Weekly Crypto Update

India legalizes crypto, unveils 30% tax on sale of digital assets


India announced plans to begin taxing income from digital assets on Tuesday, while also setting out plans for the launch of its own digital currency.

The Indian government unveiled a tax of 30% on the sale of crypto assets in a move that brings more clarity to the regulatory and tax treatment of cryptocurrencies following months of uncertainty about their legal status in the country.



“There’s been a phenomenal increase in transaction in virtual digital assets,” Finance Minister Nirmala Sitharaman said in her annual budget speech on Tuesday. “The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.”

Sitharaman also announced plans for an Indian central bank digital currency (CBDC) that will be launched in April. The country's central bank - The Reserve Bank of India (RBI) - has been working on a phased implementation strategy for the CBDC.


Among the rules for the tax treatment of digital assets are that losses from the sale of crypto assets cannot be set off against any other income, and digital asset gifts will be taxed in the hands of the recipient.


Source


Microstrategy continues to buy Bitcoin


Microstrategy has bought an additional 600 bitcoin for 25 million USD at an average price of $37,865 per BTC. The company now holds 125,051 BTC purchased at the average price of $30,200 per BTC.


Carrefour entering the Sandbox Metaverse


The supermarket Giant Carrefour has just announced that it had purchased land in The Sandbox Metaverse. They plan on releasing products on the metaverse as well as hosting events. The group also talked about exploring the NFT universe in the near future. This shows the importance companies are giving the metaverse.


$1B worth of ETH burned in the past 30 days due to record high OpenSea NFT transactions


According to blockchain over $1.096 billion worth of Ethereum has been burned in the past month. While sending and receiving ETH does not cost much, higher level tasks, such as minting NFTs, via smart contracts cost far more.

In January, the total volume of NFT transactions on OpenSea hit an all-time high of $3.5 billion.

However, Ethereum is still an inflationary blockchain network, the current issuance of 5.4 million ETH per year surpasses 3.5 million ETH burned. The supply of ETH will peak only after the removal of its proof-of-work mechanism via its transition to proof-of-stake.


Once that happens, the total amount of new emissions will be less than that of token burns, resulting in a net deflationary network. The PoS transition will occur in the second or third quarter of this year.


Cardano Millionaire Whales Have Increased Holdings by 40% in January: Details


IntoTheBlock notes that the balance held by addresses with 1-10 million ADA has increased by 40.65% in just the first month of 2022. It states that these addresses now collectively hold 24.87% of the circulating supply, which is presently 33.57 billion ADA.

ADA seems to be seeing accumulation from different types of whales. Cardano addresses with a balance between 10,000 and 1,000,000 ADA have increased by a staggering 15,000% since mid-December 2021. This category of investors more than doubled their holdings by accumulating $53.6 million in tokens in late January.





Morgan Stanley Sees $8 Trillion Metaverse Market In China Alone


The Wall Street giant said in a note to investors that the virtual space in China alone would become an $8 trillion market in the future., the same valuation fellow investment bank Goldman Sachs recently forecast the metaverse would be worth globally.


Once the metaverse begins disrupting offline activity, such as vehicle test-drives, real-estate showings and education, that opportunity will grow to $8 trillion.

The metaverse will become the next generation platform to replace the mobile internet. It is expected that the metaverse will be expansive and go beyond the current online consumption market, which is mainly dominated by e-commerce and online entertainment spending.


#cryptonews #metaverse #bitcoin #ethereum #cardano

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