Senator Andrew Bragg presented a new rule in which he highlights the need for more control over DAOs because they represent latent threats to the tax core.

Australia is moving toward crypto-friendly regulations after some officials and representatives under the political spectrum pledged to lay the legal groundwork for the crypto environment.

Australian Senator Andrew Bragg has revealed a new rule named the “Digital Services Act” (DSA), ranging from a licensing system for digital asset exchanges to a tax framework. It also mentions DAOs while intending to ensure protection for crypto market investors.

Bragg presented the legislative package during his keynote address for the annual Australian Blockchain Week conference.

Australia Initiates its Steps toward Crypto Regulation

Bragg outlined the four primary cores of DSA. He explained that the regulation would be neutral, have more flexible rules, and get regulated by a Ministry instead of an agency.

The senator said that this implementation would show that Australia is eager to carry out business activities. He expressed that everything is clear enough, and expressed confidence that such a bill will help a country like Australia gain a vital role in the global crypto industry.

The Australian Liberal Party senator had already expressed that the DSA would desire to bring a more solid regulatory oversight and discourage entities from seeking all the alternatives they have at hand. As Blockworks highlighted, the Senate Committee executed strategies to regulate the sector last year and presented a report highlighting the considerations of the legislators in December.

The Australian government revealed three documents on Sunday, including a consultation highlighting the input from industry players on approaches to generating a licensing and custody system ideal to have more control over digital assets. The other documents show a crucial path on the road to achieve more goals on the sector’s structure, which the government desires to execute by 2022.

 A Framework for DAOs and a New Taxation System

Digital Asset taxes represent another vital branch of Bragg’s proposed legislative rules. According to a draft, the county’s Board of Taxation would require to review the nation’s crypto tax environment.

According to Blokworks, the board will take into account the current tax climate for digital assets, learn more about the asset classes features, set a comparative view over the existing framework with that of comparative jurisdictions, and take into account whether any changes would be vital for applying in these cases. The review will take effect because it would not increase the overall tax obligations for investors.

On the other hand, Bragg stood in front of the DAO during his speech. According to media outlets, the senator suggested the government consider these rules and proposed that they should have a position of power under the Corporations Law. According to Bragg, DAOs must face a regulation urgently.

According to the DSA proposal, the government would have the mission of creating a framework for DAOs without stifling its basic concepts. The standards would grant total access to DAO audit, assurance, and disclosure features that would help users distinguish between retail and large-scale organizations.

By: Jenson Nuñez

The whales transferred 19,042 BTC from unknown wallets to exchanges and 13,270 BTC vice versa. However, those long-term holders moved 8,891 BTC between the latter platforms and made no peer-to-peer transfers.

The Bitcoin whales recently moved 41,203 BTC through 40 transactions, but their activity was lower than the previous week. The following daily analysis shows the details and the influence that this may have had on the performance of Bitcoin.

The trend in the behavior of the Bitcoin whales this month has remained unclear, as it changes a bit every week. The analysis of their activity will assess in detail how those long-term holders have moved the pioneering cryptocurrency.

It is necessary to contextualize that activity to better dig into the status of the whales and the market as a whole. However, this is just a micro approach to one of the many factors that can influence the performance of BTC.

Daily Analysis of the Activity of the Bitcoin Whales

The predominant trend in the activity of the Bitcoin whales was the introduction of liquidity into the market. They moved 19,042 BTC from unknown wallets to exchanges, equivalent to 46.21% of the weekly total.

The second-highest trend was accumulation, as 13,270 BTC went from exchanges to unknown wallets, representing 32.21% of the weekly total. It is relevant to note that this trend was only predominant on March 16^th.

The transfer between exchanges was the third-highest trend, as they moved 8,891 BTC in that direction, representing 21.58% of the weekly total. Finally, the whales did not make any movements between unknown wallets.

The Performance of Bitcoin Over the Last Week

On March 19^th, the amount of BTC in the reserves of exchanges was 2,302,930, an increase of 3,359 BTC within 24 hours. The analysis of the activity of the whales indicates the introduction of liquidity into the market, possibly preparing for selling.

The returns of BTC have decreased by 10.75% since early 2022, while they have recently dropped by 0.99%.

Bitcoin is trading at around USD 42,741 and has accumulated a 7.7% gain in the last 24 hours. Its daily trading volume is above USD 28.82 billion, and its market capitalization is about 811.71 billion, according to CoinGecko.

The trading volume of BTC on exchanges continued to decline after the rally on March 16^th. In addition, the number of buy/sell orders in the futures market balanced out two days later, indicating the weekly price rally lacks conviction.

The cost of holding long BTC positions in perpetual futures traded on leading exchanges in the swaps market recently raised. That increase in the average funding rate possibly reflects bullish sentiment among investors.

The behavior of the Bitcoin whales contributes to the changes the cryptocurrency has shown. For that reason, it is crucial to know how those long-term holders have moved their BTC holdings.

News events like the announcement about the rise of interest rates by the Fed have influenced the BTC price. Investors should also stay informed about what technical indicators show about the selling trend in the market before deciding to buy.

By Alexander Salazar

Ethereum is a network that counts on a complex structure, and each update increases the struggle. A developer believes that adding features needs to stop before there is a point of no return.

Péter Szilágyi, Leader at the Ethereum Foundation and a lead developer of this network, had expressed his concern on social media about the direction of the blockchain and the improvements it constantly goes through. He assured that Ethereum was avoiding walking through a solid path and pointed at the complexity of its protocol as one of Ethereum’s primary obstacles.

According to what this developer highlighted on his Twitter profile where he has at least 47,000 followers or more, Ethereum appears to be approaching The Merge healthily. Still, the direction desired to improve the advances of this blockchain remains uncertain; the Merge level represents an instance in which the network will go through a transitional level to the new version of Ethereum 2.0.

According to this developer, Ethereum’s complexity is a feature that usually gets avoided because it is someone else who has to carry that burden and not the creators behind the project.

The expert also highlighted that researchers tend to figure out elegant features, but it is a hard task for developers to get those fantasies into action. Szilagyi expressed through other tweets that he must alter these strategies and manage them carefully to expand the network. This action may not always bring fruits, and it could cause a breaking point of no return.

The Complexity of Ethereum

The Ethereum network counts on a tool named Ethereum Improvement Proposal, or, simply, EIP. These strategies get deeply studied in the community to improve some aspects of the blockchain to boost its operation or add new features.

According to Szilágyi’s thoughts, Ethereum has never had an EIP to set a reduction over its complex protocol, but rather the opposite. Although each proposal appears to have every detail under control, big changes only make the network harder to manipulate, and their execution demands a lot of effort from miners.

He also added that there are few people who are aware of the situation and want to join a broken network, and each change brings Ethereum closer to that position.

Ethereum’s Constant Transformation

Szilágyi’s views are solid and go in parallel with a curious factor about the Ethereum network that appears in its historical evolution: it tends to mutate without a fixed and coherent course.

Although this problem seems to have no end, especially since the appearance of EIP-1559, which sets up the burning of a percentage of the commissions paid in each operation, Ethereum tries to become a deflationary item. As ether is a lesser currency, its value would reach a high peak as long as the demand remains alive over time.

On the other hand, Ethereum also desires to set some improvements over its consensus algorithm, which focuses on how transactions receive validation. With Ethereum 2.0, by the end of 2022, the network will migrate from an ordinary model with Proof of Work or proof of Work to Proof of Stake or proof of participation.

By: Jenson Nuñez