Crypto Guides, Knowledge & Insights

India Targets 700 Crypto Investors for Non-Payment of Taxes

India‘s income tax department has reportedly identified about 700 cryptocurrency investors who have failed to pay taxes on high-value crypto transactions. “We have a long list of people who were transacting in crypto assets but were not paying tax,” said an official with the country’s Central Board of Direct Taxation.　　Indian Tax Authority Going After 700 Crypto Investors　　Indias income tax department is reportedly cracking down on non-payment of taxes from cryptocurrency gains. The department is examining the high-value crypto transactions of about 700 investors, the Economic Times reported Tuesday, adding that the authority is proposing to issue notices to them.　　Income tax officials said most of these people have either omitted declaring crypto gains on their tax returns or have not filed tax returns at all. They could face 30% tax, penalty, and interest.　　A senior official with the Indian Central Board of Direct Taxation (CBDT) told the publication:　　We have a long list of people who were transacting in crypto assets but were not paying tax. Initially, (we) have shortlisted about 700 transactions, where tax liability is very high.　　The list includes high net worth individuals, non-resident Indians, startups, students, and housewives. Some of them have never filed tax returns.　　According to tax officials, some

2022-03-16Deep Dive

Investors Inject $450 Million Into Consensys, Ethereum Incubator Now Valued at $7 Billion

Consensys Raises $450 Million, Proceeds From the Round Will Be Converted to Ether　　The Ethereum software and incubator firm Consensys has revealed it closed a $450 million Series D led by the venture capital firm Parafi Capital. The financing round also saw participation from Third Point, Marshall Wace, True Capital Management, Temasek, Softbank Vision Fund 2, Microsoft, Anthos Capital, Sound Ventures, UTA VC and C Ventures. Interestingly, the company says that the $450 million will be converted to ethereum (ETH) right away.　　“All proceeds from the round will be converted to ETH to further build Consensys‘ ’ultra-sound money‘ position as a rebalance to its ETH to fiat ratio in line with Consensys’ treasury strategy,” the firms announcement on Tuesday disclosed. Consensys adds that the company has kept ether on its balance sheet for quite some time alongside stablecoins and other tokens. The assets are put to work, Consensys details, via staking and “actively using its own financial infrastructure.”Metamask Captures 30 Million Monthly Active Users, Infura Commands Over 430,000 Developers　　The Consensys announcement concerning the $450 million funding round comes at the same time the company‘s Metamask wallet hit 30 million monthly active users (MAUs). The disclosure highlights that the “United States, the Philippines,

2022-03-16Deep Dive

Kazakhstan Shuts 106 Crypto Mining Farms; Seizes $193M Worth Equipment

Key Takeaways　　Dozens of crypto mining facilities in Kazakhstan have shut down, according to the countrys Financial Monitoring Agency.　　So far, 55 mining facilities have voluntarily ceased operations, while 51 illegal mining facilities have been forcibly shut down.　　The shutdowns are related to Kazakhstans energy shortage, which led the country to impose restrictions on mining in late January.　　Crypto mining businesses in Kazakhstan are being shut down en masse, according to a statement from the countrys authorities.　　Dozens of Kazakhstans Facilities Shut Down　　Kazakhstans Financial Monitoring Agency (FMA) reported on Mar. 15 that dozens of crypto mining operations have been shut down within its borders—some voluntarily, others less so.　　So far, 55 mining facilities have voluntarily ceased operations following inspections by the government. Those facilities also dismantled and discarded their equipment. Government agencies will prevent that equipment from entering circulation.　　The FMA also reported that 51 illegal mining facilities were forcibly shut down. Those illegal operations either did not report their activity to the government, used illegal energy connections, operated in improper special economic zones, or evaded taxes and customs. These facilities were disconnected from power sources.　　The authority has filed 25 criminal cases and seized 67,000 pieces of equipment valued at 100 billion tenge ($194 million).　　The affected mining

2022-03-16Deep Dive

How Are Bitcoin and Ethereum Different?

