Crypto Guides, Knowledge & Insights

Indian Parliament Member Asks Government to Tax Crypto Income More Than 30%

Indian Parliament Member Wants to Tax Crypto Income More Than 30%　　India‘s Finance Bill 2022 containing the proposed 30% tax on crypto income is now being considered in Rajya Sabha, the upper house of India’s parliament.　　Parliament member Sushil Kumar Modi reportedly asked the government Monday to increase the tax on cryptocurrency income from the current rate of 30%. He said:　　I would like to request the finance minister that the 30% tax that you have imposed on crypto, please consider in the coming days if this tax can be further increased.　　Parliament member Modi argued that cryptocurrency is not a commodity, an asset, goods, or a service, emphasizing that it does not have intrinsic value.　　He added that while stocks are backed by companies behind them, “crypto is gambling.” He further questioned, “Who are behind crypto？”　　The parliament member further pointed out that the 18% goods and services tax (GST) is only levied on crypto service providers, such as exchanges, emphasizing that this needs to be increased. Modi opined:　　Cryptos are similar to lottery, casinos betting, gambling and horse racing. In all these activities, 28% tax (GST) is imposed on the total transaction value … So I request to you that the GST council needs to

2022-03-29Deep Dive

FOMO: The major reason why Cryptocurrency traders lose money in Nigeria

By: Damian Okonkwo　　What is FOMO？　　FOMO is an acronym for Fear of Missing Out.　　It is a sudden emotional impulse that often pushes people to jump into buying a particular cryptocurrency often when the price begins to rise rapidly in the hope that the rise would rise very high over a long period of time.　　FOMO is a very common mistake among new crypto traders who fail to understand the traditional movement of a particular cryptocurrency.　　Many have defined FOMO as a psychological thing. Here FOMO is seen as the inability to control ones mind, emotions, feelings, and instincts leading to jumping into a crypto project without any research or having a good reason to do so.　　Causes of FOMO　　There are a number of reasons why people jumped into buying a given cryptocurrency without proper thought and due research. The major reasons could be seen below:　　« Drive for quick profits: Many people today have joined crypto trading with the desire to make quick profits. They see crypto each crypto project on the rising asset to rise indefinitely to a new ATH. This is really a very wrong perception and crypto trading and greatly to be discouraged.　　« Believe that the market will rise endlessly: During a

2022-03-29Deep Dive

Many Cryptocurrency Players Need To Grow Up

The other week brought a curious outburst from part of the online cryptocurrency industry—those who spend expansive time promoting their holdings as the only choice in an uncertain world and challenging people who have any other view, even when, as with some Ive seen, the doubtful hold extensive expertise in areas of finance.　　Here‘s how Reuters put it: “LBRY Inc, a blockchain publishing company accused by the U.S. Securities and Exchange Commission of selling unregistered securities, tweeted on Wednesday that it is ’done being nice‘ and that it would engage in ’psychological warfare as it fights the lawsuit.”　　Thats may be a bit too harsh of a recounting. The people at LBRY do seem convinced that the SEC has been unfair and unreasonably punitive.　　And the “psychological warfare” was supposedly a joke about meeting the SEC sweaty and after eating garlic, although if youre asking your lawyers if you could do it and they said no, was it as much of a joke？　　In any case, trying to build a PR campaign to the cheers of those who follow you is a poor way to approach regulators. As journalist and CPA Francine McKenna put it, “Swagger is not a strategy.” As she notes, it

