Crypto markets dipped again on Friday morning. Leveraged positions worth $1.2 billion were wiped out due to the crash. Why are cryptocurrencies crashing?&nbsp;Illia Otychenko, lead analyst at the CEX.IO exchange, told DL News that Bitcoin's latest drop is driven by macro stress. He said that the US government's shutdown, global trade tensions, and the outflow from Bitcoin ETFs have created what he called a "risk-off" environment.&nbsp;Dom Harz, co-founder of the BOB blockchain, said that there is a strong conviction that Bitcoin is a utility asset and not just a store of value.&nbsp;Citrini Research has warned that Donald Trump’s future trade strategy will either upend the market or remain a key source of volatility. It said that promises of de-escalation or stimulus might prevent a collapse.&nbsp;Another key factor to watch could be the anticipated&nbsp;policy announcement of the US Federal Reserve. A 25 bps cut in the rate could boost investor sentiment.<h2>What has triggered the crypto market crash?</h2>The ongoing US-China trade tensions have added to the fear among all investors of risk assets. Also, many investors are booking profits after the crypto market cap hit a record $4.27 trillion. The cryptomarket reacts strongly to macro and sentiment shocks.&nbsp;Markets, however, recovered a bit as US-China sentiment eased.&nbsp;On Friday morning, Bitcoin fell 4 per cent to around $103,550. Ethereum dropped to below $3,700, marking a 24% drop from its August peak.&nbsp;On October 6, Bitcoin's value hit its highest ever at $126,251. However, since then, the cryptocurrency has lost nearly 18 per cent of its value.&nbsp;The market capitalization has slid 5.9% to $3.64 trillion, which is at its lowest level since July.

Crypto markets dipped again on Friday morning. Leveraged positions worth $1.2 billion were wiped out due to the crash. Why are cryptocurrencies crashing?

Crypto markets dipped again on Friday morning. Leveraged positions worth $1.2 billion were wiped out due to the crash. Why are cryptocurrencies crashing? Illia Otychenko, lead analyst at the CEX.IO exchange, told DL News that Bitcoin's latest drop is driven by macro stress. He said that the US government's shutdown, global trade tensions, and the outflow from Bitcoin ETFs have created what he called a "risk-off" environment. Dom Harz, co-founder of the BOB blockchain, said that there is a strong conviction that Bitcoin is a utility asset and not just a store of value. Citrini Research has warned that Donald Trump’s future trade strategy will either upend the market or remain a key source of volatility. It said that promises of de-escalation or stimulus might prevent a collapse. Another key factor to watch could be the anticipated policy announcement of the US Federal Reserve. A 25 bps cut in the rate could boost investor sentiment. What has triggered the crypto market crash? The ongoing US-China trade tensions have added to the fear among all investors of risk assets. Also, many investors are booking profits after the crypto market cap hit a record $4.27 trillion. The cryptomarket reacts strongly to macro and sentiment shocks. Markets, however, recovered a bit as US-China sentiment eased. On Friday morning, Bitcoin fell 4 per cent to around $103,550. Ethereum dropped to below $3,700, marking a 24% drop from its August peak. On October 6, Bitcoin's value hit its highest ever at $126,251. However, since then, the cryptocurrency has lost nearly 18 per cent of its value. The market capitalization has slid 5.9% to $3.64 trillion, which is at its lowest level since July.

Why are crypto markets falling? The ongoing US-China trade tensions have added to the fear among all investors of risk assets.

