Monthly Update October | Uptober meets high expectations
In this monthly update, we discuss the results of Uptober and the factors that have influenced the BTC price. We also cover a new crypto tax bill and dive into the new MiCA regulation.
As a result, crypto has become a key issue in the election, with many crypto enthusiasts potentially basing their vote on each candidate‘s stance on digital currencies. While Trump has taken a clear stance, Harris has been more cautious, stating that she aims to adopt a more favourable policy than her predecessor. Her relative ambiguity, compared to Trump‘s directness, has contributed to his rising popularity in the crypto sector. As he voices his support, Bitcoin becomes more desirable, and its value rises, as we have seen in recent weeks.
Speculation on the potential outcomes if he wins varies widely. Analysts believe Bitcoin‘s price could rise even further, not just due to Trump‘s victory but also because of the policies he may implement. Should he indeed replace the SEC chair and relax regulations, the U.S. crypto market could thrive, possibly pushing BTC to new highs, with some suggesting it might even reach $100,000.
However, other analysts argue that long-term inflation might ultimately harm Bitcoin‘s value. Nonetheless, it remains uncertain what will happen, as Trump and Harris are currently neck and neck in the polls. Betting markets currently give Trump a 30% higher chance of winning.
This growing interest in Bitcoin via ETFs has also boosted BTC's value. This upward trend continues after September, when the final week recorded $1 billion in inflows. The fact that this level has nearly been reached in a single day highlights the rapid growth in interest in BTC recently.
For current crypto holders, there will be no changes, as they are already required to report their crypto balances.
According to Folkert Idsinga, Dutch State Secretary for Taxation and the Tax Authority, this bill represents an important step in the taxation of cryptocurrencies. This would also align the Netherlands with a bill adopted last year within Europe, called the DAC8 directive.
This directive will come into effect in Europe on January 1, 2026, and aims to increase transparency. Each EU country will require registered crypto companies to report only to their respective tax authorities. This means they will no longer receive requests from multiple member states, as the information can be accessed by all tax authorities. This will significantly reduce the administrative burden for crypto companies.
The Netherlands is also part of the CARF, or Crypto-Asset Reporting Framework, along with 46 other countries. Under this framework, these countries can share all reported crypto data with one another. It also means that data can be shared with non-EU countries that are registered with the CARF, including the United States, Canada, Singapore, and the United Kingdom.
Stakeholders in the Netherlands have the opportunity to respond to the bill. Until November 21, you can express your views or suggestions regarding the proposal. The current plan is to submit the bill to the House of Representatives in the second quarter of 2025.
It was noticed that large amounts were transferred from the wallet to another wallet. It later emerged that this was the work of a hacker who converted everything into stablecoins such as USDT and USDC. Arkham states that the stolen coins are now being laundered.
The U.S. government is one of the largest crypto holders. It is estimated that over 1% of the global Bitcoin supply is held by governments, mostly consisting of seized crypto. Although the U.S. government does not disclose its crypto holdings, analysts are confident that this wallet belongs to the U.S.
Governments often seize crypto, which is then usually sold off. However, presidential candidate Trump opposes this practice, pledging that if elected, he will retain all cryptocurrencies currently held by the government.
Additionally, each crypto provider‘s management team, the assets offered, and adherence to specific legal requirements will be scrutinized. These include trade law, insolvency law, financial services law, anti-money laundering and counter-terrorism financing, professional liability, and fraud. In essence, CASPs will need to map out many of their internal processes to apply for a licence.
There is also the question of how this new regulation will affect the cryptocurrency market in Europe. Companies may choose to bypass the European regulatory framework. Many experts believe that MiCAR might prompt some CASPs to move to more crypto-friendly regions, such as the Middle East, which could negatively impact the European crypto ecosystem. The gaming sector, which also heavily relies on cryptocurrencies, may likewise be significantly affected.
The main objective of MiCAR is to create a transparent framework in which CASPs can demonstrate that they offer reliable services and assets and comply with the highest security standards. For consumers, this means investing with greater confidence. Although investing will always involve risks, MiCAR provides more transparency for both crypto holders and providers.
Uptober: where does Bitcoin stand?
October seems to have lived up to expectations: Bitcoin typically experiences its strongest annual gains in this month, earning it the nickname "Uptober." This year was no exception. Although the month began on a negative note, the BTC price rose steadily afterward, ultimately climbing by 16%. In the final days, the $70,000 mark was even surpassed. The question now is: What caused this, and can Bitcoin maintain these levels?U.S. Elections
One of the main factors relates to the current elections in the United States, where Republican Trump faces off against Democrat Harris. Trump has expressed a pro-crypto stance, outlining his ambitions to dismiss the SEC chair, create a national Bitcoin reserve, and even launch his own crypto platform called The DeFiant Ones. In doing so, he hopes to win over the crypto community.As a result, crypto has become a key issue in the election, with many crypto enthusiasts potentially basing their vote on each candidate‘s stance on digital currencies. While Trump has taken a clear stance, Harris has been more cautious, stating that she aims to adopt a more favourable policy than her predecessor. Her relative ambiguity, compared to Trump‘s directness, has contributed to his rising popularity in the crypto sector. As he voices his support, Bitcoin becomes more desirable, and its value rises, as we have seen in recent weeks.
Speculation on the potential outcomes if he wins varies widely. Analysts believe Bitcoin‘s price could rise even further, not just due to Trump‘s victory but also because of the policies he may implement. Should he indeed replace the SEC chair and relax regulations, the U.S. crypto market could thrive, possibly pushing BTC to new highs, with some suggesting it might even reach $100,000.
