Nigerian Court Halts Binance Trial; Bitcoin ETFs Experience Outflows; New US Crypto Tax Proposal
Summary:
A Nigerian court has postponed a trial against a Binance executive accused of money laundering until the 16th of May. Meanwhile, crypto analysts predict that Bitcoin might face up to two months of price consolidation after its latest halving. In the US, Bitcoin ETFs have experienced a record day of outflows, with BlackRock's fund seeing its first-ever outflow day. Separately, a proposed US bill seeks to tax cryptocurrencies when sold, not acquired, which could significantly impact how US crypto networks are taxed.
In a Nigerian courtroom, a case against Tigran Gambaryan, a stationed Binance executive, has been temporarily halted until the 16th of May. Originating from allegations of money laundering, the trial was due to start on May 2nd, but lawyers representing Binance successfully obtained an adjournment, citing the absence of critical documents. Gambaryan and Nadeem Anjarwalla, Binance regional manager, travelled to Nigeria in February 2024 to resolve legal issues, only to be arrested on accusations of money laundering and tax evasion. Anjarwalla is suspected of evading custody and fleeing the country.
Cryptocurrency professionals at the Bitfinex exchange anticipate that Bitcoin could face up to two months of price stagnation post-halving. Bitfinex’s latest market update suggests that the actions of Bitcoin, the cryptocurrency market's bellwether, may continue to influence the market cap throughout May. The report highlights a robust macroeconomic backdrop, with minimal possibilities of imminent rate cuts. They posit that consumers and companies are more knowledgeable and better ready for the economy's status than during past market cycles. Hence, a possible Bitcoin price consolidation period of one to two months is predicted, with a potential fluctuation of $10,000.
In the meantime, a historic outflow occurred amongst the United States' dedicated Bitcoin exchange-traded funds (ETF), with BlackRock's fund experiencing its inaugural day of outflows. On the 1st of May, the iShares Bitcoin Trust (IBIT) saw an outflow of $36.9 million, with nine other Bitcoin ETFs reporting joint outflows equating to $526.8 million. James Seyffart of Bloomberg, a prominent ETF analyst, notes that the Bitcoin ETFs continue to operate seamlessly and that the reported outflows are part of the ETF lifecycle.
Simultaneously, a new regulation has been proposed in the United States by Republican Drew Ferguson and Democrat Wiley Nickel. This law, the “Providing Tax Clarity for Digital Assets Act,” would apply taxes to block rewards on proof-of-work and proof-of-stake networks upon their sale rather than their acquisition. Block rewards would be categorized as “created property” according to U.S. tax law. Nickel points out that the present regulations are excessively complex, leading to investor confusion, recurrent taxation, and companies moving their operations overseas.
Published At
5/2/2024 9:12:38 PM
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