Crypto Market Overview April 5th | Dex-Trade
DOGE Prices Soar as Musk Buys Twitter Shares
New evidence of the "Mask effect": after the news that the entrepreneur became the largest sole shareholder of the social network Twitter, the shares of the media giant soared by 22%, and the rate of the legendary meme-crypto Dogecoin experienced a powerful boost and went straight to a two-month high. Where does this hype come from? Binance Labs Chief Investment Officer Ken Lee believes that Musk's investment could help advance the platform's cryptocurrency initiatives and even lead to the integration of DOGE into the social media platform. And some global crypto market analysts agree with this state of affairs. However, it remains to be seen whether Musk will be able to push such initiatives to the direct management of Twitter and its other shareholders. At least this will not be easy, since the entrepreneur owns 9.2% of the company's shares, which are passive securities, i.e. exclude the active participation of the owner in decision-making, on which the future of the company depends. In addition, it’s worth remembering that all the loud statements or actions of a businessman led only to short-term jumps in the price of DOGE. This concerned both his personal position and the news about the launch of support for the meme-crypto in Tesla. Therefore, now it is clearly not worth it to follow the wave of hype and desperately invest in Dogecoin. But it’s likely that this will make sense for the foreseeable future.
Singapore Authorities Tighten Regulatory Policy for Crypto Companies
Singapore authorities have closed a loophole in the law that allows domestically registered virtual asset service providers (VASPs) to provide their business services abroad without the oversight and scrutiny of the country's financial regulator. From now on, crypto-providers, services or developers will be required to have a special license issued to combat money laundering and financing of terrorism. The new measures under the bill give the Monetary Authority of Singapore (MAS) more power to issue restraining orders while expanding the regulator's ability to deal with VASPs. Recall that MAS is both the Central Bank and the financial regulator of Singapore. By the way, the new law also provides the regulator with additional powers to control the improvement of the security of financial institutions and their resistance to hacking. If this does not happen, crypto companies risk being fined up to S$1 million (about $737,580). Recall that in January, MAS issued guidelines requiring crypto providers to limit advertising and marketing campaigns that did not clearly explain to consumers the risks associated with virtual assets.
Madness Grows Stronger: Indian Politician Called for an Increase in Crypto Taxes
Member of the Indian upper house of parliament and a member of the ruling Bharatiya Janata Party, Sushil Kumar Modi, in a recent interview called for a 50% tax increase on cryptocurrency transactions. In his opinion, this step is designed to discourage the citizens of the country from investing in crypto assets, since they are risky. The former Deputy Minister of Bihar also pointed out that the country does not currently have a robust cryptocurrency regulation system and that more work needs to be done in this area. “Nobody understands what this crypto is. That’s why we need to discourage and disincentivize trading and investing in the asset class,” — Modi added. Recall that from April 1, the Government of India is already levying a 30% tax on all income received from the sale of digital assets, and will also remove 1% tax from the source for each cryptocurrency transaction starting from July 1. Investors will also not be able to recover losses through other trades to offset the gains made in this market. By the way, due to the new tax rules, some crypto exchanges have already recorded a drop in trading volume in India from 15% to 50% since April 1.