The UAE has introduced amendments to its VAT regulations, exempting the transfer and conversion of digital assets, including cryptocurrencies, from VAT. This change, which applies retroactively from January 2018, will also benefit companies involved in managing investment funds. Businesses dealing with virtual assets are urged to review their past VAT positions to ensure proper input tax recovery, which enables them to claim back VAT paid on eligible purchases.
Virtual assets in the UAE are defined as representations of value used for digital trading or investment, excluding fiat currencies or financial securities. Meanwhile, regulators in the UAE have stepped up efforts to refine crypto regulations. Dubai’s VARA and the SCA have agreed to supervise virtual asset service providers jointly, allowing VASPs licensed in Dubai to operate across the wider UAE.
Additionally, the Virtual Asset Regulatory Authority has tightened rules on marketing, requiring firms to include disclaimers highlighting the volatility and potential loss in the value of digital assets. This move aims to ensure greater transparency in the rapidly growing crypto market.
LEGO Group’s website was briefly compromised on 5 October, with a scam promoting a fake ‘LEGO Coin’ token appearing on the homepage. The message encouraged users to purchase the token in exchange for ‘secret rewards’ but redirected them to a phishing site. The scam was removed after about 75 minutes, and LEGO confirmed that no user accounts had been compromised.
LEGO has since assured customers that the issue has been resolved and steps are being taken to prevent future incidents. Despite earlier hints in 2021 about entering the NFT space, LEGO has not officially pursued any crypto-related ventures.
This incident highlights the ongoing threat of cryptocurrency scams, which saw $127 million stolen from victims in the third quarter of 2024, with September alone accounting for $46 million in losses.
The excitement around ‘Uptober,’ a historically bullish month for crypto, is fading as the market retreats, sparking a shift in social media chatter towards terms like ‘Selltober’ and ‘Octobear.’ Analytics platform Santiment noted that optimistic sentiment has dropped since the start of October, as traders now face a more bearish outlook. Despite this, some experts suggest there is still potential for a short-term rebound.
Bitcoin has slightly recovered after briefly dipping below $60,000 on 3 October, but overall market conditions remain shaky. The crypto market has shed $200 billion in total value since the start of the month, with technical indicators suggesting overextended rallies and sell-offs driving prices down. Historically, Bitcoin has performed well in October, often seeing gains mid-month, leaving some hoping the pattern will repeat despite current bearish trends.
Visa has introduced a blockchain-based platform designed to help financial institutions integrate fiat-backed tokens. The Visa Tokenized Asset Platform (VTAP) will allow banks to mint, transfer, and redeem tokens on public blockchain networks, such as Ethereum. BBVA, a leading Spanish bank, is set to pilot this platform by 2025, aiming to bridge the gap between traditional banking and blockchain technology.
The platform is designed to integrate with existing banking systems using APIs, allowing banks to explore tokenisation use cases. It also offers programmable features to automate complex credit lines and release payments based on smart contract conditions.
Despite Visa’s cautious approach to stablecoin adoption, citing concerns over automated transactions, the platform marks a significant step toward blending blockchain technology with traditional financial services.
PayPal has recently completed its first business payment using its USD-pegged stablecoin, PYUSD, to Ernst & Young via SAP’s digital currency hub. The transaction, made public in early October, highlights how corporations can utilise stablecoins for instant and seamless payments. PayPal launched PYUSD in August 2023, and it has rapidly gained traction, with a market capitalisation of $699 million.
Stablecoins pegged to assets such as the US dollar, provide businesses with a more stable payment option than the often volatile cryptocurrency market. PayPal’s blockchain executive, Jose Fernandez da Ponte, emphasised the appeal of stablecoins in corporate finance, noting the practicality of this digital asset for Chief Financial Officers. Meanwhile, fintech companies like Robinhood and Revolut are also exploring their stablecoins as regulations worldwide, particularly in Europe, become more apparent.
Tether’s USDT has long dominated the stablecoin market, which has a market cap nearing $120 billion, far ahead of competitors like USD Coin. However, with PayPal and other firms entering the space, competition in the stablecoin sector is expected to intensify.