Differences Between Bitcoin and Ethereum 　　Bitcoin and Ethereum are the two most well-known blockchain protocols, and their respective cryptocurrencies, BTC and ETH, are integral to the fast-expanding world of digital assets. While competition remains among their respective communities, Bitcoin and Ethereum fulfill different roles within the blockchain ecosystem. Launched in 2009, Bitcoin is the original blockchain protocol, and was designed to serve as a peer-to-peer digital cash system that allows transactions to be initiated, processed, and verified without the need for third-party middlemen. Bitcoin, however, is not well-suited to hosting applications.　　Launched in 2014, Ethereum was created in order to connect people globally to a system of smart, self-executing contracts. Smart contracts facilitate the creation of decentralized applications (dApps), which range in function and all operate atop the Ethereum network using shared standards for interoperability. While both Bitcoin and Ethereum currently utilize a Proof-of-Work (PoW) consensus algorithm, Ethereum introduces the concept of smart contracts, which are automatically self-executing agreements used in creating dApps.Cryptocurrency Use Cases　　Bitcoin and Ethereum have native cryptocurrencies that serve different purposes. Bitcoin (BTC) is an alternative to fiat money, acting as a medium of exchange for payments and a store of value for saving or speculation. On the

2022-03-15Deep Dive

How crypto is driving diversity and gender equality

Created as an alternative to traditional finance and decentralized by nature, blockchain-based fintech is ushering in a new era of inclusivity. Yet, the worlds of finance and technology that crypto bridges are notoriously male-dominated, and despite its nascency, crypto has been affected by this legacy. Powered by the economics associated with the rise of Web 3.0, tokenization and non-fungible tokens (NFTs), blockchain‘s innate values of inclusivity may not only be a driver of diversity but prove to be one of society’s great equalizers. A foundation in empowerment　　Drawing on lessons from the 2008 Great Recession, chief of which was the preponderance of banks in the overall financial ecosystem, crypto was designed to empower individuals and give them access to more economic opportunities. 　　Fast forward to today, innovations in crypto have created even more opportunities to earn. Particularly in the past year, we have seen the emergence of play-to-earn games — blockchain-based video games that harness cryptocurrencies to reward players.　　Against the backdrop of massive jobs losses precipitated by the global pandemic, which women and youth bore the brunt of in Southeast Asia, play-to-earn games have proven to be effective in safeguarding the livelihoods of low-wage workers. In the case of Axie Infinity,

2022-03-15Deep Dive

Crypto Will Redefine the Financial World: PayPal’s CEO

The Chief Executive Officer of PayPal – Dan Schulman – reiterated his positive stance on the cryptocurrency industry. In his view, the “intersection” between digital assets, CBDCs, stablecoins, and digital wallets will “redefine a lot of the financial world going forward.”　　High Hopes on Crypto　　PayPals top executive has been an advocate of the cryptocurrency industry for a while and even admitted in 2019 that he owned bitcoin.　　In his most recent speech at Axis Tel Aviv, Schulman doubled down on his stance, forecasting that the combination of digital assets, central bank digital currencies, stable coins, and digital wallets could reshape the monetary sector:　　“The intersection between CBDC, stable coins, digital wallets, and enhanced utility of payments through cryptocurrencies is not just fascinating, but I think will redefine a lot of the financial world going forward.”　　One of the most intriguing topics in the crypto space is bitcoins USD value and the predictions of its movements in the months and years to come. However, Schulman finds this irrelevant. To him, what matters is the merits of the digital asset industry and its ability to affect the finance world positively:　　“I‘m very excited about what crypto and digital ledger technology can do to the financial system going

2022-03-15Deep Dive

Austin, Texas To Support Blockchain And Web 3.0 Technologies

According to an official government document, the Mayor of Austin has directed the City Manager to help create an enabling government and community environment that supports the creation of new technologies like Blockchain and Web 3.0.　　By making this move, the City of Austins government wants to put itself on the world digital finance map, like New York City and Miami; who have become actively involved in the Crypto industry over the past few months. As a result of this, the Mayor has ordered the City manager to conduct a “fact-finding study” on how the city can adopt Bitcoin.　　The citys involvement hopes to bring about equity, diversity, accessibility, and inclusion in this technology ecosystem; for the benefit of Austinites. Also, the city is putting no limits on how involved it can be in blockchain and web 3.0 related technologies, protocols, and applications.　　Furthermore, the city compliments blockchain as a technology that allows secure storage and sharing of information on a digital ledger. Blockchain technology being the foundation of Web 3.0s development is under development around the world; as people are beginning to look for more ways for its utilization. The Austin government also cites many potential uses of blockchain for private and

