Crypto weekly news and Market update roundup

Top selected crypto weekly market update and industry news.

Squid Game crypto token collapses in apparent scam

A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam.

Squid, which marketed itself as a “play-to-earn cryptocurrency”, had seen its price soar in recent days – surging by thousands of per cent. However, as the BBC reported, it was criticized for not allowing people to resell their tokens.

This kind of scam is commonly called a “rug pull” by crypto investors. This happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with the money raised from sales. Squid’s developers have made off with an estimated $3.38m (£2.48m), according to technology website Gizmodo.

Brazilian federal deputy proposes crypto payment option for workers

Federal Deputy Luizão Goulart, a Brazilian congressman, proposed a bill to legalize crypto payments as a mode of payment for public and private sector workers.

Goulart’s proposal seeks a new law that allows all Brazilian workers to have an option to request employers for remuneration in cryptocurrencies. However, the bill warrants crypto payments to be made only after selling a mutual agreement between the workers and the employer. According to the translated version of the bill:

“The limits of the percentage of payment (remuneration) in cryptocurrencies will be of the worker’s free choice. Any imposition by the employer will be prohibited.”

The bill highlights the evolution of finance — from a barter system and fiat currencies to Bitcoin (BTC) — focusing on the decentralization aspect which removes the reliance on “a single person or a central entity.”

South Africa has introduced stricter rules for crypto traders 

Crypto assets continue to be a concern for governments and regulators around the world as their novelty, diversity and accessibility opened them up to scrutiny from fiscal authorities, while their volatility opened investors up to susceptibility.

National Treasury recently published a report that evaluated South Africa’s anti-money laundering and counter-terrorist financing measures.

The report, a combined effort by the Financial Action Task Force (FATF) and the Eastern and Southern Africa Anti-Money Laundering Group, revealed that South Africa has major deficiencies in regulating crypto assets, especially crypto asset service providers (CASPs).

Crypto regulation is not a popular concept among investors, said Thomas Lobban, legal manager of crypto-asset taxation at Tax Consulting SA. “While anonymity and freedom still inform the appeal of cryptocurrencies, it has been proven that these volatile assets require regulation,” he said.

“This is not just for the overall good of the economy and the fiscus, but to protect people from the dangers associated with crypto investment.”

Though there were numerous scams reported, it was MTI Holdings that dealt the first major blow to crypto credibility in South Africa