Cryptocurrency index investing is emerging as a strategic solution for managing the volatility of the digital asset market. By bundling multiple cryptocurrencies into a single investment vehicle, index funds allow investors to diversify risk and gain exposure without the complexities of managing individual assets. It approach is particularly appealing to institutional investors looking to include crypto in their portfolios.
The growing popularity of crypto index funds reflects their ability to streamline investment strategies. These funds offer a range of options, from focusing on stable assets like Bitcoin and Ether to targeting high-growth sectors such as decentralised finance. As the market matures, crypto index investing continues to attract professional investors seeking a balanced and risk-managed entry into the digital economy.
Russian authorities have initiated a criminal investigation against the founders of UAPS and Cryptex, accusing them of generating over $40 million in illegal profits. It follows allegations of running unlicensed banking operations, unauthorised access to protected information, and creating a payment infrastructure that supported cybercriminal activities. The probe is being led by Moscow’s Investigative Committee.
UAPS, established in 2013, and Cryptex, launched in 2018, were primarily used by criminals for illegal currency exchanges and money laundering. In 2023 alone, the network saw more than $1.2 billion in illicit transactions. Russian law enforcement conducted 148 raids across 14 regions, detaining 96 suspects, many of whom face charges of organised crime and illegal banking.
The investigation comes just days after OFAC sanctioned Cryptex and its founder, Sergey Ivanov, accusing them of laundering funds linked to ransomware attacks and darknet markets. US authorities have labelled Ivanov’s other exchange, PM2BTC, as a major money laundering concern.
The US Securities and Exchange Commission (SEC) has announced its intention to appeal a recent court ruling that limits its authority to oversee cryptocurrency markets. This decision stems from a July 2023 ruling by US District Judge Analisa Torres, which concluded that the XRP token sold by Ripple Labs on public exchanges does not qualify as a security. As a result, the approximately $757 million in sales of XRP would not fall under the protective regulations enforced by the SEC.
Ripple Labs, which could also appeal aspects of the ruling, has expressed its frustration with the SEC’s move. CEO Brad Garlinghouse labelled the decision to appeal as ‘misguided’ and ‘infuriating,’ yet he remained confident, stating that XRP’s status as a non-security is currently upheld in law. This ongoing legal battle could have significant implications for the broader regulatory landscape surrounding cryptocurrencies in the US.
Polkadot (DOT) has faced a significant downturn, falling nearly 8% in the last 24 hours as rising tensions in the Middle East have prompted investors to seek refuge in safer assets. Currently trading around $4.16, DOT has lost crucial support levels, leaving sellers firmly in control.
The week has been challenging for Polkadot, with the token quickly losing the gains it achieved just a week ago. After rebounding from a low of $3.98 in mid-September to a high of $4.96, the altcoin struggled to maintain its momentum, failing to break the $5 barrier. Following a weekend of selling pressure, DOT saw a sharp decline, slipping below critical support levels and closing Monday at $4.44. Despite a brief attempt to recover, the ongoing geopolitical issues have led to further losses.
Currently, DOT is hovering around $4.10, with strong support at the $4 mark. Should selling pressure continue, it may test this level, which could attract buyers. Analysts suggest that this downturn might present a buying opportunity, noting that DOT is nearing the end of its accumulation phase and could soon break out from its descending triangle pattern. Many believe that long-term prospects remain positive despite short-term volatility.
Overall, while the market sentiment is bearish at present, experts remain optimistic about Polkadot’s potential for recovery and growth in the near future.
Shiba Inu, the second-largest meme coin, has seen a period of stability after a surge that raised its value by 26.4% over the past week, pushing its market cap above $10.8 billion. This rise coincided with a boost in whale activity and continued outflows from centralised exchanges, suggesting growing investor confidence in the coin.
Despite the positive trends, Shibarium’s network has seen a decline in transaction fees, dropping to 0.0025 BONE. New account additions have slowed, but the total number of Shibarium accounts has reached a record 126,750, showing sustained interest in the ecosystem. A portion of BONE generated within Shibarium is converted into SHIB and burned, impacting Shiba Inu’s value.
Shiba Inu’s price has pulled back slightly after hitting a multi-month high, crossing below key resistance levels. However, with the coin holding above its 50-day and 200-day moving averages, there is potential for further upside if it can turn the resistance at $0.000020 into support.