2022-03-29Deep Dive

Bitcoin flirting with $48,000 as hodlers kept buying throughout Q1

Long-term hodler have kept accumulating Bitcoin during the whole of the first quarter of 2022, and they are a big reason behind the bull run of the past week. According to data from IntoTheBlock, as bitcoin surpasses $48,000 again, the balance held by hodlers, addresses holding bitcoin for more than a year, is currently at an all-time high.　　These hodlers increased their positions by 17% since late November. These addresses remained unfazed and accumulated throughout Q1 of 2022. The path ahead for bitcoin looks bright, and the premiere cryptocurrency by market cap could reach $50,000 if it breaks the current resistance level.Passing resistance could lead bitcoin towards $50,000　　Using the IOMAP metric (In/Out of the Money Around Price) IntoTheBlock identifies key price levels of buying and selling activity in the short term. The key level of bitcoin resistance is around $48,479, where 2.38 million addresses are holding 1.16 million BTC. Passing that level could lead bitcoin to $50,000.　　In/Out of the Money Around Price (IOMAP). Image by IntoTheBlock.　　According to on-chain data analytics by Santiment, bitcoins current market price is the highest price since the first days of January when a market price of $48,033 was set on the 1st of January. At the

2022-03-29Deep Dive

Indian Government Reveals 11 Crypto Exchanges Investigated for Tax Evasion, $13 Million Recovered

11 Crypto Exchanges Investigated for Tax Evasion　　The Indian government answered some questions regarding the taxation of cryptocurrency exchanges Monday in Lok Sabha, the lower house of parliament.　　Parliament member S. Ramalingam asked the finance minister “whether it is true that some cryptocurrency exchanges were involved in evasion of goods and services tax (GST) and it was also detected that other cryptocurrency exchanges and major investors in digital currencies are under investigation by the government.”　　In addition, the parliament member asked the finance minister about “the action taken or proposed to be taken by the government against those cryptocurrency exchanges that were detected in GST evasion.”　　The minister of state in the ministry of finance, Pankaj Chaudhary, replied:　　Few cases of evasion of goods and services tax (GST) by cryptocurrency exchanges have been detected by Central GST formations.　　He revealed that 11 cryptocurrency exchanges were investigated and tax evasion in the amount of 81.54 crore rupees were detected. The tax authority has recovered 95.86 crore rupees, including interest and penalty.　　The minister of state provided a list of the 11 exchanges investigated: Coindcx, Buyucoin, Coinswitch Kuber, Unocoin, Flitpay, Zeb IT Services (Zebpay), Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India, Wazirx, and Discidium Internet Labs. The exchanges

2022-03-29Deep Dive

Japan Prepares FEFTA Amendment to Prevent Russia From Using Crypto Loopholes

In a bid to strengthen financial sanctions imposed on Russia by Western countries, Japan is amending its foreign exchange law to remove the loopholes that can be used by sanctioned Russians for crypto transactions.　　Removing Crypto Loopholes to Target Russia　　After returning from the G-7 summit in Belgium, Japanese Prime Minister Fumio Kishida called for the amendment to the foreign exchange law in parliament on Monday. He stressed the need for coordinated efforts to make the sanctions work.　　The amendment to the Foreign Exchange and Foreign Trade Act (FEFTA) has been planned to ensure Russia doesnt bypass the international financial sanctions by using digital assets. The government will bring the new FEFTA proposition in the current session of parliament, Chief Cabinet Secretary Hirokazu Matsuno said in a press conference.　　Although the details of the amendment are still being worked out, its believed that it will allow the government to ask digital agencies and banks for stricter scrutiny to ensure sanctioned Russian targets are not able to carry out financial transactions through digital assets.　　The Japanese authorities have, so far, frozen the assets of over 100 individuals and institutions in line with the financial sanctions against Russia by the US and the EU nations.　　Meanwhile, a firm

2022-03-29Deep Dive

OECD Proposes Crypto-Assets Reporting Framework

The Organization for Economic Cooperation and Development (OECD) has proposed a framework for the reporting of cryptocurrency assets in an effort to streamline global tax compliance.　　The Crypto-Assets Reporting Framework (CARF) will bolster the Organization for Economic Co-operation and Development‘s existing Common Reporting Standards (CRS). Established in 2014 to combat offshore tax evasion, CRS requires financial institutions to identify non-resident account holders and report specific financial information to the local tax authority. This local authority is then required to correspond this information to the tax regulator of the account holder’s residential country. CARF is specifically designed to address crypto assets in the context of this local tax reporting.　　According to the OECD, cryptocurrencies pose a pair of challenges when it comes to global tax administration. Because most cryptocurrencies operate on a decentralized network, transactions do not pass through a centralized financial authority required to follow CRS. Consequently, new financial intermediaries have sprung up, such as cryptocurrency exchanges, which are still only subject to limited OECD reporting.　　Under CARF, new reporting requirements will be expected for a wide variety of crypto assets, which are defined as, “those assets that can be held and transferred in a decentralized manner, without the intervention of traditional financial

