Bitfarms purchased more than $43M in Bitcoin to start the new year

January 10, 2022 Coin Telegraph

Bitcoin

“Our guiding company strategy at Bitfarms is to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders,” said founder and CEO Emiliano Grodzki.

Canadian crypto mining firm Bitfarms has already bought 1,000 Bitcoin in 2022, making its total holdings of the crypto asset more than $177 million.

In a Monday announcement, Bitfarms said it purchased 1,000 Bitcoin (BTC) for $43.2 million in the first week of January, roughly the same amount the company added to its treasury in both the third and fourth quarters of 2021. According to the mining firm, it currently holds more than 4,300 BTC as of Jan. 10, roughly $177 million at a price of $41,183.

“Our guiding company strategy at Bitfarms is to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders,” said Bitfarms founder and CEO Emiliano Grodzki. “With the dip in BTC while mining hardware prices remain high, we seized the opportunity to move cash into BTC.”

Increased our #Bitcoin holdings 30%

More Info: https://t.co/xCcIUHkWsU

$BITF #BTC #BitcoinMining #Blockchain #NasdaqListed pic.twitter.com/zNz54ps5HK
— Bitfarms (@Bitfarms_io) January 10, 2022

In November, the mining firm announced its intention to build its first data center in the United States following the purchase of a land plot in Washington State. The company’s websites states Bitfarms has a total mining capacity of 106 MW at the time of publication producing 2.2 exahashes per second. According to Grodzki, it aims to raise this rate by more than 260% by the end of the year, to 8 EH/s.

While many in the media still cite the potential environmental impact of crypto mining, Bitfarms claims its facilities in Canada are powered almost entirely by hydroelectric energy. The firm currently has 10 mining farms in operation or under development in countries including the United States, Argentina and Canada.

According to data from Cointelegraph Markets Pro, the price of BTC fell under $40,000 earlier today for the first time since September before returning to more than $41,000.

Kevin O’Leary-backed WonderFi to buy Bitbuy parent company for $162M

January 5, 2022 Coin Telegraph

bitbuy

WonderFi, backed by Canadian billionaire Kevin O'Leary, is looking to increase its footprint in Canada with the acquisition of regulated crypto exchange Bitbuy.

Kevin O’Leary-backed decentralized finance (DeFi) platform WonderFi Technologies is increasing its footprint in Canada by buying the first regulated crypto exchange in the country.

WonderFi agreed to pay close to 206 million Canadian dollars ($162 million) to acquire First Ledger Corp., the parent company of BitBuy. WonderFi aims to become an end-to-end consumer platform for crypto and DeFi, according to the official announcement.

Founded in 2016, Bitbuy became a fully-regulated crypto exchange in Canada after being licensed by the Ontario Securities Commission last November. The platform has over 375,000 users who transacted more than $3.4 billion. The announcement states that Bitbuy generated over $24 million in revenue in the twelve months ending Sept. 30, 2021.

The transaction details revealed that WonderFi would fund the acquisition by issuing 70 million new shares and paying $15.7 million in upfront cash and $23 million in deferred cash via a vendor-takeback note due in 12 months. “WonderFi will retain substantially all current Bitbuy employees and enter into employment agreements with key members of the management team,” the announcement reads.

Highlighting the importance of a licensed marketplace as a gateway to the digital asset economy, WonderFi CEO Ben Samaroo said:

“The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value for the company.”

Kevin O’Leary, a former Bitcoin (BTC) critic who turned to a crypto advocate, commented that the acquisition would enable two teams to “have the bandwidth, assets and licenses to provide an institutional-grade compliant crypto platform to investors interested in exposure to centralized and decentralized financial services.”

In an exclusive interview with Cointelegraph, the Shark Tank celebrity said if stablecoin regulations become more precise, he'd b ready to increase his crypto allocations up to 20%. O’Leary is more interested in the U.S. dollar-pegged stablecoins as he sees them as an effective hedge against rising levels of inflation.

