Pro-Crypto UK PM, Mastercard Bringing Crypto to Traditional Finance, and More – In Crypto

Pro-Crypto UK PM, Mastercard Bringing Crypto to Traditional Finance, and More – In Crypto

In Crypto; TLDR

  • The new UK Prime Minister is pro-crypto; major reforms are expected.
  • Mastercard is working with Paxos to bring crypto trading to banks
  • Redditors are jumping on the NFT train; almost 3 million crypto wallets opened
  • The IRS is planning to include a “Digital Assets” category in the 2022 tax year
  • SEBA, the crypto bank, has launched a custody service for Ethereum NFTs

Newly appointed UK Prime Minister, Rishi Sunak, known to be crypto-friendly

Post Liz Truss’ dramatic exit after 45 days as Prime Minister, Rishi Sunak has taken charge of the office. Crypto experts are excited about the appointment as Sunak is said to be pro-crypto, and it seems like only a matter of time before he makes major reforms that can shape crypto’s future in the UK.

In the past, Sunak has proposed creating a task force that evaluates the potential of developing a central bank digital currency. He has advocated for stablecoins to be recognized as a valid payment method. And he has openly stated his desire to make the UK an international hub for crypto.

Mastercard to bring crypto trading to banks, joins hands with Paxos

Mastercard has launched a program called Crypto Source, where they will be the bridge between Paxos, a crypto trading platform, and banks to allow traditional institutions to offer crypto trading to their customers.

During this collaboration, Paxos will handle the custody and trading, while Mastercard will deal with the security and regulations side. This move could potentially increase crypto adoption among the masses since a trusted name will be handling regulatory compliance. The program is expected to launch in the last quarter of 2022.

Redditors create 3 Million crypto wallets; trading volume hits all-time high

Reddit jumped on the NFT bandwagon in July 2022, and experts expected it to blow up in their faces, given the general sentiment surrounding NFTs. Well, it blew up, alright. 

It’s become one of Reddit’s and NFTs’ biggest success stories, selling out the first 40,000 NFTs they put up in record time. They sold the NFTs at fixed prices, and owners could make them their avatars on and off Reddit. 

As of today, Reddit has more than 3 million users with crypto wallets. And the growth curve doesn’t seem to be flattening anytime soon. Reddit’s success shows an appetite for NFTs among the general audience.

Invest in NFTs now!

IRS makes room for NFTs in tax guidance draft

The Internal Revenue Service has made a change in its annual tax guidance draft to account for NFTs. The term “digital assets” has replaced “virtual currency,” which explicitly mentions NFTs as digital assets.

Regulations, while they may seem restrictive, only help build trust in the general public, and this, in turn, is bound to increase the adoption of blockchain technology. The IRS guidance includes NFTs, mining, and staking, among other blockchain terms. This suggests increased knowledge of crypto in the agency, making it easier for investors who want all affairs to remain regulated and aboveboard.

Swiss crypto bank SEBA launches a custody service, Ethereum NFTs to be held

The crypto-friendly Swiss bank, SEBA, has created a solution for NFT holders who do not want to manage private keys to their wallets themselves– an institutional custody service. It only allows clients to store Ethereum-based NFTs, at least for now. But considering that most popular NFT collections belong to the Ethereum network, this shouldn’t be a big deal for most collectors.

A regulated bank offering NFT custody services is a big deal. As for NFTs, the digital asset continues to attract investors, with last month’s sales hitting $947 million.

Other Highlights

  • British lawmakers vote to make crypto a regulated financial asset
  • Bitcoin hits the $21,000 mark, the highest value in more than a month
  • Western Union possibly making moves to launch a crypto token

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