2022-03-29Deep Dive

The tables are turning in Russia as energy minister calls for the legalization of crypto mining

Russias Deputy Minister of Energy said that cryptocurrency mining in the country should be fully legalized as soon as possible.　　This Saturday, the minister addressed the legal vacuum cryptocurrency mining exists in, saying that the fact that the industry is regulated federally, instead of locally, significantly hinders its development.More officials in Russia want more to do with crypto　　The regulatory uncertainty surrounding cryptocurrency mining in Russia could soon be addressed if the countys Deputy Minister of Energy gets through to the federal government.　　In an address on Saturday, Evgeny Grabchak said that the mining industry currently exists in a “legal vacuum” that needs to be eliminated as soon as possible. The current state of affairs, in which mining is neither legal nor illegal and falls under the jurisdiction of the federal government, is detrimental to further growth of the industry, he said.　　“The legal vacuum makes it difficult to regulate this area and set clear rules of the game,” he said. “If we want somehow to get along with this activity and we have no other options in the current reality, we must introduce legal regulation, adding the concept of mining to the regulatory framework.”　　According to a report from Russian state news agency Tass,

2022-03-28Deep Dive

Buy pressure ‘in bull market territory’ — 5 things to know in Bitcoin this week

Bitcoin (BTC) begins the last week of March with a bang after returning to its yearly opening price above $46,000.　　In a surprisingly strong upward move for a weekend, BTC/USD began surging upwards Saturday, continuing overnight to challenge its highs from the start of 2022.　　Coming against an ongoing macro climate of considerable uncertainty, strength in Bitcoin is naturally being taken with a pinch of salt this month. The reaction is understandable given that previous attempts to break out of its multi-month trading range have all ended in failure.　　Despite volatile periods, bulls were always left disappointed and Bitcoin subsequently not only reversed but often revisited the lower end of its range, costing both short and long positions dearly.　　Nonetheless, the hope is that this time really will be different — analysts had long argued that only a breakout above the range ceiling, formed by the yearly open around $46,200, would be enough to cause a paradigm shift.　　Now that this is in action on the charts, attention is focusing on the final hurdle — cementing these multi-month resistance levels as support.　　With the process ongoing Monday, Cointelegraph takes a look at potential triggers that could make or break this important episode in Bitcoin price action.Bitcoin

2022-03-28Deep Dive

WHAT IS GOOGLE’S BLOCKCHAIN CALLED?

What we know about Google in general is clear and yet always obscure. The latest project the tech giant forwards is a sure focus on blockchain. It‘s not farfetched to think that Google researchers have long developed crypto models of their own to use. However, what’s developing on the horizon now takes the web to its next level. The implications of decentralized internet arent only possible at Google. Decentralization is also what powers the new metaverse.Will Web 3.0 Actually Work？　　In theory, web 3.0 is already live and active. Since the internet first allowed hosts to share data, it was only a matter of time before common readers could as well. The age of blogs and social media entered in the promises of web 2.0 to modern society. What blockchain now achieves is imperative if society is to reach its next 3.0 milestone. The social, professional and intellectual virtues of mankind enter a digital transformation that calls for reliability with mobile internet.How Does This All Connect？　　Blockchains can be integrated through the endless networks that developers across the globe host. Googles hope is to be “the” bridge surfers use to enter or exit meta content. Crypto, social media, mining, earning and content

2022-03-28Deep Dive

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