Crypto makes history in 2021: Five instances of governments embracing digital assets

December 29, 2021 Coin Telegraph

bitcoin regulation

While 2021 surely saw a few regulatory setbacks, some governments delivered masterclasses in forward-looking crypto regulation.

As digital asset prices had been hitting new historical highs in 2021, many jurisdictions were increasingly adopting cryptocurrencies like Bitcoin (BTC) and other crypto-based instruments.

In addition to Bitcoin crossing $68,000 for the first time since inception, the year of 2021 will be remembered for Bitcoin’s historical adoption as legal tender in El Salvador. The world’s first-ever Bitcoin exchange-traded fund (ETF) was also inaugurated in 2021, alongside many other benign regulatory developments around the world.

As we glance back at notable global regulatory moments in 2021, Cointelegraph has picked some of the most memorable instances of friendly crypto regulation.

1. El Salvador: The first country in the world to adopt Bitcoin as legal tender

The Republic of El Salvador, the smallest nation in Central America, officially adopted Bitcoin as legal tender on Sept. 7, 2021, becoming the world’s first country to do so. Bitcoin was trading at around $47,000 on the day of Bitcoin’s official adoption in the country.

El Salvador’s bold Bitcoin move took several months to materialize as president Nayib Bukele had first introduced the “Bitcoin Law,” laying the groundwork for BTC’s usage as an official payment method alongside the United States dollar in June 2021. The Salvadoran Legislative Assembly subsequently passed the law, which amassed a supermajority of 62 out of 84 votes.

Known as the “Land of Volcanoes,” El Salvador also moved to deploy its volcanic activity to generate new Bitcoin. In September, president Bukele teased a Bitcoin mining plant powered by volcanic geothermal energy in El Salvador, marking a major case for cutting BTC’s carbon footprint. Soon after, Bukele upped the stakes even further when he announced plans to establish an entire Bitcoin city, funded by BTC bonds.

While the crypto community celebrated El Salvador’s BTC drive, global financial authorities like the International Monetary Fund have expressed skepticism about the government’s move into crypto.

Some people in El Salvador were also unhappy with the Bitcoin Law, with some protesting against Bitcoin adoption due to concerns over its unstable price. Some of the protests even resulted in destroyed Bitcoin ATMs.

2. The United Arab Emirates: CZ’s new home

The UAE emerged as one the most crypto-friendly countries in 2021 as authorities in its capital city of Dubai have been ramping up the efforts to enable the crypto industry’s development.

In January, the Dubai Financial Services Authority (DFSA) announced plans to establish a comprehensive crypto regulatory framework as part of its 2021 business plan. The DFSA subsequently issued several regulatory approvals, including one for a major Canadian investment product, The Bitcoin Fund, in October. DFSA has also been working on regulations for investment vehicles like security and derivative tokens.

UAE regulators also came up with multiple arrangements to officially allow and support crypto trading in several free economic zones in Dubai. The nation has also been making strides in nonfungible tokens (NFT) adoption as its postal operator issued NFTs in November to commemorate the federation’s 50th National Day.

In late 2021, the Dubai World Trade Centre Authority said it will become a comprehensive zone and regulator of cryptocurrencies, products, operators and exchanges.

The UAE is becoming an attractive destination for some of the world’s largest cryptocurrency companies and industry figures. In October, Binance CEO Changpeng Zhao reportedly bought his first home in the “very pro-crypto” Dubai. The Chinese-Canadian business executive had previously claimed that he did not own any real estate as of April 2021.

pic.twitter.com/QrgxaHKAp9
— CZ Binance (@cz_binance) December 21, 2021

3. Canada: Crushing the global Bitcoin ETF race

Canada has earned a place on the list of 2021’s most crypto-friendly countries the moment its main securities regulator cleared the takeoff of the world’s first physically-settled Bitcoin ETF at the beginning of the year.

Launched by Canadian investment firm Purpose Investments in mid-February, the Purpose Bitcoin ETF saw an explosive debut with $564 million in assets under management in just five days after starting trading.