Why are crypto markets falling? Explained

As part of fighting international money laundering crimes, U.S. and Indian authorities coordinated in real time to seize cryptocurrency assets worth USD 150 million linked to drug trafficking, according to just released details. The details emerged from the Financial Action Task Force (FATF), Egmont Group-an international organization of Financial Intelligence Units (FIUs), INTERPOL and the United Nations Office on Drugs and Crime (UNODC) handbook that was released in Paris earlier today. The handbook calls for stronger global collaboration among analysts, investigators, and prosecutors to deal with the issue.&nbsp;&nbsp;The handbook pointed out that in 2022, the US Department of Justice sought assistance from the Indian govt under treaty of mutual legal assistance in criminal matters to investigate a major drug trafficking organization led by 2 people. The organisation was involved in the illicit distribution of drugs including Fentanyl, heroin, and others and operated through encrypted communications and cryptocurrency wallets. The investigation revealed that the brothers controlled over 8500 bitcoins, valued at $150 million and were used for money laundering and to finance drug trafficking activities.&nbsp;&nbsp;In response to the US request, India's ED launched an investigation and obtained key records uncovering transfers through a digital payment services provider exceeding Rs 5.54 crore. The handbook, as seen by WION said, "the case is a strong example of real time, cross border coordination between India, US" and pointed out that US officials travelled to India "to assist directly in the investigation, including during interviews of the accused". &nbsp;Due to the cooperation the people involved were arrested in April 2024 and a prosecution complaint was filed which marked "a major step in dismantling the transnational drug trafficking" network.&nbsp;&nbsp;The handbook also listed Indian examples on how to deal with international cooperation when it comes to dealing with money laundering. It said India's home ministry has established a set of standardised guidelines for international cooperation issued under criminal procedure code and prevention of money laundering act or PMLA. These guidelines provide a clear and structured framework for managing incoming and outgoing MLA -Mutual Legal Assistance requests, "marking a significant step towards standardising India's international cooperation efforts".&nbsp;&nbsp;An online portal has been launched as well by India, that provides a template for making requests to various countries. Examples from the UK, with the UK Central Authority and Argentina, via its electronic form have also been listed.&nbsp;

India, US coordinate real time to seize cryptocurrency assets worth $150 Million

As part of fighting international money laundering crimes, U.S. and Indian authorities coordinated in real time to seize cryptocurrency assets worth USD 150 million linked to drug trafficking, according to just released details. The details emerged from the Financial Action Task Force (FATF), Egmont Group-an international organization of Financial Intelligence Units (FIUs), INTERPOL and the United Nations Office on Drugs and Crime (UNODC) handbook that was released in Paris earlier today. The handbook calls for stronger global collaboration among analysts, investigators, and prosecutors to deal with the issue. The handbook pointed out that in 2022, the US Department of Justice sought assistance from the Indian govt under treaty of mutual legal assistance in criminal matters to investigate a major drug trafficking organization led by 2 people. The organisation was involved in the illicit distribution of drugs including Fentanyl, heroin, and others and operated through encrypted communications and cryptocurrency wallets. The investigation revealed that the brothers controlled over 8500 bitcoins, valued at $150 million and were used for money laundering and to finance drug trafficking activities. In response to the US request, India's ED launched an investigation and obtained key records uncovering transfers through a digital payment services provider exceeding Rs 5.54 crore. The handbook, as seen by WION said, "the case is a strong example of real time, cross border coordination between India, US" and pointed out that US officials travelled to India "to assist directly in the investigation, including during interviews of the accused". Due to the cooperation the people involved were arrested in April 2024 and a prosecution complaint was filed which marked "a major step in dismantling the transnational drug trafficking" network. The handbook also listed Indian examples on how to deal with international cooperation when it comes to dealing with money laundering. It said India's home ministry has established a set of standardised guidelines for international cooperation issued under criminal procedure code and prevention of money laundering act or PMLA. These guidelines provide a clear and structured framework for managing incoming and outgoing MLA -Mutual Legal Assistance requests, "marking a significant step towards standardising India's international cooperation efforts". An online portal has been launched as well by India, that provides a template for making requests to various countries. Examples from the UK, with the UK Central Authority and Argentina, via its electronic form have also been listed.

