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  • Indian Experts Demand Crypto Tax Reduction in 2024 National Budget 🇮🇳📉

Indian Experts Demand Crypto Tax Reduction in 2024 National Budget 🇮🇳📉

PLUS: Solana’s new phone preorders crush Saga’s first-year sales in a day. Manta Network hit with now resolved DDoS attack.

Author

Manan Vora
January 19, 2024

Snapshot Web3

January 19, 2024

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The South Korean president's office has urged the country's financial regulator to reconsider the approval of a local spot Bitcoin exchange-traded fund (ETF), signaling potential openness to the idea. This follows a warning from the Financial Services Commission about potential violations of capital market regulations related to foreign-listed Bitcoin spot ETFs. While South Korea's stance is divided, Singapore and Thailand have stated they are not considering local spot Bitcoin ETFs. In contrast, Hong Kong is emerging as a potential hub in Asia for such ETFs, with regulators addressing requirements, and 10 fund managers, including those backed by Chinese capital, exploring possibilities.

As India awaits the 2024 interim economic blueprint, the crypto community is eager to see changes in the taxation of virtual digital assets (VDAs). Crypto experts are urging the government to remove the 1% Tax Deducted at Source (TDS), arguing that it hampers investor participation by causing capital losses with each trade. Rajagopal Menon of WazirX suggests reducing TDS to 0.01% and allowing the offsetting of losses against gains for a fair crypto industry. Sumit Gupta of CoinDCX sees this budget as a chance to stimulate the VDA sector by lowering the TDS rate and aligning tax rates with other assets. Gupta also proposes establishing a self-regulatory body for India's crypto and blockchain sector.

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Innovation and Launches

The Aave community is entering a critical phase in its expansion strategy as it prepares to vote on a proposal for launching Aave V3 on the BNB Chain. The voting period, starting on January 19, 2024, and concluding on January 23, allows stakeholders to decide on the activation of the Aave V3 BNB pool (3.0.2). Proposed by BGD Labs, the plan includes listings for significant assets like CAKE, WBNB, BTCB, ETH, USDC, and USDT, following recommendations from risk service providers Gauntlet and Chaos Labs. The move signifies the completion of governance procedures, reflecting community approvals, positive technical evaluations, and thorough risk analysis. If approved, this strategic expansion could enhance Aave's presence in the decentralized finance (DeFi) space, particularly within the BNB ecosystem.

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NFT, Gaming and Metaverse

Nifty Island, a crypto game in beta, is gaining attention for its user-friendly design and unique features. The game allows players to build custom islands for free and has a future airdrop incentive. With a focus on flexibility, simplicity, and affordability, Nifty Island stands out from other NFT-powered builder games. It offers a builder's paradise with a variety of tools for customization, and despite requiring a crypto wallet for login, it appeals to those seeking a casual and low-stakes gaming experience. The game's NFT-forward approach has resonated positively, making it one of the best social NFT games.

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Scams and Hacks

Manta Network, a layer-2 blockchain developed by P0xeidon Labs, successfully mitigated a distributed denial-of-service (DDoS) attack, coinciding with the network's token debut on major exchanges. The attack involved an unprecedented 135 million remote procedure call (RPC) requests. Kenny Li, co-founder of P0xeidon Labs, described it as a "very aggressive and timed attack," assuring that blockchain operations and funds remained secure, though communication between applications and the blockchain was briefly hindered. The DDoS incident occurred as Manta tokens started trading on exchanges like Binance, Bithumb, and KuCoin, with the token's current value at $2.27 and a fully diluted market capitalization of $2.2 billion. Trading volume has reached nearly $861 million in the last 24 hours.

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Funding, Acquisitions and Partnerships

Flowdesk, a crypto market maker and liquidity provider for Grayscale's Bitcoin ETF, has secured $50 million in a Series B funding round led by Cathay Innovation, with participation from Ripple and others. The company plans to use the funds to expand its over-the-counter (OTC) offerings, hire new personnel, and enhance regulatory coverage in Singapore and the U.S. The funding comes after the approval of spot Bitcoin ETFs in the U.S., underscoring the significance of liquidity for such funds to attract institutional investments. Flowdesk is also a market maker for Societe Generale's euro-based stablecoin, EUR CoinVertible.

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Price Action

Today's cryptocurrency dip, bringing the overall market cap to $1.67 trillion, is influenced by various factors. Bitcoin's dominance has slightly increased, and the excitement around spot exchange-traded funds (ETFs) appears to be diminishing. The surge in the U.S. dollar, reaching 103.50 in the Dollar Index (DXY), is making crypto less attractive. Strong U.S. economic indicators, including retail sales and rising Treasury yields, impact market expectations. Liquidations, totaling over $137 million in the last 24 hours, contribute to market volatility. The transfer of 8,730 BTC from Grayscale Bitcoin Trust (GBTC) to Coinbase Prime, worth over $376 million, indicates changing investor sentiment after the spot BTC ETF launch. Despite turbulence, some voices remain bullish, emphasizing the crypto market's dynamic nature.

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Interesting Reads

At the Davos conference, the Tokenization Economy panel debated the regulatory approach of "same activity, same risk, same regulation." Euroclear's Lieve Mostrey advocated for technology-agnostic regulation, emphasizing their blockchain-based notes' compliance with existing laws. However, Noelle Acheson argues that this approach limits the potential of blockchain-based securities, citing complexities like settlement finality and reporting requirements. Circle's Jeremy Allaire emphasized that "same activity, same rules" is a backward-looking philosophy and compared it to regulating the early days of the Internet. Acheson suggests a compromise where simple tokenized securities adhere to existing rules, allowing experimentation within sandboxes with regulators' approval.

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Miscellaneous

Solana Mobile’s new web3 smartphone is seeing immense demand, with pre-orders for its “Chapter 2” device surpassing its first phone’s sales in its first year within the first day, according to TechCrunch citing Solana’s co-founder, Raj Gokal.

After many trials and tribulations – and even a string of bankruptcies – Bitcoin (BTC) miners have been able to catch a break in late 2023 with a significant rally in the price of the world’s foremost cryptocurrency. The New Year saw a new trend with these companies as they started selling their cryptocurrency en masse. As of January 17, miners have sold a total of 10,600 BTC worth approximately $452 million, per an X post shared by Ali Martinez, a prominent crypto expert.

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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.

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