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Lack of Clarity Clouds India Crypto Tax

Forkast News

Welcome to The Daily Forkast, February 8th, 2022, presented by Angie Lau. For the latest in blockchain & crypto news. On today's show: 00:00 Coming Up 00:52 Japanese megabank to take advantage of stablecoin law. 01:42 Korea’s Bithumb gets in on Winter Olympics action. 02:36 Lack of clarity clouds India crypto tax. 04:47 Does the tension in Russia and Ukraine affect crypto? DeFi breakdown --- First up, Japan's largest bank plans to issue a stablecoin tied to the Japanese yen, according to Nikkei Asia. Mitsubishi UFJ is planning to launch the yen pegged stablecoin next year, allowing instant settlement of securities transactions. Now, the mega bank is aiming to cut costs and create efficiencies, especially if you compare it to similar fiat transactions, which currently take a couple of days to process. Well, it's also planning to incorporate blockchain technology into securities trading, opening doors for retail investors with less liquidity into assets like corporate bonds and real estate. The move follows Japan's Financial Services Agency announcing that authorized banks and wire transfer companies will be allowed to issue stablecoins from spring 2023. In Korea, crypto exchange Bithumb is going for gold in the Beijing Winter Olympics. The exchange promises to make an NFT drop every time the South Korean team wins a medal. Now, Bithumb is partnering with blockchain based sports content platform 300Fit on this Team Korea event. Every medal means any South Korean fan has a chance at 10 regular and one special NFT in the 24 hours following any medal successes. Bithumb looking into capitalizing on the national excitement and bring the virtual asset in sports industries together. But it's kind of hard to get a little too excited just yet. South Korea's medal tally is currently sitting at zero. In India, excitement over the new crypto law getting muddied by a lack of clarity. Exchanges had initially welcomed the 30% tax on income from crypto transfers announced in last week's budget. However, while it was seen as a sign of legitimizing the industry, questions are now emerging over how the laws will actually work. When the tax announced last Monday by Finance Minister Nirmala Sitharaman, while fears of a ban on crypto, the law has since raised more questions than it has answered. The 1% tax to be deducted by the buyer for transactions of over 10,000 rupees or 50,000 rupees for specific individuals is a particular concern for many, with 10,000 rupees worth around US$130. It's an issue as buyers do not have access to the necessary information from the seller to pay the tax in advance as required by the law. Not only that, the advance tax rate could exceed the returns daily traders expect to see, as well as taking a lot of extra time and effort to fine. But one investor told Forkast it could have some benefit. However, Gaitonde says there is still a lot of work to do, especially with clarifying the status of non-custodial wallets. Meanwhile, according to the Economic Times of India, the Blockchain and Crypto Assets Council met over the weekend to discuss concerns over how the tax could hit trading volumes. However, according to data from CoinGecko, that doesn't seem to have happened quite yet, with exchanges including WazirX and CoinDCX's saying a continued boost to the trading volumes. The escalation in Eastern Europe between Russia and Ukraine has the world on edge, and all at war would not only risk lives, obviously in the region, but it can also have far reaching consequences on energy markets, as well as just about every other asset. So how will these developments impact the world of Crypto with Kelvin Lam as CEO of Lithium Finance, we're going to find out. Angie Lau: This serious threat of a possible war, knocking on the Ukrainian door and really putting the world at edge. Given that Russia is also the third largest player in Bitcoin mining and putting a lot of concerns in Crypto right now, what impact could an actual war have on crypto assets in the region and in the DeFi space, you think? Kelvin Lam: We often like to describe bitcoin in particular as a digital gold, but they actually displayed more correlation to equities over time. So I'd like to think that the mounting tension is obviously sending shockwaves, particularly in an oil and gas. As you mentioned in commodities and in particular, Russian assets by the overall global capital markets are generally focused on quantitative tightening these days, right? So and if we if you look at the historical armed conflict, it appears that there would be initial shocks. But the market also appeared to generally not overreact in these conflicts. So my take would be that despite these shocks, that we will be seeing the medium or longer term negative impact, it's unlikely. --- #Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #Stablecoin #Bithumb #CryptoExchange #Mitsubishi #Beijing2022 #Olympics #NFT #CryptoTax #Regulation

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