EddieJayonCrypto
11 Oct 22
• EU looking to automate DeFi monitoring• Portugal implementing a 28% capital gains tax for 1st year gains• G20 ready to review the next iteration of the Crypto-Asset Reporting Framework (CARF)• TrueFi issues $3.4M default to Blockwater, is Wintermute next?• Coinbase gets licensed in Singapore and c...
• EU looking to automate DeFi monitoring• Portugal implementing a 28% capital gains tax for 1st year gains• G20 ready to review the next iteration of the Crypto-Asset Reporting Framework (CARF)• TrueFi issues $3.4M default to Blockwater, is Wintermute next?• Coinbase gets licensed in Singapore and cuts major deal with Google for crypto payments• Polygon has launched their ZK scaling solutionHere is what is on my mind today.1. Interesting and not at the same time the EU would like to use an automated system to monitor transactions, specifically DeFi. I say this because there are tons of entities already doing this. The question I have is the detail of what they would be monitoring and to what end. I get the DeFi supervision aspect, but right now it is still very conceptual. 2. Once a major crypto-friendly state Portugal is about to introduce a 28% crypto tax on short-term gains. Capital gains made after one year would be exempt from the tax. At least for now. It is not the tax that gets me, it is how Portugal lured the Cryptoverse in and then started drastically changing the parameters of operation within its borders. Sounds like bait and switch to me. 3. The G20 is going to review a global crypto regulation framework. The end game here is to create a way to combat global tax evasion. They will be reviewing the latest iteration of the Crypto-Asset Reporting Framework (CARF) along with amendments suggested by the Common Report Standard. The combined framework addresses and defines things like defining "crypto assets" and NFTs. 4. Could there be some serious headwinds ahead for TrueFi? They have already issued a default notice to Blockwater to the tune of $3.4M. This represents 2% of TrueFi's Total Value Outstanding. Clearly, this one is a drop in the bucket. Then there is their largest currently active loan to Wintermute of $92M USDT debt at a whopping 8.73% interest rate. You might have come across Wintermute while doing your own research. They are the company that fell victim to a hack that saw $160M snatched from off the platform. Repayment of their loan is due in only a few days, October 15th. TrueFi may not be a name known to many, but Alameda Research, Amber Group, and some unfortunate firms like Celsius Network and Babel Finance are some past and present clients. 5. Coinbase is on a tear having received a crypto license in Singapore and striking a major deal with Google. The partnership will see Coinbase migrate their cloud environment to Google Cloud. The deal will also have Google accepting crypto payments via Coinbase. The details of this deal are not all known, but this could be a major move by both companies. 6. Polygon has launched their ZK scaling solution. This is a major implementation as it comes at least one year ahead of any such solution for Ethereum. In case you are not aware this make moving digital assets via Polygon as close to free as one can get with a 90% fee reduction. Another major point about this implementation is the scalability without compromising security.