In response to the US request, India's ED launched an investigation and obtained key records uncovering transfers through a digital payment services provider exceeding Rs 5.54 crore

Just one day after it went after world's largest cryptocurrency exchange Binance, the United States Security and Exchange Commission (SEC) has sued Coinbase, the largest cryptocurrency platform in the country. The SEC has accused Coinbase of operating illegally because it failed to register as an exchange. This is being seen as another blow to the crypto industry.

The cases against both crypto exchanges are part of SEC Chair Gary Gensler's push to assert jurisdiction over the crypto industry. Gensler on Tuesday repeated his charge that the crypto industry was like "Wild West" that has undermined investor trust in the US capital markets.

"The whole business model is built on a noncompliance with the U.S. securities laws and we're asking them to come into compliance," Gensler told CNBC.

Watch | US sues Binance, founder Zhao alleging securities law violations

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-sues-binance-founder-zhao-alleging-securities-law-violations-601071/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

On their part, crypto companies say that SEC rules are not clear. The companies also say that the agency is overreaching and trying to regulate them.

<h2>Lawsuit rattles Coinbase customers</h2>

Data firm Nansen has made an initial estimate that Coinbase suffered about USD 1.28 billion in outflows following the lawsuit

Paul Grewal, Coinbase's general counsel, in a statement said the company will continue operating as usual and has "demonstrated commitment to compliance."

On Tuesday, 10 US states led by California also accused Coinbase of securities law violations concerning its staking rewards programme.

Shares of Coinbase's parent Coinbase Global Inc closed down $7.10, or 12.1%, at $51.61 after earlier falling as much as 20.9%. They are up 46% this year.

The SEC has filed the complaint in Manhattan Federal court. In its complaint, the regulator says that Coinbase has made billions of dollars since 2019 by functioning as a middleman on crypto transactions but evaded disclosure requirements that are designed to protect investors.

Also Read | <a href="https://www.wionews.com/business-economy/explained-us-charges-crypto-giant-binance-with-violating-securities-laws-whats-the-case-601095">Explained: US charges crypto giant Binance with violating securities laws. What's the case?</a>

The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon.

Coinbase was founded in 2012. Recently, it served upwards of 108 million customers. It ended March with USD 130 billion of customer crypto assets and funds. Seventy-five per cent of its USD 3.15 billion net revenue was generated by transactions.

The lawsuit filed by SEC is seeking civil fines along with recouping of ill-gotten gains and injunctions relief. In the month of March this year, the SEC had warned Coinbase that charges may be coming

"You simply can't ignore the rules because you don't like them," SEC Enforcement Chief Gurbir Grewal, who is not related to Paul Grewal, said in a statement.

(With inputs from agencies)

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

WATCH WION LIVE HERE

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Just one day after it went after world's largest cryptocurrency exchange Binance, the United States Security and Exchange Commission (SEC) has sued Coinbase, the largest cryptocurrency platform in the country.

