Welcome to another edition of Crypto NFT Today! This past week has been full of must-know events that will surely be defining points for the future of blockchain, cryptocurrency, and NFTs.
With transformative tax reporting regulations released by the Biden administration, terminated partnerships between Mastercard and Binance, reports of unstable NFT markets, and more, the last and final week of August has lots of news you should be aware of. So, let’s dive in and see what’s happening.
New Tax Reporting Regulations for Cryptocurrency Users
On Aug. 25, the Biden administration released Form 1099-DA, a new tax reporting form that will assist crypto users in determining their final settlement. In addition to helping cryptocurrency users calculate their gains, Form 1099-DA also makes digital asset brokers follow the same information reporting rules as those expected by brokers with bonds and stocks.
The U.S. Department of the Treasury press release explains why these regulations are necessary: “This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules.”
According to the press release, Form 1099-DA will be issued to digital asset brokers in January 2026. In the meantime, the IRS is accepting all public feedback on this new tax reporting regulation through Oct. 30.
Mastercard and Binance End Partnership in Latin America & the Middle East
The global credit card company Mastercard will end its partnership with crypto exchange Binance on Sept. 22. The announcement, made on Aug. 24 by a Mastercard spokesperson, explained that the decision to end ties will be in four major areas: Brazil, Argentina, Bahrain, and Columbia.
Mastercard hasn’t released any information on the ended partnership with Binance. On Aug. 23, the Binance Customer Support profile announced the news itself and stated that users have until Sept. 21 before the cards are no longer usable.
Reports Show NFTs Are Experiencing an Unstable Market
According to Nansen.ai Data, floor prices have been declining by more than 25% in the last month for blue-chip NFTs. The floor prices of NFTs, which refer to the lowest price a seller wants for an item, are said to be a great measure of a specific collection’s value and popularity.
The drop in blue-chip NFTs is noteworthy since they’re collectibles expected to have a continuous, long-term value. These characteristics of blue-chip NFTs, similar to cryptocurrency, are because of many factors, like their historical trading activity, collector demand, cultural significance, strong fundamentals, and rarity.
Billionaire Mukesh Ambani Announces New Dive Into Bitcoin
On Aug. 28, Indian billionaire Mukesh Ambani announced that Reliance Industries Ltd. will dive into India’s CDDC development and blockchain. As the company’s Chairman, Ambani explained the opportunities these new endeavors would bring during Reliance Industries Ltd.’s annual general meeting.
“JFS will consolidate its payment infrastructure, with a ubiquitous offering for both consumers and merchants further driving digital adoption for India,” Ambani said. “JFS products will not just compete with current industry benchmarks but also explore pathbreaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, and regulatory norms and ensure protection of customer transaction data at all times.”
Cryptocurrency Is Predicted to Be a Key Presidential Election Issue
With the first Republican presidential debate on Aug. 23, election discussion is vamping up, and there are predictions that cryptocurrency will be a key debate for the presidential election moving forward.
Republican Ron DeSantis, a leading candidate for the upcoming presidential election, has been vocal on his stance on cryptocurrency in the past. For example, DeSantis stated: “Biden’s war on bitcoin and cryptocurrency will come to an end when I become president.”
Additionally, Vivek Ramaswamy shared his stance with pro-cryptocurrency talks while attending the Bitcoin Conference 2023 event in May.