Canada continued leading the global Bitcoin ETF race as Fidelity Canada launched its Fidelity Advantage Bitcoin ETF and the eponymous mutual Bitcoin ETF fund in December.

Canada’s Bitcoin ETFs aren’t just available for retail investors but also provide significant benefits for those who open government-registered investment accounts, such as the Tax-Free Savings Accounts.

On top of crypto ETF dominance, Canada has been working to introduce more clarity to its crypto regulations in recent years, officially recognizing crypto firms as money service businesses in 2020. In late 2021, Canada’s Financial Transactions and Reports Analysis Centre of Canada issued registration for Binance’s local subsidiary, Binance Canada Capital Market.

Canada is ranked the fourth largest country in terms of Bitcoin mining power, accounting for 9.6% of the total global hash rate, according to data from the Cambridge Bitcoin Electricity Consumption Index.

4. Singapore: Crypto is ‘investment in a prospective future,’ says regulator

Singapore continued to be one of the world’s biggest hubs for cryptocurrency exchanges and blockchain enterprises in 2021 as the country’s regulators have done a great deal to nurture the industry.

In November, Singapore welcomed two new institutional-grade Bitcoin funds launched by Fintonia Group, a company regulated by the Monetary Authority of Singapore (MAS). Previously, MAS officially allowed companies like the Australian crypto exchange Independent Reserve and DBS Bank’s brokerage arm, DBS Vickers, to provide digital payment token services in the country.

DBS Bank, Singapore’s largest retail and commercial bank, is one of the largest local companies to make a foray into the crypto industry in the past year. The firm posted tenfold crypto volume growth in Q1 2021 after launching its crypto trading platform, DBS Digital Exchange, in late 2020.

Some companies with close ties to the government of Singapore are reportedly big fans of cryptocurrencies like Bitcoin. Robert Gutmann, CEO of New York Digital Investment Group, claimed in March that Singaporean government-backed holding company Temasek is a major Bitcoin investor.

Singapore is also among the world’s top nations in terms of retail crypto adoption as 43% of Singaporeans own crypto, according to one survey.

Despite local authorities welcoming the crypto industry development, a large number of crypto businesses have apparently failed to receive licenses to operate in Singapore in 2021.

5. Gibraltar: New target for Huobi exchange after Chinese crackdown

Gibraltar, a British Overseas Territory and one of the smallest countries in the world, has been emerging as an attractive location for crypto in 2021.

In November, Gibraltar welcomed Bullish, a new cryptocurrency exchange launched by the EOS.IO protocol developer, Block.one. The company’s local branch previously obtained a distributed ledger technology license from the Gibraltar Financial Services Commission (GFSC).

In September, the GFSC also approved operations of Zubr Exchange Limited, a new local crypto exchange business launched by Sam Bankman-Fried’s crypto giant FTX.

The government of Gibraltar has been strengthening its ties with global blockchain and crypto industry players. In March, Gibraltar’s minister for digital and financial services, Albert Isola, became an ambassador for the Global Blockchain Business Council, a major industry association.

Some of the world’s biggest crypto exchanges entered Gibraltar in 2021 amid growing support from regulators.

Following approval from the GFSC, crypto exchange Huobi has reportedly been moving its spot trading operations to its Gibraltar-based affiliate following China’s cryptocurrency crackdown. According to the firm, Chinese operations made up at least 30% of its total trading volumes and revenues before the ban.

Crypto-friendly jurisdictions of 2021: Honorable mentions

El Salvador, the UAE, Canada, Singapore and Gibraltar are, of course, not the only countries that served examples of benign crypto regulation in 2021.

Among other increasingly crypto-friendly jurisdictions is Australia, which has been actively moving to adopt new crypto regulations and became a major location for crypto-related ETF listings this year.

Liechtenstein, the world’s richest nation per capita, was the country with the most comprehensive cryptocurrency tax policy for the second year in a row in 2021, as per a PwC report. Australia and Malta ranked second, followed by Germany.