Just one day after it went after world's largest cryptocurrency exchange Binance, the United States Security and Exchange Commission (SEC) has sued Coinbase, the largest cryptocurrency platform in the country. The SEC has accused Coinbase of operating illegally because it failed to register as an exchange. This is being seen as another blow to the crypto industry. The cases against both crypto exchanges are part of SEC Chair Gary Gensler's push to assert jurisdiction over the crypto industry. Gensler on Tuesday repeated his charge that the crypto industry was like "Wild West" that has undermined investor trust in the US capital markets. "The whole business model is built on a noncompliance with the U.S. securities laws and we're asking them to come into compliance," Gensler told CNBC. Watch | US sues Binance, founder Zhao alleging securities law violations × On their part, crypto companies say that SEC rules are not clear. The companies also say that the agency is overreaching and trying to regulate them. Lawsuit rattles Coinbase customers Data firm Nansen has made an initial estimate that Coinbase suffered about USD 1.28 billion in outflows following the lawsuit Paul Grewal, Coinbase's general counsel, in a statement said the company will continue operating as usual and has "demonstrated commitment to compliance." On Tuesday, 10 US states led by California also accused Coinbase of securities law violations concerning its staking rewards programme. Shares of Coinbase's parent Coinbase Global Inc closed down $7.10, or 12.1%, at $51.61 after earlier falling as much as 20.9%. They are up 46% this year. The SEC has filed the complaint in Manhattan Federal court. In its complaint, the regulator says that Coinbase has made billions of dollars since 2019 by functioning as a middleman on crypto transactions but evaded disclosure requirements that are designed to protect investors. Also Read | Explained: US charges crypto giant Binance with violating securities laws. What's the case? The SEC said Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano and Polygon. Coinbase was founded in 2012. Recently, it served upwards of 108 million customers. It ended March with USD 130 billion of customer crypto assets and funds. Seventy-five per cent of its USD 3.15 billion net revenue was generated by transactions. The lawsuit filed by SEC is seeking civil fines along with recouping of ill-gotten gains and injunctions relief. In the month of March this year, the SEC had warned Coinbase that charges may be coming "You simply can't ignore the rules because you don't like them," SEC Enforcement Chief Gurbir Grewal, who is not related to Paul Grewal, said in a statement. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US SEC goes after crypto exchange Coinbase, just one day after suing Binance

US authorities have charged an ex-product manager at Coinbase Global and&nbsp;two others in a cryptocurrency insider trading case.

Reports claimed the former product manager Ishan Wahi and his brother Nikhil Wahi were arrested in Seattle. Another person named Sameer Ramani is reportedly at large.

<a href="https://www.wionews.com/world/singapores-central-bank-to-tighten-regulations-around-cryptocurrency-crypto-companies-sweat-profusely-498910">Also Read:&nbsp;</a><a href="http://13.235.153.162/world/singapores-central-bank-to-tighten-regulations-around-cryptocurrency-crypto-companies-sweat-profusely-498910" hreflang="en">Singapore's central bank to tighten regulations around cryptocurrency</a>

It is the first insider trading case involving cryptocurrency. Ishan Wahi had allegedly leaked insider information to his brother Nikhil Wahi, 26, and his friend Sameer Ramani, 33, before Coinbase Global Inc was listed on the crypto exchange.

The three accused were charged with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency, the US government said in a statement.

Watch:&nbsp;Cryptocurrency continues to crumble

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/cryptocurrency-continues-to-crumble-bitcoin-slumps-below-20000-489734/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

While announcing the development, US attorney Damian Williams said: “Today’s charges are a further reminder that Web3 is not a law-free zone. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street."

FBI's assistant director Michael J. Driscoll said the allegation related to crypto exchange "still constitutes insider trading".

"The defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totalling approximately $1.5 million," Driscoll said while informing that the agency was committed to protecting the "integrity of all financial markets – both ‘old’ and ‘new’.”&nbsp;

Coinbase is reportedly one of the largest cryptocurrency exchanges in the world.&nbsp;Ishan Wahi was the product manager at Coinbase asset listing team, the US government informed and he had "detailed and advanced knowledge" of crypto assets Coinbase was planning to list.

The US government informed Ishan Wani, 32, had acquired a one-way flight to India as he was to be interviewed by Coinbase over the alleged fraud.

The US government alleged that Ishan Wahi tipped his brother Nikhil and associate Sameer Ramani so that they could place profitable trades in crypto assets in advance of Coinbase’s public listing and they reportedly used anonymous Ethereum blockchain wallets to acquire crypto assets.

(With inputs from Agencies)

<main role="main">
<form accept-charset="UTF-8" action="http://13.235.153.162/admin/structure/videoembed" data-drupal-selector="video-embed-form" id="video-embed-form" method="post">WATCH WION LIVE HERE</form>
</main>

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

US authorities have charged an ex-product manager at Coinbase Global and two others in a cryptocurrency insider trading case. Reports claimed the former product manager Ishan Wahi and his brother Nikhil Wahi were arrested in Seattle.

