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Ethereum’s decentralized community of developers and innovators has done it yet again: The Shapella upgrade is complete — a significant milestone for the network that is the linchpin of Web3 tools. Why is Shapella significant? A deep dive: First, some context: Ethereum is the second-largest crypto asset by market cap. It is the first smart contract blockchain, developed by Vitalik Buterin and others in 2015. Now, about Shapella. The upgrade was actually done in two steps: SHAnghai & CapELLA. Together, they mark the final piece to Ethereum’s switch to Proof-of-Stake achieved last year. The upgrade enables the withdrawal of staked ETH and the rewards that were until now locked in. This is significant for a) ETH as an asset & b) Ethereum as the Web3 pillar.

Bitcoin (BTC), the largest cryptocurrency by market value, has crossed the $69,000 mark, hitting a three-month high during early trading on Monday. This increase comes as the U.S. presidential election approaches in two weeks, with polls showing a growing chance of former President Donald Trump winning the election on November 5. His previous support for cryptocurrencies is boosting confidence among crypto investors. At 11:45 AM IST, Bitcoin was trading 1.2% higher at $69,045, while Ethereum (ETH) rose 3.4% to $2,732. Earlier, Bitcoin briefly reached $69,450.

Bitcoin and crypto assets have been around for more than a decade, but there have been increasing efforts recently in terms of regulation and legalization. This is because the spectacular pace of adoption and the rise in market capitalisation of Bitcoin and crypto assets have resulted in them moving from a niche product used by cypherpunks to having a more mainstream presence as instruments for savings and investments. It can often be quite challenging to apply existing regulatory frameworks to crypto assets or developing new ones. For a start, the crypto ecosystem is evolving rapidly and monitoring it can get quite tricky in a global environment with a large number of players Let’s look at some of the legal and regulatory issues that need to be considered: 1. Legal characterization of crypto & taxation Legal characterization of Bitcoin and crypto assets plays a key role in determining how they are likely to be taxed. The main distinction is whether these assets should be defined as a commodity (in which case capital gains rules apply), a currency or given a whole new different category.

Bitcoin consolidated at $30,000 throughout the past week. It currently remains near the strong resistance level of $31,000, with neither bulls or bears taking control in the larger time frame. To gain momentum, buyers must restore the rate to the $31,200 zone, potentially leading to a breakout above the $31,458 resistance level. This indicates that the bulls are not rushing to secure profits, as they expect further upward movement. Bulls have shown increased interest in Bitcoin recently, driven by the positive investor sentiment, which has been fueled by notable financial institutions such as BlockRock, Fidelity, Invesco, and WisdomTree filing for Bitcoin ETFs. However, the US Securities and Exchange Commission (SEC) said these filings were inadequate last Friday, citing a lack of clarity and the need for additional information before reconsidering approval. Despite this news, BTC has maintained a positive stance well above the $30,000 level. BTC's support level currently stands at $29,500. This week will feature significant economic events in the US, including the release of the FOMC minutes for June on Wednesday, the job openings report on Thursday, and new employment numbers on Friday, which may introduce some market volatility. Meanwhile, Ethereum is trading in close proximity to the $2,000 level. Its price has gained momentum above $1,920, with immediate resistance found near $1,960 and then $2,000. Failing to surpass these resistance levels could initiate a downward correction. The current support level for Ethereum rests at $1,930.

Bitcoin Pizza Day is a poignant reminder that cryptocurrencies possess real-world value beyond their speculative nature. It showcased that Bitcoin could be used as a medium of exchange, challenging the notion that traditional fiat currencies were the only means of conducting transactions.

With this, the total value of cryptocurrencies was more than the GDP of nations like the United Kingdom, France, India and Italy. However, it lagged countries like the United States, China, Japan and Germany. This is an important milestone for the crypto industry and re-emphasizes investors’ trust in the potential of blockchain technology to disrupt the way digital natives interact with the internet, said Sharan Nair, Chief Business Officer, CoinSwitch Kuber.