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Cryptocurrency exchange Binance faces $86 Million tax notice in India
Key points:
Binance denies any wrongdoing and is cooperating with authorities.
This is the first such notice issued to a global crypto exchange in India.
News - Cryptocurrency exchange Binance is embroiled in a tax dispute with Indian authorities, facing a $86 million showcause notice from the Directorate General of Goods and Services Tax Intelligence (DGGI).
The notice alleges that Binance collected fees from Indian customers without paying the requisite taxes between 2017 and 2024.
While this is not the first time Indian authorities have targeted crypto exchanges, it marks the first instance of such a notice being issued to a global player like Binance. The company has maintained its commitment to complying with Indian regulations and is currently reviewing the notice.
The tax department has categorized Binance's services as Online Information and Database Access or Retrieval Services (OIDAR), subjecting them to taxation. However, the final outcome of the dispute remains uncertain, as similar notices have been challenged and subsequently dropped in the past.
Binance has a history of regulatory challenges in various jurisdictions, and this latest development adds to the complexities of operating in the global crypto market.
Marathon Digital doubles down on Bitcoin, buys $124M worth in July
Key points:
Company adopts "full hodl" strategy for Bitcoin.
Marathon aims to treat Bitcoin as a strategic treasury asset.
News - Marathon Digital Holdings, a prominent Bitcoin miner, has further solidified its commitment to the cryptocurrency by acquiring an additional 2,282 BTC, bringing its total holdings to over 20,800 BTC.
This move aligns with the company's "full hodl" strategy, which aims to treat Bitcoin as a strategic treasury asset.
The decision to increase Bitcoin holdings comes amid a challenging market environment and follows the recent purchase of $100 million worth of BTC in July. Marathon's strategy contrasts with other miners who might be forced to sell their holdings due to the Bitcoin halving's impact on mining profitability.
The company has also demonstrated its commitment to Bitcoin mining by increasing its Bitcoin production by 17% in July. Marathon's robust financial position, with $1.6 billion in Bitcoin and cash holdings, strengthens its ability to weather market volatility.
This strategic approach by Marathon Digital signals a strong belief in Bitcoin's long-term potential and could influence other market participants.
Ronin Bridge temporarily halts and resumes following $12M whitehat hack drain
Key points:
Ronin bridge paused after a $12 million hack.
Whitehat hackers discovered the vulnerability.
News - Cryptocurrency bridge Ronin temporarily suspended its operations following a $12 million exploit only to resume later. The incident involved the unauthorized withdrawal of 4,000 Ether and $2 million worth of USDC.
The hack was identified by whitehat hackers, who alerted the Ronin team to the vulnerability. The bridge was subsequently paused to prevent further losses.
Ronin developers are currently in communication with the attackers to recover the stolen funds. The platform suffered a significantly larger hack in 2022, losing $625 million.
Bridges, which facilitate token transfers between different blockchains, have emerged as a prime target for hackers due to their complexity and potential for large-scale theft.
The latest incident highlights the ongoing security challenges facing the cryptocurrency industry.
Ether spot ETFs see strong inflows amid broader market crash
Key points:
Amid the broader market sell-off, ETH took the greatest hit.
However, its ETFs saw good number of inflow.
News - Despite a dramatic 20% plunge in Ether's price, newly launched spot Ethereum ETFs attracted nearly $49 million in inflows on Monday.
This counterintuitive trend suggests institutional investor confidence in the world's second-largest cryptocurrency.
While the broader market experienced significant turmoil, with over $340 million in ETH futures liquidated, professional investors appeared to view the price drop as a buying opportunity.
BlackRock's ETHA ETF led the charge with $47 million in inflows, followed by Fidelity's FETH and VanEck's ETHV.
However, the overall picture for ETH ETFs remains somewhat mixed. Since their launch on 23 July, these funds have collectively seen net outflows of $460 million, indicating that long-term investor demand is still developing.
Meanwhile, the resilience of Ethereum's underlying network amid the price crash has bolstered confidence in the asset's long-term prospects.
More stories from the crypto ecosystem
Did you know?
One Bitcoin transaction’s carbon footprint is equivalent to more than 762,000 Visa transactions, according to Digiconomist.
The difficulties of tax reporting and the controversy surrounding crypto have resulted in digital assets being entirely banned in a few countries like Algeria, Bolivia, Dominican Republic, North Macedonia, Qatar, Saudi Arabia, and Vanuatu.
Surprisingly, the concept of cryptocurrencies can be traced back to the 1980s. The idea of untraceable peer-to-peer digital money was first proposed by an American IT named David Chaum in 1983 — long before the creation of Bitcoin.
Top 3 coins of the day
XRP
Key points:
XRP was trading at $0.5069, at the time of writing.
It was down by 17.94% over the last day.
What you should know - XRP experienced significant volatility in the past few days. After a period of sideways trading, the price attempted a breakout toward the downside. This movement was accompanied by a noticeable increase in trading volume, indicating strong selling pressure. The Bollinger Bands showed a widening gap, suggesting heightened volatility. The RSI, at press time, stood at 40.10, hinting at a potential recovery, but it remained in the bearish zone. The next support level is around $0.43. If the price holds above this level, a potential recovery could be seen. However, a break below might lead to further declines.
Uniswap (UNI)
Key points:
UNI’s daily chart was heavily dominated by bears.
However, it was up by 6.95% over the last day.
What you should know - UNI has faced significant bearish pressure recently just like other altcoins. On 4 July, the price attempted to breach the resistance zone around $8.00 but failed, resulting in a further decline. The press time price was hovering around $5.80, significantly below the 50 and 100-day EMAs, which were positioned at $7.913 and $8.435, respectively. This hinted at a strong bearish trend. However, the CHOP indicator at 33.16 suggested trend exhaustion. A sideways movement or a slight recovery can be expected in the next few days. For a potential recovery, UNI must break above the $10 psychological resistance mark and sustain higher levels.
Monero (XMR)
Key points:
Compared to other altcoins, XMR has performed well in recent past.
It was, however, down by about 6.92% in the last seven-days.
What you should know - Monero, at publication time, was trading at $148.41 after bouncing off a strong support level at $134.62. The price was facing near-term resistance at $176.98. The daily chart showed a previous attempt to break this resistance, which resulted in a pullback. The Awesome Oscillator (AO) sat at -6.96, indicating bearish momentum, but it appeared to be stabilizing. The support level around $134.62 showed good liquidity, suggesting it was a strong foundation for potential rebounds. For XMR to resume an upward trajectory, it needs to break above the near-term resistance with significant volume.
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