US authorities have charged an ex-product manager at Coinbase Global and two others in a cryptocurrency insider trading case. Reports claimed the former product manager Ishan Wahi and his brother Nikhil Wahi were arrested in Seattle. Another person named Sameer Ramani is reportedly at large. Also Read: Singapore's central bank to tighten regulations around cryptocurrency It is the first insider trading case involving cryptocurrency. Ishan Wahi had allegedly leaked insider information to his brother Nikhil Wahi, 26, and his friend Sameer Ramani, 33, before Coinbase Global Inc was listed on the crypto exchange. The three accused were charged with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency, the US government said in a statement. Watch: Cryptocurrency continues to crumble While announcing the development, US attorney Damian Williams said: “Today’s charges are a further reminder that Web3 is not a law-free zone. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street." FBI's assistant director Michael J. Driscoll said the allegation related to crypto exchange "still constitutes insider trading". "The defendants made illegal trades in at least 25 different crypto assets and realized ill-gotten gains totalling approximately $1.5 million," Driscoll said while informing that the agency was committed to protecting the "integrity of all financial markets – both ‘old’ and ‘new’.” Coinbase is reportedly one of the largest cryptocurrency exchanges in the world. Ishan Wahi was the product manager at Coinbase asset listing team, the US government informed and he had "detailed and advanced knowledge" of crypto assets Coinbase was planning to list. The US government informed Ishan Wani, 32, had acquired a one-way flight to India as he was to be interviewed by Coinbase over the alleged fraud. The US government alleged that Ishan Wahi tipped his brother Nikhil and associate Sameer Ramani so that they could place profitable trades in crypto assets in advance of Coinbase’s public listing and they reportedly used anonymous Ethereum blockchain wallets to acquire crypto assets. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Three Indians charged in first crypto insider trading case in US

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments.

The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each.

Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies.

<a href="https://www.wionews.com/technology/625-million-in-ether-stolen-in-one-of-the-biggest-crypto-heists-466848">Also Read:&nbsp;$625 million in Ether stolen in one of the biggest crypto heists</a>

Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in&nbsp;crypto assets as a commodity. According to a study, Indonesia's crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation.

Watch:&nbsp;Crypto romance scams: Don't fall for dating app swindlers

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/crypto-romance-scams-dont-fall-for-dating-app-swindlers-466445/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

A report claims 41 per cent of Indonesians aged between 18 and 75 with an annual income of over $14,000 own crypto assets with most Indonesians convinced that crypto is the future of money.

Bitcoin, Ethereum and Solana have gained traction in the country as the Indonesian government eyes a digital economy even as crypto investors have doubled in the last two years.&nbsp;

According to Indonesia's trade ministry, Bitcoin transactions grew 14 times from $4.1 billion in 2020 to $59.83 billion in 2021. A body under the trade ministry called Commodity Futures Trading Regulatory Agency (BAPPEBTI) oversees cryptocurrency trading in the country.

(With inputs from Agencies)

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments. The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments. The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each. Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies. Also Read: $625 million in Ether stolen in one of the biggest crypto heists Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in crypto assets as a commodity. According to a study, Indonesia's crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation. Watch: Crypto romance scams: Don't fall for dating app swindlers A report claims 41 per cent of Indonesians aged between 18 and 75 with an annual income of over $14,000 own crypto assets with most Indonesians convinced that crypto is the future of money. Bitcoin, Ethereum and Solana have gained traction in the country as the Indonesian government eyes a digital economy even as crypto investors have doubled in the last two years. According to Indonesia's trade ministry, Bitcoin transactions grew 14 times from $4.1 billion in 2020 to $59.83 billion in 2021. A body under the trade ministry called Commodity Futures Trading Regulatory Agency (BAPPEBTI) oversees cryptocurrency trading in the country. (With inputs from Agencies)

Amid boom, Indonesia plans to tax crypto assets

As revealed in the Union Budget, profits from trading in crypto and other virtual assets such as non-fungible tokens (NFTs) will be taxed at a flat 30% rate beginning in April.