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December 22, 2021 Bitcoin.com

Fidelity Canada officially launches Bitcoin ETF and Bitcoin Mutual Fund

December 2, 2021 Coin Telegraph

Bitcoin

Holding such ETFs in registered accounts can either entirely offset or reduce capital gains tax liabilities for Canadian customers.

On Thursday, Fidelity Canada officially launched the Fidelity Advantage Bitcoin exchange-traded fund (ETF) and the Fidelity Advantage Bitcoin ETF Fund (mutual fund), marking the first such assets to be made available in the country and confirming earlier reports on the matter. The funds have the tickers FBTC and FBTC.U, denominated in Canadian and United States dollars, and are listed on the Toronto Stock Exchange. Fidelity's Bitcoin ETFs seek to track the performance of Bitcoin's (BTC) spot price. Fidelity currently manages CA$208 billion ($162.27 billion) in assets in the country.

The ETFs will have an annual management fee of 0.4%. Operating expenses and trading costs are not yet available as the assets are still new. Over 98% of Bitcoin purchased by the funds is stored in cold wallets.

The implications are significant for Canadian retail investors who open government-registered accounts, such as the Tax-Free Savings Account (TFSA), and purchase Bitcoin ETFs. As the name implies, securities held in a TFSA are exempt from capital gains tax liabilities.

Since 2009, the annual contribution limit for a TFSA has ranged from CA$5,000 ($3,903) to CA$10,000 ($7,807). Unused contributions from the previous years are carried forward, making them cumulative. In addition, all realized profits accrued in the TFSA are added back into the contribution room. Hypothetically, if an investor purchases $10,000 in a Bitcoin ETF and sells them for $20,000, then further capital appreciation from reinvesting the full $20,000, not $10,000, will be eligible for capital gains tax-exemption.

Fidelity reportedly launching spot Bitcoin ETF in Canada

December 1, 2021 Coin Telegraph

Canada

Fidelity Investments has launched a Bitcoin exchange-traded fund that will allow investors to buy and sell real Bitcoins rather than derivatives.

It's been a bumpy ride for Bitcoin (BTC) investors. While waiting on the United States Securities and Exchange Commission (SEC) to make their decision about whether or not they will approve a spot Bitcoin exchange-traded fund (ETF), U.S-based investment firm Fidelity Investments is reportedly launching a spot ETF in Canada subject to regulatory approval.

According to a tweet shared by Bloomberg senior ETF analyst Erick Balchunas, the fund "Fidelity Advantage Bitcoin ETF" is currently pending listing on a Canadian exchange. Balchunas also pointed out that if the new fund succeeds, it would become the largest asset management firm that offers Bitcoin services.

SEMI-SHOCK: Fidelity launching a spot bitcoin ETF in Canada this week. Didn't know about this. Will easily be the biggest asset manager to date with a bitcoin ETF. pic.twitter.com/H2XJRBY3O6
— Eric Balchunas (@EricBalchunas) November 30, 2021

Fidelity's decision to offer a spot ETF in Canada only adds fuel to fire, as one of the world's largest asset managers with almost $4 trillion in assets is compelled to develop a service in Canada to satisfy customer demands.

Fidelity did not immediately respond to Cointelegraph's request for comment.

Meanwhile, the SEC is still deliberating whether or not to approve a spot Bitcoin ETF, which according to many market experts will be a hit in the market.

Grayscale Investments has criticized the U.S. SEC's recent refusal of VanEck's spot Bitcoin ETF application, as reported by Cointelegraph. The operator of the Grayscale Bitcoin Trust (GBTC) claims in a letter to Secretary of the SEC Vanessa Countryman that the SEC is wrong to reject spot Bitcoin ETFs since it has now permitted three such products based on Bitcoin futures.

Canada is no stranger to Bitcoin ETFs. The introduction of the FBTC might pave the way for additional spot ETFs in the Canadian market. This would be a significant victory for investors since it would allow them exposure to Bitcoin without having to go to the trouble of purchasing and storing it themselves.

