Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
According to blockchain analytics firm Chainalysis, the crash of the now infamous crypto exchange FTX is not the worst the cryptocurrency industry has faced. Comparing FTX to the fall of Mt. Gox, the firm believes that FTX’s impact will be smaller than that of Mt. Gox, which was the only mainstream cryptocurrency exchange at the time.
In a Twitter thread, Chainalysis’s research head Eric Jardine explained that the market share, trading volume, and overall influence on the market of Mt. Gox had much more effect on the industry than FTX. According to his research, Mt. Gox averaged 46% of exchange inflows in the year below it crashed in 2014. On the other hand, FTX averaged only around 13% of market inflows.
1/ Big picture: FTX’s collapse has shaken the #crypto market. But this is not the first time crypto has faced significant turmoil related to the collapse of an exchange.
— Chainalysis (@chainalysis) November 23, 2022
The impact of FTX on the market is reduced further still with the fact that the market now has decentralised exchanges in the industry. These exchanges represent almost half of the inflows in the market. In his thread, Jardine continues to note that FTX was gaining more volume in the market at the time of the crash. Mt. Gox, meanwhile fell while other players were entering the market”
“Mt. Gox was becoming one exchange among many during a period of growth for the category, taking a smaller share of a bigger pie. FTX on the other hand was taking a bigger share of a shrinking pie, beating out other exchanges even as its raw tx volume declined.”
As per Jardine’s estimation, the FTX crash will likely not have as big an impact on the market and if it should, it will recover. Looking at data following the 2014 crash of Mt. Gox, Jardine noted that the transaction volume in the industry sat for some time, but activity increased.