investors through programmatic and institutional sales.

The ruling represents a setback for the SEC in its ongoing legal battle with Ripple and reinforces the importance of transparency and public access to relevant documents in the judicial process.

Binance Australia impacted by Westpac ban on payments.

Westpac, one of Australia's leading banks, has 

implemented a ban on customer transactions

 with Binance, a controversial global cryptocurrency exchange. This measure is part of a comprehensive strategy aimed at mitigating the economic impact of fraudulent activities.

Scott Collary, Westpac's group executive of customer services and technology, emphasised the rise of scammers exploiting overseas exchanges, leading to significant financial losses for customers. Westpac's latest data reveals that investment scams constitute approximately half of all scam losses, with a notable portion of scam payments being directed to cryptocurrency exchanges based overseas.

The implementation of new security measures aims to safeguard customers from such scams. Notably, Binance has faced regulatory challenges, including the cancellation of its derivatives license in Australia and a lawsuit filed by the US Commodity Futures Trading Commission, alleging illegal operations and inadequate compliance protocols.

Crypto industry insiders react to DOJ’s crackdown on potential fraud.

 in the crypto industry is raising concerns and prompting assessments within the sector. Eun Young Choi, director of the department's national cryptocurrency enforcement team, stated in an interview that the focus is on companies that facilitate or commit crimes, such as money laundering. This move comes as the US government acknowledges the challenges of regulating or enforcing criminal actions in the borderless and virtual realm of crypto.

Authorities in the US have already made efforts to tackle crypto-related crimes. For instance, the Justice Department arrested the founder of Bitzlato, a digital exchange, for allegedly transmitting around $700 million in illicit crypto funds. Additionally, a man was charged with defrauding Mango Markets, a decentralised finance platform, of US$110 million worth of crypto.

While the crypto industry supports the crackdown on crime, there are concerns about its impact on innovation. Some question whether the US's enforcement-focused approach to regulation could contribute to market uncertainty. They emphasise the need for clear and comprehensive regulations from Congress to provide guidance for compliance rules and foster industry growth. If regulatory actions continue without clarity, there is a risk of driving crypto out of the US market.

Coinbase CEO Brian Armstrong shares similar sentiments, advocating for strong rules that govern and regulate digitally traded assets. However, he also warns against overregulation of certain aspects, such as staking, which could harm retail traders. Armstrong urges the US to encourage the growth of new technologies by providing a supportive regulatory environment.

The Securities and Exchange Commission (SEC) has also acted against crypto-related misconduct. It charged Genesis Trading and Gemini, two prominent crypto exchanges, with unregistered securities violations. Other individuals, including Do Kwon of Terraform Labs and celebrities like Lindsay Lohan and Jake Paul, have faced SEC charges for allegedly engaging in illegal promotion of crypto securities.

The increased enforcement efforts surrounding crypto crimes in the US stem from incidents like the collapse of FTX and the subsequent discovery of more US individuals using offshore platforms. While the short-term impact may shed light on the illicit use of crypto, in the long run, it may drive the industry towards holistic solutions to address bad actors and encourage mainstream adoption.

The US government's actions in regulating crypto crimes have broader implications for the global economy. As crypto becomes more interconnected with traditional financial systems, regulatory clarity and effective enforcement are crucial to ensure trust, security, and investor confidence. It remains to be seen how the regulatory landscape will evolve, but striking a balance between oversight and fostering innovation will be key for the sustainable growth of the crypto industry on a global scale.

Australian Tax Office (ATO) to increase its oversight of cryptocurrency trades.

intensifying its scrutiny of cryptocurrency

 trades, making it crucial for traders and holders to stay informed about the upcoming tax obligations. As tax time approaches, there are four key areas the ATO is focusing on for 2022, with capital gains or losses from crypto assets taking centre stage.

While it's widely known that converting crypto to Australian dollars should be reported to the ATO, many people are unaware that using one cryptocurrency to purchase another also needs to be reported. Every instance of such a transaction must be disclosed to the ATO. To simplify this process, there is tax software that tracks all crypto trades and calculates the tax liabilities at the end of the financial year.

According to Danny Talwar, Head of Tax at Koinly, trading between cryptocurrencies is a taxable event. This includes trading from Bitcoin to stablecoins and then transferring stablecoins to other crypto assets. It's important to note that not only selling crypto for fiat currency triggers tax obligations, but activities like staking can also generate taxable income.

The ATO has access to information about crypto transactions due to the traceability of blockchains. Wallet interactions can be traced, and exchanges are obligated to provide information to the ATO. When individuals sign up for a crypto exchange, they undergo a Know Your Customer (KYC) process, which often links their exchange accounts to their IDs.