Russia Gets Bulk of Chinese Mining Machines Amid Miners’ Exodus, Report Reveals

November 25, 2021 Bitcoin.com

Crypto poses no big risk to economy so far, Bank of Canada official says

November 25, 2021 Coin Telegraph

Bank of Canada

Canada is one of the first countries to approve a Bitcoin ETF and is the fourth-largest nation in terms of hash rate.

Cryptocurrencies like Bitcoin (BTC) do not pose any significant risk to the financial system at their current level of adoption, according to Bank of Canada’s Deputy Governor Paul Beaudry.

Beaudry spoke about the risks to the stability of the Canadian financial system at the Ontario Securities Commission Dialogue 2021 on Nov. 23.

When asked whether cryptocurrencies are a risk, the deputy governor responded that the Bank of Canada doesn’t think that crypto is “developing in a way that creates a systemic type of risk for a financial system” up to now. This is because cryptocurrencies are “quite removed from a financial system,” Beaudry noted.

But as the crypto market grows bigger with more people investing in it, crypto becomes more of a risk, which could mean a certain level of vulnerability, the official said:

“We’re not at the point yet of thinking this a big risk for the economy but this is something we’re keeping an eye on very closely.”

Beaudry also stressed that classic cryptocurrencies like Bitcoin do not play much of a role in payments as investors buy BTC “mainly to speculate.”

But there are also digital assets like stablecoins that are backed by assets and fiat currencies, which could potentially play a bigger role in payments, he said. “That’s something we’re also keeping an eye on,” Beaudry added.

Canada has emerged as one of the world’s most crypto-friendly countries, becoming one of the first jurisdictions in the world to approve a Bitcoin exchange-traded fund. Canada has also been a popular spot for global crypto miners, ranking the fourth largest nation in terms of hash rate according to Cambridge Bitcoin Electricity Consumption Index as of August 2021.

But despite progressive crypto development and adoption, the Bank of Canada has expressed some skepticism about crypto before. In May, Canada’s central bank said that digital assets like Bitcoin remain a highly risky asset despite adoption by institutional investors.

“Price volatility stemming from speculative demand remains an important obstacle to the wide acceptance of crypto assets as a means of payment,” the Bank of Canada wrote in its financial system review on the most important financial risks and economic vulnerabilities.

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November 21, 2021 Bitcoin.com

Fidelity clears regulatory hurdle to become Canada’s first institutional Bitcoin custodian

November 17, 2021 Coin Telegraph

Adoption

The service would only be available to institutional investors for now, but Fidelity is also launching Bitcoin ETFs to cater to retail interest.

As reported by The Globe and Mail, Fidelity Clearing Canada received approval from the Investment Industry Regulatory Organization of Canada on Wednesday to launch a Bitcoin (BTC) trading and custody platform. It is designed for use by institutional investors — such as pension funds, portfolio managers and mutual funds — and would be a first-of-a-kind service in the country.

The firm also plans to cater to retail investors with its regulatory filing for a Bitcoin exchange-traded funded and mutual fund, which was submitted earlier this week. As of September, Fidelity has over $4.2 trillion in assets under management around the world. In addition, exchange-traded cryptocurrency products are rapidly gaining traction, with more than 40 such instruments awaiting approval in the United States alone.

In an interview with The Globe and Mail, Scott Mackenzie, president of Fidelity Clearing Canada, said the following:

“The demand for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset class.”

Canada’s road to cryptocurrency adoption has not been as smooth as anticipated. Two years prior, QuadrigaCX, the country’s largest cryptocurrency exchange at the time, collapsed after the sudden and mysterious death of its co-founder, Gerald Cotten, resulting in the loss of access to stored funds in cold wallets. Cotten alone allegedly had access to the wallet keys that would unlock the roughly $143 million worth of deposits belonging to over 115,000 former QuadrigaCX customers. There is currently a Netflix documentary in the making about the life and death of Cotten.