This would apply to all virtual digital assets (VDA) and their earnings from Bitcoin to non-fungible tokens (NFTs).

Furthermore, for every transaction involving crypto and other virtual assets, 1% of tax will be deducted at source (TDS).&nbsp;

For example, if a crypto investor buys crypto for Rs 10,000 and sells it for Rs 15,000, netting a profit of Rs 5,000, the investor will face a 30% tax on the profit.&nbsp;

Meanwhile, with only a few days till the new tax system for crypto assets takes effect, numerous investors are reportedly booking profits, rejigging their portfolios, or transferring their crypto assets to private wallets outside of India.&nbsp;

Crypto investors should be aware of a few fiscal regulations for the years 2022-2023:

1: After accounting for all bitcoin transactions for the year, no tax will be required to be paid if an investor is losing money with no earnings.

2: Furthermore, investors will not be taxed if they purchase a crypto asset that has gained in value but are unable to sell it due to market conditions. The profits will not be taxed until they sell it for a profit.

3: When calculating taxes, losses from one type of VDA cannot be offset by gains from other VDA transactions.This means that investors will have to pay a 30% tax on any gains made, while losses will not be deducted from the final taxation amount when trading other tokens.As a result, if you make a profit on one token but lose on another, you must still pay 30% on the profitable token.&nbsp;

4: TDS will be imposed on July 1 and will be deducted from the whole transaction value, regardless of whether the investor makes a profit or a loss.

5: Experts and business owners will be unable to deduct gains or losses from their main income and cryptocurrency revenue.

(With inputs from agencies)

As revealed in the Union Budget, profits from trading in crypto and other virtual assets such as non-fungible tokens (NFTs) will be taxed at a flat 30% rate beginning in April.

As revealed in the Union Budget, profits from trading in crypto and other virtual assets such as non-fungible tokens (NFTs) will be taxed at a flat 30% rate beginning in April. This would apply to all virtual digital assets (VDA) and their earnings from Bitcoin to non-fungible tokens (NFTs). Furthermore, for every transaction involving crypto and other virtual assets, 1% of tax will be deducted at source (TDS). For example, if a crypto investor buys crypto for Rs 10,000 and sells it for Rs 15,000, netting a profit of Rs 5,000, the investor will face a 30% tax on the profit. Meanwhile, with only a few days till the new tax system for crypto assets takes effect, numerous investors are reportedly booking profits, rejigging their portfolios, or transferring their crypto assets to private wallets outside of India. Crypto investors should be aware of a few fiscal regulations for the years 2022-2023: 1: After accounting for all bitcoin transactions for the year, no tax will be required to be paid if an investor is losing money with no earnings. 2: Furthermore, investors will not be taxed if they purchase a crypto asset that has gained in value but are unable to sell it due to market conditions. The profits will not be taxed until they sell it for a profit. 3: When calculating taxes, losses from one type of VDA cannot be offset by gains from other VDA transactions.This means that investors will have to pay a 30% tax on any gains made, while losses will not be deducted from the final taxation amount when trading other tokens.As a result, if you make a profit on one token but lose on another, you must still pay 30% on the profitable token. 4: TDS will be imposed on July 1 and will be deducted from the whole transaction value, regardless of whether the investor makes a profit or a loss. 5: Experts and business owners will be unable to deduct gains or losses from their main income and cryptocurrency revenue. (With inputs from agencies)

India: 30% tax on profits from cryptocurrency assets from April 1

cryptocurrency-assets

Cryptocurrency Assets, News on Cryptocurrency Assets, stories on Cryptocurrency Assets, articles on Cryptocurrency Assets, Cryptocurrency Assets stories at Wion, Cryptocurrency Assets news, Cryptocurrency Assets latest news