Coinbase International Sees $2 Billion in Trade Volume During July

Coinbase International Sees $2 Billion in Trade Volume During July

Coinbase International;'s July trade record, IRS tax policy on staking, Nomura's license in Dubai, CRV continues to dump and FTX's restructuring plan.

Welcome to the latest edition of the Datawallet Daily newsletter - your one-stop-shop for all things crypto. Today, we're diving headfirst into the following stories:

Coinbase sees $2 billion in trade volume during July

According to data from The Block's data dashboard, Coinbase's futures exchange located offshore recorded a remarkable trading volume of nearly $2 billion in July. The company, which will announce its second-quarter earnings on Thursday, introduced its futures exchange registered in Bermuda as part of its "global expansion strategy" in May. 

Initially offering two contracts for Bitcoin and Ether perpetuals, Coinbase International witnessed a total trading volume of $1.963 billion across these contracts throughout the month of July. However, activity gradually decreased over time. It is important to note that despite this impressive performance, Coinbase's new market represents only a fraction of the larger cryptocurrency futures market. In fact, according to The Block's data, BTC futures volumes alone surpassed $550 billion in July.

Staking rewards will have to be reported to the IRS

According to the Internal Revenue Service (IRS), American cryptocurrency investors have a responsibility to declare staking rewards as taxable income. The IRS stated that if an individual stakes their cryptocurrency on a proof-of-stake blockchain and earns rewards, the fair market value of those rewards should be included in their total income for the year in which they gain control over them. This means that investors must report these rewards and ensure that they are accounted for when filing their taxes.

CRV token being shorted following the hack

Curve's CRV token, a decentralized exchange, is experiencing a decline in value due to concerns over the founder's borrowed position facing potential significant liquidation. As a result, traders are increasingly opting for short positions. Based on data from CoinDesk, the cryptocurrency dropped below 50 cents on Tuesday, marking its lowest point since November 22nd. The price has fallen by approximately 30% following Curve's vulnerability to a reentrancy attack that occurred on Sunday.

Nomura’s crypto business received its license in Dubai

Nomura's digital asset subsidiary, Laser Digital, has obtained an operational license from Dubai's Virtual Asset Regulatory Authority (VARA), marking the conclusion of its licensing procedure. According to a statement released on Tuesday, Laser Digital Middle East, situated in the emirate, is now permitted to provide services as a virtual asset (VA) broker-dealer and manage VA investments. This achievement comes after successfully completing all four stages of the licensure process.

FTX releases restructuring plan

FTX.com has presented a comprehensive strategy for its reorganization, aiming to classify the individuals making claims against the bankrupt exchange into distinct groups. This plan sets the stage for FTX.com to resume operations as an offshore entity. The documents filed on July 31 include a preliminary reorganization plan that delineates the company's proposed approach to resolving a significant and intricate assortment of claims.

Other breaking news

Wrapping up

That’s all for today’s edition, folks. Today’s drop covered FTX releasing a restructuring plan which, among other things, looks to allow trading in selected countries. In addition, another exchange, Binance, is reviving its trading business in Japan, while Laser Digital gets a licence in to operate in Dubai. IRS looks to clamp down on staking rewards, and Coinbase reports a very strong July, with trading numbers showing $1.96 billion in value traded. Stay tuned for more updates in our rapidly evolving space.