2022-03-15Deep Dive

Sudan Rejects Russian Illicit Gold Smuggling Allegations

The Rise in Russia‘s Gold Holdings　　The Sudanese Ambassador to Russia Onor Ahmed Onor recently dismissed claims entities from the latter country have smuggled “hundreds of tonnes of illicit gold” from his country’s territory for years. In pushing back against the allegations, Onor called the report published by the British Telegraph newspaper “fake news” and added the story had been “created from the imagination” of the storys writer.　　In its report, the Telegraph newspaper said Russia, which is the world‘s third-largest producer of gold, had overseen the more than 300% growth in the amount of gold held at the country’s central bank since 2010. The report alleges that most of the gold was sourced from Africa with Sudan being at the center of the smuggling. The gold holdings, according to the report, would be used to shield the Russian currency from the effects of Western sanctions against Moscow.　　The report cites an unnamed executive of one of Sudans largest gold companies who alleges that the precious metal is smuggled via “small planes from military airports dotted across the country to Russia.”40 Gold Buyers Arrested　　Meanwhile, Onor‘s rejection of the smuggling claims followed reports that Sudan’s military government is in fact planning to use the

2022-03-15Deep Dive

Bitfarms Buys Land to Open New Mining Facility in Canada

Bitfarms to Replace Bitcoin Mining Facility in Canada　　Bitfarms, a company dedicated to mining Bitcoin, has announced the acquisition of new land and a building located in Canada to establish a new bitcoin mining facility. The facility, which has been called “Garlock,” will serve as a replacement for phasing out the de la Pointe facility, and it will supply 18 MW of power for conducting mining operations.　　On the construction of this new facility, Geoff Morphy, president and COO of Bitfarms, stated:　　When completed, the total planned capacity of our three Sherbrooke farms, which also include Leger and The Bunker, will fully utilize Hydro-Sherbrookes contracted power of 96 MW.　　The new facility will be located in a remote area, and will be equipped with “the latest in sound reduction and monitoring technology.” This is a key element for the Bitfarms relocation, as the company has been criticized by those living adjacent to the de la Pointe mining facility, even after taking measures to dampen the sound coming from its operation.　　The total price of the investment Bitfarms is putting into this new facility is around C$2.25 million ($1,760,000) and 25,000 common share purchase warrants, that will allow holders to purchase Bitfarms shares at a certain

2022-03-15Deep Dive

More Than 80% of the Funds Locked in Decentralized Finance Are Kept on 5 Chains, 21 Different Defi P

5 Blockchain Networks, 21 Defi Protocols　　Today, there‘s just under $200 billion in defi and that’s just the total value locked (TVL), as it doesnt include the large quantity of tokens tied to these specific protocols. Right now, five different blockchain TVLs represent 82% of the $198 billion locked in defi protocols. The chains include Ethereum, Terra, Binance Smart Chain, Avalanche, and Solana.Ethereum　　Ethereum currently holds the largest TVL with $108.51 billion or 54.59% of the value locked in defi protocols. On March 14, the top decentralized exchange (dex) platform tied to Ethereum is Curve Finance, with its $17.72 billion in TVL. Ethereums top collateralized debt position (CDP) application is Makerdao, which is just under Curve as the second-largest TVL in defi today.　　In terms of liquid staking, Lido is the top defi protocol and Convex Finance is Ethereum‘s top protocol for yield. Lastly, Ethereum’s largest lending protocol is the defi application Aave, with its $11.35 billion TVL.Terra　　The second-largest chain in terms of TVL in defi is Terra, with $25.79 billion or 12.98% of the aggregate TVL. Terra‘s most popular dex is Astroport, and Lido is the largest in terms of liquid staking. In terms of yield, Pylon Protocol is Terra’s most popular

2022-03-15Deep Dive

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