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Canadian Crypto Exchange CatalX Temporarily Suspends Trading and Withdrawals

Catalyx, a Canadian cryptocurrency trading platform, announced a security breach on Thursday. It involves the loss of crypto assets in the exchange’s custody.

Crypto Exchange Security Breach

CatalX CTS Ltd., operator of the cryptocurrency exchange, said in a press release that the security incident is suspected to involve an employee.

The events disrupted normal trading and withdrawal activities on the Canadian platform.

It said: “Due to the loss, all cryptocurrency and fiat currency withdrawals from the Platform and all trading activities on the Platform have been temporarily suspended.”

Termination order details

Based on the December 21, 2023 injunction order, the Alberta Securities Commission announced the confidentiality of the admitted evidence.

The order was granted pursuant to sections 33 and 198 of the Securities Act (Alberta) and requires a 15-day pause in the trading and purchasing of any securities or derivatives by the defendants. The order will expire on January 5, 2024, if not extended by the Commission.

Although the crypto exchange has ceased all trading and withdrawals, it is being audited by Deloitte.

Crypto Losses in 2023

However, this is not the first incident where a crypto company has lost funds due to an internal breach.

In early July 2023, reports revealed that crypto payments provider CoinsPaid suffered a loss of $37 million. The breach reportedly resulted from hackers gaining access to an employee’s computer through a misleading job offer. The employee was later tricked into installing a program that led to the theft of critical data.

In a separate incident, LastPass, a company specializing in password data encryption, faced a security breach in its cloud storage service due to employee credentials being compromised.

According to a recent De.Fi report, the decentralized finance sector faced losses totaling around $1.95 billion in 2023. Meanwhile, Ethereum emerged as the most attacked blockchain, suffering around $1.35 billion in losses in 170 violations.

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Binance launches new web3 AI gaming platform

Sleepless AI is a web3 and AI integrated gaming platform that offers a new interactive gaming experience. The platform allows users to interact with AI-based features in a gaming environment.

The platform will be available tomorrow and will allow users to stake BNB, FDUSD, and TUSD to earn AI tokens over a seven-day period. AI tokens will be able to be traded on Binance from January 4th, with several trading pairs available, including AI/BTC and AI/USDT.

The total supply of AI tokens is set at 1 billion, with 70 million designated for Launchpool rewards. The distribution is part of Binance’s strategy to encourage participation in the new gaming platform. The platform’s unique offering lies in the use of AI to create more interactive and personalized gaming experiences.

Users also have the flexibility to withdraw funds at any time and switch between the different funds available. Additionally, Binance’s BNB Vault and locked products are configured to support Launchpool, allowing BNB staked in these products to participate in Launchpool and automatically earn rewards.

BNB also saw a notable recovery in the market today, with the token rising to $296, its highest price in the last six months. The altcoin is up more than 11% today and 17.5% in the last week.

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Japan to introduce major cryptocurrency tax reforms in 2024

In a recent cabinet meeting held on December 22, the Japanese government finalized the draft cryptocurrency tax reform for fiscal year 2024. This reform comes with a significant change that affects companies that hold crypto assets. The change eliminates the period-end mark-to-market tax that previously applied to companies holding crypto assets issued by third parties (virtual currencies).

As a result, companies will now only pay taxes on profits from the sale of virtual coins and tokens, aligning with the tax system for individual investors. This change aims to ease the tax burden on companies involved in holding and operating crypto assets.

Japan ends cryptocurrency tax on unrealized gains

The revision changes the scope of application of the end-of-period mark-to-market adjustment under the Corporate Tax Law. Previously, companies recorded profits or losses based on the difference between the market value and the book value of crypto assets at the end of the fiscal year. The new policy excludes this valuation at market price if the asset is assumed to be held continuously.

The tax reform responds, in part, to a request submitted by the Japan Crypto Asset Business Association (JCBA) for the 2024 tax reform. The change will promote the growth of Web3, support domestic startups using blockchain technology and attract projects international.

Last year’s tax reform exempted only virtual currencies issued by companies themselves from taxes at the market price. However, growing calls for equal treatment for cryptocurrencies issued by other companies influenced this year’s review.

Will this boost cryptocurrency adoption in Japan?

The 2024 tax reform draft also includes plans to reduce income tax and residence tax by 40,000 yen per person starting in June 2024, tax reductions for companies, and the establishment of a new tax system for sectors strategic and innovation. This is likely to result in a substantial decline in revenue of 3,874.3 billion yen for national and local governments, making it the third largest decline since fiscal year 1989.

The bill requires approval from the House of Representatives and the House of Councilors.