Talwar emphasises that the ATO has a solid understanding of cryptocurrencies and is actively focusing on the crypto space. They have previously released guidelines on cryptocurrency and have identified it as a priority area for ensuring the proper declaration of gains.

Talwar advises crypto enthusiasts to take responsibility for accurately reporting their gains to the ATO. Treating crypto as any other asset, it is essential to stay informed and seek assistance from accountants, particularly for those new to navigating tax obligations related to cryptocurrency holdings. By staying compliant and disclosing their gains properly, crypto investors can fulfill their tax obligations and mitigate potential risks.

Australian consumers lose AU$88.7 million to investment scams.

Investment scams have become a significant concern in Australia, as they continue to target individuals, with a 

 to investment scams. 45.8% of reported cases resulting in financial losses, according to ScamWatch. These scams are evolving rapidly, with scammers employing new technology and tactics that make them increasingly difficult to detect.

Impostor bond scams are on the rise, where scammers impersonate legitimate financial institutions or banks and offer fraudulent government bonds or fixed term deposits. The sophistication of these scams has raised concerns among authorities, including the Australian Competition and Consumer Commission (ACCC). Catriona Lowe, Deputy Chairwoman of the ACCC, highlights the challenges in identifying scams, such as scammers impersonating official phone numbers, email addresses, and websites, as well as embedding scam texts within genuine message threads. This calls for a coordinated response involving government, law enforcement, and the private sector to effectively combat scams.

In response to the growing threat, the federal government has allocated AU$87 million in the budget to establish a National Anti-Scam Centre within the ACCC. The centre will be responsible for taking down phishing websites and other platforms that promote investment scams. The Australian Banking Association (ABA) launched an education campaign to raise awareness of scam scenarios and empower customers to protect themselves.

Weekly Crypto Wrap: 18th May 2023

CEO’s Corner: BTC Markets coin listing process.

US CPI rose 0.4% whilst annual inflation fell to 4.9%.

Bitcoin price at US$27,519, reflecting a 66.36% annual gain.

Ethereum is trading at US$1,832, up 53.16% on the year.

PayPal making waves in the world of crypto.

Sui is a new blockchain designed for building decentralised applications (dApps) with high speed, low cost, and user-friendly features. It uses its own MOVE programming language and Narwhal-Tusk consensus algorithm. With a maximum supply of 10 billion SUI tokens, it aims to provide a secure and transparent network for developers and users to create and exchange value.

Get ready to place your post-only orders on Tuesday, May 16th ahead of the market going fully live on Wednesday, May 17th. 

: Release of the United Kingdom's interest rate data, and the United States' monthly Producer Price Inflation figures.

 Westpac-Melbourne Institute Index of Consumer Sentiment for Australia and the publication of the United Kingdom's Gross Domestic Product (GDP) numbers.

 Announcement of the Michigan Consumer Sentiment index in the United States.

: Release of the Reserve Bank of Australia's meeting minutes, as well as China's Industrial Production figures, the United Kingdom's Unemployment Rate data, Germany's ZEW Economic Sentiment Index, Canada's annual inflation rate, and the United States' retail sales figures.

: Publication of Japan's GDP Growth Rate and the United States' Building Permits data.

: Release of Japan's Balance of Trade figures.

How do we decide what projects to list on BTC Markets?

I want to share some details how BTC Markets decides what tokens/coins to list. Projects are nominated by looking firstly at client demand. For example, based on client requests on social media, inbound client support tickets or where possible to list Top 40 tokens (according to 

From there, the project whitepaper is reviewed by our financial services legal team to ensure it is not a security under Australian regulation. Concurrently, due diligence is done on the founders and project itself. Ideally, we are looking to sidestep listing any projects which may cause legal issues or potential problems for clients down the line.

BTC Markets does not accept payment for listing cryptocurrencies on our platform. This is to avoid compromising our ability to conduct due diligence on projects. While this does not guarantee the quality of the projects listed, it allows BTC Markets to keep "clean hands" and maintain transparency with our clients.

As we are an exchange (not a broker) we build the token infrastructure ourselves. Meaning spinning up the specific blockchain, wallet etc. Invariably, due to the newness of the technology the documentation on this part can be sparse. This historically has meant new chains can be time-consuming to incorporate (but still worthwhile - it is our job after all.) 

Naturally, we focus on issues around custody and security. That is partially offset by our partnering with 

. This should enable us to quickly list shared projects which is an area we can improve on.

Rachael Lucas

Rachael Lucas

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Rachael Lucas

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