Blockchain & cryptocurrency market summary news – May 14
China busted a crypto currency conversion ring worth $295 million
Chinese police have busted an underground banking ring that used cryptocurrency to trade foreign currencies worth $295 million. They arrested six suspects involved in illegal currency exchange activities with South Korea, using Chinese yuan and Korean won. The suspects took advantage of crypto's anonymity and decentralization in transactions. They used domestic accounts to receive and transfer money, and made transactions that did not need to be declared. The suspects also supported Korean companies and cross-border trade platforms. This is not the first time China has taken legal measures against crypto, as the country has strict control policies.
Metaplanet uses Bitcoin as a reserve asset while Japan sits on a growing "mountain of debt".
Metaplanet Company has announced the use of Bitcoin as a reserve asset in response to Japan's rising public debt. They bought 117.7 BTC and are pursuing the same strategy as MicroStrategy. Metaplanet also invests in Web3 and the commercial real estate sector. The company plans to hold Bitcoin for the long term to minimize taxable profits and boost it by issuing long-term yen-denominated debt. This meets the need in the context of Japan facing high public debt and a difficult financial situation. Bitcoin is considered a potential reserve asset in difficult financial situations. The yen has lost value and Japan has difficulty raising interest rates.
Another 10-year-old Bitcoin warehouse was transferred
Two Bitcoin wallet addresses that have been inactive for more than 10 years have moved a total of 1,000 BTC worth more than $62.8 million. This transaction has raised many questions about the origin and motives of this event. The two BTC transfers were separated by a very short period of time. The first wallet address (16v…zEa) transferred 500 BTC (equivalent to 31.4 million USD). Just 20 minutes later, according to on-chain data, another address, (1DU…fC5) also made a transfer of 500 BTC. According to Lookonchain, both addresses above received exactly 500 BTC on the same day, September 12, 2024, when Bitcoin was trading for about 124 USD.
The BTC from the first wallet address has been split and transferred to other addresses, while the BTC from the second address has not been transferred elsewhere. The purpose of the “whale” wallets and the identity of the wallet owners remain unknown. There is speculation that owners may be selling Bitcoin through OTC transactions to “take profits” or are moving BTC to new, more secure cold wallets. BTC price was not affected too much by this information and had a slight recovery. Currently BTC is trading at $62,500.
El Salvador launches Bitcoin investment data public platform
El Salvador has announced a platform to make Bitcoin investment data public, becoming the first country in the world to do so. The platform gives everyone public access to the country's Bitcoin buying and holding data. El Salvador has invested heavily in Bitcoin and currently owns about 5,748.76 BTC worth about $360 million. The country has transferred more than 5,600 Bitcoins to cold wallets for safe storage. The El Salvador government also exempts personal income tax on foreign investments, to attract FDI capital. The cryptocurrency community appreciates El Salvador's transparency, and the country's mempool is welcomed by the community.
