July 2024 has been quite a month for the crypto industry! We finally saw the launch of Ether spot ETFs, while India held firm on its tough crypto tax laws despite pushback from the industry. In a shocking event, $235 million was stolen from WazirX, India’s biggest crypto exchange. Plus, Gate.io decided to pull out of Japan due to regulatory issues. <\/p>\n\n\n\n
Catch up on all the major crypto news and happenings from July 2024 right here.<\/p>\n\n\n\n
July 23, 2024, was a big day for crypto as U.S. spot ether ETFs finally made their debut.<\/p>\n\n\n\n
These ETFs started trading on major platforms like Cboe, Nasdaq, and NYSE. On the first day, the total trading volume hit $1.07 billion<\/a>. Grayscale’s Ethereum Trust led the pack with $450 million in trades, followed by iShares at $245 million and Fidelity’s ETF at $137 million. Other players like Franklin Templeton, VanEck, Bitwise, 21Shares, and Invesco also launched their ETFs.<\/p>\n\n\n\n While these numbers are impressive, they fall short of the $4.6 billion seen during the bitcoin ETFs launch<\/a> in January 2024.<\/p>\n\n\n\n The fees for these ETFs vary, with Franklin Templeton’s at 0.19% and Grayscale’s trust going up to 2.5%. Interestingly, Grayscale also introduced a “mini” ETF with a 0.15% fee, although fewer fee waivers are available compared to bitcoin ETFs.<\/p>\n\n\n\n Market analysts are optimistic about ether ETFs, predicting they could attract $1 billion in monthly inflows. Despite the positive outlook, ether’s price remained steady on launch day, closing at $3,486.75.<\/p>\n\n\n\n The SEC’s stance played a critical role in the ether ETF launch. While they haven’t officially classified ether as a commodity, it allowed these ETFs as commodity-based trusts. However, the SEC’s decision to exclude the “staking” mechanism in these ETFs might sway some investors.<\/p>\n\n\n\n The introduction of ether ETFs is another huge win for the crypto industry. It not only reflects investor interest in digital assets beyond Bitcoin but also adds a layer of legitimacy to the market.<\/p>\n\n\n\n India’s crypto tax policy<\/a>, introduced in July 2022, imposes a hefty 30% tax on crypto profits and a 1% tax deducted at source (TDS) on all transactions. This policy is one of the toughest worldwide, aimed at tracking transactions and reducing speculative trading. However, it hasn’t worked out as planned.<\/p>\n\n\n\n Recently, the Esya Centre, a New Delhi-based think tank, proposed lowering the TDS from 1% to 0.01%. Their study<\/a> found that the high TDS pushed about 5 million crypto traders to move their activities offshore, causing a $420 million loss in potential government revenue. The report pointed out that the tax didn’t curb speculation or improve transparency as intended.<\/p>\n\n\n\n The 30% tax and 1% TDS led to a sharp drop in crypto trading in India. According to an article by Economic Times<\/a>, trading volumes on Indian exchanges fell by 97%, and active users decreased by 81%. This has left local exchanges struggling to survive.<\/p>\n\n\n\n Despite multiple requests from the crypto community to reduce the TDS, Finance Minister Nirmala Sitharaman\u2019s 2024 Union Budget speech on July 23 didn’t address cryptocurrencies. The government\u2019s refusal to lower the TDS suggests it doesn’t see crypto as a serious business, equating it more with gambling.<\/p>\n\n\n\n Despite these tough tax rules, India remains a global leader in cryptocurrency adoption, topping Chainalysis’ 2023 Global Crypto Adoption Index<\/a>.\u00a0<\/p>\n\n\n\n On July 18, 2024, WazirX, a major Indian cryptocurrency exchange, got hacked, losing a whopping $235 million<\/a>.<\/p>\n\n\n\n Web3 security firm Cyvers spotted the hack when they noticed some weird transactions from WazirX’s “Safe Multisig” wallet on Ethereum.<\/p>\n\n\n\n \ud83d\udea8ALERT\ud83d\udea8Hey @WazirXIndia<\/a>, Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH<\/a> network.India Sticks to Strict Crypto Tax Laws Despite Industry Backlash<\/strong><\/h2>\n\n\n\n
$235 Million Stolen from India’s Largest Crypto Exchange, WazirX<\/strong><\/h2>\n\n\n\n
A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash<\/a>.
The suspicious\u2026 pic.twitter.com\/4sajAwd4Hb<\/a><\/p>— \ud83d\udea8 Cyvers Alerts \ud83d\udea8 (@CyversAlerts) July 18, 2024<\/a><\/blockquote>