Welcome to another edition of Blockchain Digest, your go-to source for the latest news and updates in the world of cryptocurrencies and blockchain technology. In this edition, we cover Tether’s strategic move to acquire more Bitcoin, the current state of meme coins, and the challenges faced by cryptocurrency firms in Ukraine regarding tax compliance.
1. Tether’s Bitcoin Acquisition Boosts Institutional Interest in Crypto
Tether, the company behind the popular stablecoin USDT, has purchased 1,529 Bitcoin, worth approximately $45.4 million, in the second quarter of 2023. This aligns with their earlier announcement to allocate a portion of quarterly profits to Bitcoin, further reaffirming the growing institutional interest in the cryptocurrency. With over 54,000 BTC in total, Tether poses a potential challenge to the dominance of MicroStrategy’s Michael Saylor, who recently acquired 467 BTC.
2. Meme Coins Witness Price Drops as Investor Interest Shifts
During the past 24 hours, meme coins Dogecoin ($DOGE) and Pepe ($PEPE) experienced significant price drops amid a period of volatility. This decline has led investors to seek alternative meme coin options, with Shibie Coin ($SHIBIE) emerging as a potential contender. The value of Dogecoin has fallen by 5%, while Pepe’s value has dropped by 6%. Investors are now turning to meme coins that offer more utility and growth potential, such as Shibie Coin, which has already raised $75,000 in its presale and is gaining traction on social media platforms.
3. Ukraine’s Cryptocurrency Tax Challenges
Despite passing a crypto bill in 2022 to allow for taxes on cryptocurrency transactions, cryptocurrency firms operating in Ukraine have failed to pay over $81 million in taxes to the government. The Economic Security Bureau of Ukraine reported that unrelated cryptocurrency exchanges were responsible for this loss of revenue between 2013 and 2023. Although the country enacted the “On Virtual Assets” legislation to establish a regulatory framework for crypto transactions, the lack of amendments to the civil and tax codes has created confusion among crypto users regarding potential retroactive tax obligations. Despite these challenges, Ukraine has received substantial cryptocurrency donations, totaling around $225 million, in support of its ongoing conflict with Russia.
The increasing institutional interest in Bitcoin, the volatility of meme coins, and the ongoing challenges of crypto tax compliance in Ukraine highlight the ever-evolving landscape of cryptocurrencies and blockchain technology. Stay tuned for more updates in the next edition of Blockchain Digest.