Cryptocurrency markets continue to move sideways throughout the second half of March, with some mild growth observed but a lack of any significant upward movement. Governments around the world continue to focus on improving cryptocurrency regulation, with a focus on customer safety and tax implications.

NFTs are once again in the spotlight, this time funneling some of their excessive profits towards lawyers as legal battles break out between warring art factions. It's just another crazy fortnight in the world of cryptocurrency!

Top News

Crypto.com Becomes the Official Sponsor for FIFA World Cup 2022 in Qatar

One of the world's largest cryptocurrency exchanges, Crypto.com, has been chosen as the official sponsor for the Fifa World Cup 2022. The Singapore-based exchange recently gained widespread popularity after featuring an advert in the Superbowl Half-time show and is involved in several other sports, including MMA, basketball, ice hockey and motorsports.
“We could not be more excited to sponsor the FIFA World Cup, one of the most prestigious tournaments in the world, and to drive further awareness of Crypto.com globally," said Kris Marszalek, co-founder and CEO of Crypto.com

Bitcoin Enjoys Sudden Gains in Late March, Briefly Breaks US$43,000

Bitcoin enjoyed a sudden rally on 22 March that pushed the leading crypto coin back above US$43,000, a level it dropped below at the start of the month. Although Bitcoin has been steadily climbing since hitting a low of around US$35,000 in late January, it struggles to break through significant resistance at the US$45,000 mark.

The Russian invasion of Ukraine coupled with rising inflation has fuelled interest in Bitcoin as a safe haven, but lingering fear in global markets continues to drive institutional investors away from high-risk, speculative assets.

Goldman Sachs Completes First Ever Over-the-Counter Bitcoin Trade by Major U.S. Bank

Goldman Sachs has become the first ever major U.S. bank to complete an over-the-counter (OTC) trade in Bitcoin. The trade, facilitated by crypto exchange Galaxy Digital, involved the sale of a non-deliverable option (NDO), meaning no physical Bitcoin was delivered to Goldman Sachs but rather a contract on the future price. This is similar to the derivatives products offered by a Bitcoin Futures ETF.

"We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets," said Damien Vanderwilt, Co-President, and Head of Global Markets at Galaxy Digital. Mike Novogratz's New York-based Galaxy Digital exchange recently partnered with Goldman Sachs as a liquidity provider to its Bitcoin futures trading desk, which launched last year.

NFT Market Becomes Embroiled in Battle of the Apes

The hugely popular Bored Ape Yacht Club (BAYC) has become embroiled in a lawsuit involving a spin-off NFT project, Caked Apes. The legal battle involves BAYC artist Taylor Whitley, who alleges the Caked Apes team owes him royalties, while the Caked Ape team claim Whitley did not contribute to the art.

The lawsuit is the latest in a slew of legal battles that highlight digital ownership issues related to NFTs, which some say have the potential to replace traditional copyright measures. The new Caked Apes collection has sold 9,000 NFTs since January, accruing US$1.9 million in profits.

Latest Crypto Trends

Crypto Regulation in Australia
Regulation of the cryptocurrency industry continues to be a hot topic around the world, with Australia the latest country to lead the charge for favorable legislation. Most recently, the United States was in the spotlight for crypto regulation as President Joe Biden signed an executive order earlier in the month that many believe will be good for the industry.

Now, New South Wales Senator Andrew Bragg of the Australian Liberal Party (interviewed by our very own Blake & Tracey on the Crypto Curious podcast here) continues his fight for positive cryptocurrency regulations in the country, and his efforts look ready to come to fruition. The federal government is discussing a “comprehensive legislative package” for the cryptocurrency industry and has reportedly "opened consultation on a new licensing framework for digital currency platforms."“To do this would make Australia one of the only jurisdictions confronting this issue head-on, signaling that we fully appreciate the promise and potential of blockchain technology,” Senator Bragg said.

The legislation comes as part of the most significant reforms to Australia’s payments system in 25 years, and could include the development of a Central Bank Digital Currency (CBDC) in the country. Taxation remains one of the biggest pain points for cryptocurrency investors around the world, with many still unclear on how to file their returns. The Australian Board of Taxation has been tasked with providing more clarity on this matter, which until now has placed all digital assets in the general realm of Capital Gains.

“Our position is clear: to provide greater certainty and confidence, not increase the overall tax burden,” said Treasurer John Frydenberg, assuring the new legislation will support, rather than stifle, crypto innovation in the country. 

That's it for the latest instalment of updates in the crypto world in March. Stay tuned for the next instalment by subscribing to our newsletter below.