Daily Edition · Page 6

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

UK CONFIRMS NEW CRYPTO REPORTING RULES

The UK's 2025 Budget confirms Cryptoasset Reporting Framework implementation from January 1, requiring UK-registered exchanges to collect customer cryptocurrency transactions and tax reference numbers, with HMRC forecasting £315 million ($417.3 million) in additional tax revenue by April 2030. Investors failing to provide details face £300 fines, while exchanges risk £300 per unreported customer, and information collected in 2026 will be reported to HMRC in 2027 to verify capital gains tax compliance. Experts warn compliance costs will be passed to customers as exchanges struggle to collect tax details from wary users, potentially driving some traders toward noncompliant platforms until international alignment creates a crypto equivalent to Common Reporting Standard and FATCA. Separately, HMRC published a summary indicating the government leans toward recognizing DeFi lending and staking as taxable only when gains are realized through fiat conversion, though no final decision or timeline has been set.

VISA EXPANDING STABLECOIN SETTLEMENT ACROSS EMEA

Visa partnered with crypto infrastructure provider Aquanow to expand stablecoin settlement across Central and Eastern Europe, the Middle East, and Africa, enabling 365-day settlement for issuers and acquirers using approved stablecoins like USDC. The integration eliminates weekend and holiday delays from traditional banking rails as Visa's stablecoin settlement volume reached a $2.5 billion annualized run rate, with plans to add four stablecoins across four blockchains.

NON-CUSTODIAL USDT VISA CARD LAUNCHING IN EL SALVADOR

Truther will launch a non-custodial USDT Visa card in El Salvador on January 29, enabling real-time spending from self-custody wallets on Polygon without preloading funds, charging 2% currency conversion fees with no IOF tax for Brazilian users as it extends its $40 million daily PIX-connected infrastructure. The card draws funds at the point of purchase rather than requiring top-ups or custodial accounts. Truther plans to migrate to the Liquid network for enhanced privacy while expanding the Swapix API to Argentina, Mexico, Colombia, and Russia, targeting 24/7 QR code-based payment systems. Its wallet currently supports BTC, USDT, and Brazilian real stablecoins. Early 2025 integrations have been planned for tether gold and Argentine peso tokens.

TETHER'S INTEREST RATE TRADE

Tether is running an interest rate trade – buying gold and Bitcoin, anticipating Fed cuts that would crush their interest income. A 30% decline in these positions would wipe out equity and render USDT insolvent. However, its disclosed reserves operate under a "matching philosophy", showing only liability backing. A separate undisclosed equity balance sheet holds mining operations, equity investments, and corporate reserves funded by $10 billion annual profits from $120 billion treasuries at 4% yields. Tether's equity, valued at $50-100 billion, provides a buffer sellable to cover balance sheet gaps. The company operates at significantly higher collateralization than banks' 5-15% fractional reserves, despite lacking lender-of-last-resort protection.

THE STATE OF ETHEREUM: DIGITAL OIL, L2S, TPS, ETFS, DATS

Ethereum still dominates DeFi TVL and is rapidly integrating with TradFi via spot ETFs and ETH treasury companies, but ETH has underperformed BTC as investors debate how much value accrues to the base layer vs L2s. The upcoming Fusaka upgrade aims to massively increase throughput and data availability while making it cheaper to run nodes, reinforcing Ethereum's role as the modular settlement and Data availability (DA) layer for L2s and tokenized assets.

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