This tax reform marks a crucial step in the introduction of separate taxes (20%) and loss carryover deductions, meeting the wishes of cryptocurrency investors. However, discussions regarding the calculation of profits and losses on crypto asset transactions, including the imposition of a flat tax on the conversion of crypto assets into legal tender, and the consideration of “pass-through” deductions for three years from of the following year, are left for future deliberations. . The development of the corporate tax system is expected to stimulate active discussions on future tax reforms in the crypto space.

Japan has always maintained a friendly approach to cryptocurrencies and therefore remains the preferred destination for cryptocurrency companies. The country has made crucial reforms in a timely manner. Earlier this year, Japan allowed venture capital firms to invest directly in cryptocurrencies.

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Bitcoin cryptocurrency exchange Cryptocurrency Investment Cryptocurrency news

Market cap of Bitcoin and Altcoins will reach $1.85 trillion and $2.2 trillion

Amid the current financial scenario, analysts have focused their attention on the cryptocurrency market, which is showing signs of recovery. Michaël van de Poppe, a respected figure in the trading community, recently predicted that the total cryptocurrency market capitalization could rise to a staggering $2.2 trillion. This projection comes at a time when the market is going through a consolidation phase, falling below the crucial mark of 1.6 billion dollars.

The role of Bitcoin in market dynamics

Bitcoin, the leading cryptocurrency, plays a key role in this projected growth. It recently surpassed major resistance at $38,000, prompting optimistic predictions about its future trajectory. Van de Poppe correlates the advance of Bitcoin with the potential increase in the market capitalization of cryptocurrencies. He suggests that breaking through the $1.6 trillion resistance could push the market to pre-Earth collapse levels, targeting the first $1.85 trillion and eventually reaching $2.2 trillion.

Altcoins Preparing for a Milestone

At the same time, altcoins are not far behind in this potential financial revolution. EGRAG, another market analyst, predicts that the market capitalization of altcoins will reach the trillion-dollar mark. This level of growth has not been seen since the collapse of the Terra ecosystem in May.

EGRAG recalls the dramatic decline that followed, falling from $1.268 billion in April 2022 to a low of $485 billion two months later. Currently at a 19-month high of $735.5 billion, the altcoin market is recovering steadily, indicating a possible uptrend similar to the post-May 2022 scenario.

Implications for Bitcoin and Altcoin Valuations

If these predictions come true, the impact on individual cryptocurrencies could be substantial. For Bitcoin, a total market capitalization of $1.2 trillion would mean a price increase to around $61,301 per token. Meanwhile, altcoins could see a 2.3x increase in valuation, reaching as much as $1.7 trillion. This outlook has led analysts to advise investors to watch out for a recovery around March 2024.

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Thai bank supports token issuance for profitable fundraising

Thai bank Kasikornbank Pcl is reportedly leading the way in digital asset financing options for businesses. The bank’s co-president, Pipit Aneaknithi, told Bloomberg in an interview: “We are advising some clients to issue tokens to raise funds.”

Thai Bank Crypto Advice for Fundraising

This is another bold move for the Thai bank after acquiring licensed digital asset exchange Satang Corp. The development marks the integration of a traditional financial institution into cryptocurrency trading. This is especially rare because regulators are taking a cautious approach to creating a cryptographic framework following some high-profile failures in the industry.

Meanwhile, Kasikornbank or K-Bank has established specialized divisions for blockchain and virtual token custody services. The lender has placed Aneaknithi “at the forefront of reforming the bank’s entire digital strategy.”

Thai lender sees potential in digital tokens

Aneaknithi told the newspaper: “We see potential in this market. “We are serious about developing a digital asset ecosystem that will be highly profitable compared to traditional platforms.”

The bank’s focus on digital assets comes as Aneaknithi emphasizes the profitability of issuing tokens compared to conventional lending or selling shares. He also imagines companies offering yield-tradable tokens.

Meanwhile, Thailand will review its income tax laws from January 1, 2024. This review will affect profits from cryptocurrency trading, offshore accounts and international stock brokers.

Despite the upcoming rules, cryptocurrency leader Binance began trading in Thailand in November. Binance Holdings forayed into the Southeast Asia region after partnering with Gulf Energy Development. The joint venture, Gulf Binance Co., received approval from the Securities and Exchange Commission of Thailand last month to begin its crypto exchange services in the country.

Huawei’s recent strategic partnership with Thailand’s Ministry of Digital Economy and Society marks another critical step in Thailand’s digital initiatives. The MoU marks a partnership under its “cloud-first policies” to prioritize digital transformation and adoption of AI technology in Thailand.