However, other analysts argue that long-term inflation might ultimately harm Bitcoin‘s value. Nonetheless, it remains uncertain what will happen, as Trump and Harris are currently neck and neck in the polls. Betting markets currently give Trump a 30% higher chance of winning.
Bitcoin ETFs
Another factor driving Bitcoin's success is the significant inflows into Bitcoin ETFs. Every day, hundreds of millions are invested, with a peak on October 30th when nearly $900 million in inflows were recorded, $872 million of which came from Blackrock‘s fund alone.This growing interest in Bitcoin via ETFs has also boosted BTC's value. This upward trend continues after September, when the final week recorded $1 billion in inflows. The fact that this level has nearly been reached in a single day highlights the rapid growth in interest in BTC recently.
Crypto supervision more strict in the Netherlands
A bill has been submitted to the government requiring crypto services to collect and share user data with the Tax Authority. The goal of this bill is to create greater transparency regarding crypto ownership, thereby preventing tax avoidance and evasion.For current crypto holders, there will be no changes, as they are already required to report their crypto balances.
According to Folkert Idsinga, Dutch State Secretary for Taxation and the Tax Authority, this bill represents an important step in the taxation of cryptocurrencies. This would also align the Netherlands with a bill adopted last year within Europe, called the DAC8 directive.
This directive will come into effect in Europe on January 1, 2026, and aims to increase transparency. Each EU country will require registered crypto companies to report only to their respective tax authorities. This means they will no longer receive requests from multiple member states, as the information can be accessed by all tax authorities. This will significantly reduce the administrative burden for crypto companies.
The Netherlands is also part of the CARF, or Crypto-Asset Reporting Framework, along with 46 other countries. Under this framework, these countries can share all reported crypto data with one another. It also means that data can be shared with non-EU countries that are registered with the CARF, including the United States, Canada, Singapore, and the United Kingdom.
Stakeholders in the Netherlands have the opportunity to respond to the bill. Until November 21, you can express your views or suggestions regarding the proposal. The current plan is to submit the bill to the House of Representatives in the second quarter of 2025.
American government robbed of crypto
$20 Million in crypto has been stolen from a U.S. Government wallet. According to research firm Arkham Intelligence, $20 million in crypto has been stolen from a U.S. government wallet. This amount was originally seized by the government in 2016 following the hack of the Bitfinex crypto exchange. At that time, Bitfinex was hacked for 119,756 bitcoin, which was worth approximately $72 million. In early 2022, the U.S. government managed to recover part of these funds, which were then stored in this wallet.It was noticed that large amounts were transferred from the wallet to another wallet. It later emerged that this was the work of a hacker who converted everything into stablecoins such as USDT and USDC. Arkham states that the stolen coins are now being laundered.
The U.S. government is one of the largest crypto holders. It is estimated that over 1% of the global Bitcoin supply is held by governments, mostly consisting of seized crypto. Although the U.S. government does not disclose its crypto holdings, analysts are confident that this wallet belongs to the U.S.
Governments often seize crypto, which is then usually sold off. However, presidential candidate Trump opposes this practice, pledging that if elected, he will retain all cryptocurrencies currently held by the government.
Market in Crypto-Assets Regulation
Next year is a crucial year for the crypto industry. This year, all crypto exchanges, brokers, and platforms are already busy preparing for the new MiCA regulation—Markets in Crypto-Assets Regulation—which will take effect across Europe on December 30, 2024. For existing crypto providers to continue operating from 2025 onwards, they must comply with the regulations and obtain a MiCAR licence. Coinmerce, among others, is actively working to secure this licence in the coming year. Why MiCAR? The goal of MiCAR is to further harmonize crypto-asset regulations across Europe, creating a level playing field and supporting innovation. This regulation also enhances consumer protection. Finally, MiCAR establishes uniform rules for crypto markets, which is crucial for investors in crypto-assets and the stability and integrity of the crypto ecosystem. As such, MiCAR is an important step towards ensuring financial stability and facilitating a fair market.What will happen?
The new rules primarily aim to safeguard the security of users and their assets. This means that crypto providers, also known as Crypto-Asset Service Providers (CASPs), must improve and specify various platform elements. For example, stricter rules will govern the issuance of stablecoins, and cybersecurity measures will be monitored.Additionally, each crypto provider‘s management team, the assets offered, and adherence to specific legal requirements will be scrutinized. These include trade law, insolvency law, financial services law, anti-money laundering and counter-terrorism financing, professional liability, and fraud. In essence, CASPs will need to map out many of their internal processes to apply for a licence.
Impacts Within and Beyond Europe
MiCAR also mandates that stablecoin issuers hold at least 60% of their reserves with European banks. Some analysts see this as a potential risk: if banks were to fail, it might not be possible to guarantee full repayment of all funds.There is also the question of how this new regulation will affect the cryptocurrency market in Europe. Companies may choose to bypass the European regulatory framework. Many experts believe that MiCAR might prompt some CASPs to move to more crypto-friendly regions, such as the Middle East, which could negatively impact the European crypto ecosystem. The gaming sector, which also heavily relies on cryptocurrencies, may likewise be significantly affected.
The main objective of MiCAR is to create a transparent framework in which CASPs can demonstrate that they offer reliable services and assets and comply with the highest security standards. For consumers, this means investing with greater confidence. Although investing will always involve risks, MiCAR provides more transparency for both crypto holders and providers.