Daily Crypto News 12 October
Despite prices reaching a five-month high, institutional investors are still investing into Bitcoin. This week, more than $226 million in money poured into institutional Bitcoin instruments, according to a study. These instruments led inflows for the third week in a row, with a 227% week-over-week gain. The large inflows corresponded with BTC's price rising 12.5 percent for the week, with BTC trading at $54,000 on Oct. 8.
Because of the increased interest in Bitcoin, the aggregate assets under management (AUM) of institutional crypto products reached $66.7 billion last week, according to CoinShares, falling only 5% short of the sector's all-time high AUM from May. Products tracking cryptocurrencies had a mixed week, with Solana and Cardano products garnering $12.5 million and $3 million inflows, respectively.
However, funds with exposure to Ether, Polkadot, and Ripple had withdrawals of $13.6 million, $2.1 million, and $600,000, respectively. For the eighth week in a row, crypto investment products have seen inflows.
According to the Korea Herald, South Korea's opposition People Power Party is developing a proposal to postpone the implementation of the country's crypto tax law and alter the amount at which taxes would be levied. The measure would push the legislation's implementation date from Jan. 1, 2022, to the beginning of 2023. It would also change the legislation from imposing a 20% tax on cryptocurrency capital gains over 2.5 million won (US$2,125) to imposing a 20% tax on gains between 50 million and 300 million won ($42,000-$251,000) and a 25% tax on profits beyond 300 million won.
“It is not right to impose taxes first at a time when the legal definition of virtual currency is ambiguous,” the Korea Herald quoted Rep. Cho Myung-hee of the People Power Party as saying. “The intention is to ease the tax base to the level of financial investment income tax so that virtual currency investors do not suffer disadvantages.”
According to the article, MPs are poised to propose the measure as early as Tuesday. Last week, South Korean Finance Minister and Deputy Prime Minister Hong Nam-ki stated that the current law was ready for implementation on January 1 and that further delays would "lead to a loss of public trust in government policies and jeopardize legal system stability." Non-fungible tokens (NFT) appear to be free from crypto taxes for the time being. However, they are not yet classified as "virtual assets" in South Korea.
Front Row, a marketplace targeted toward progressive groups, has announced a partnership with the Texas Democratic Party to trial a program aimed at generating funds for candidates and issues through the use of nonfungible tokens. Front Row announced in a statement that it has already minted digital pictures of significant events in the progressive movement and placed the nonfungible tokens (NFTs) for sale.
Among the featured NFTs are "wanted" posters showing conservative Texan legislators leaving the state. According to Front Row, the cash generated through the NFTs would be sent "directly toward political parties and people", but did not specify how it planned for the digital purchases to be compliant with current campaign finance laws. According to the Act, candidates for government employment may not earn more than $5,800 from a single individual for the selling of one or more NFTs.
"NFTs will become a strong complement to any political fundraising campaign, and the launch of our marketplace will provide Democrats across the country with a fundraising advantage that their competitors do not have," Front Row co-founder Parker Butterworth said, referring presumably to Republicans.
"We can't wait to keep converting interesting, one-of-a-kind behind-the-scenes experiences into digital products that further progressive values."