B
itcoin is the first decentralized cryptocurrency with a rich history spanning over a decade.
History: In 2008, a person or group named Satoshi Nakamoto published a whitepaper called “Bitcoin: Peer-to-Peer Electronic Cash System.” This article introduces the concept of decentralized digital money and introduces blockchain technology.
Genesis Block: On January 3, 2009, Satoshi Nakamoto released the first block of the Bitcoin blockchain called Genesis Block. This marked the launch of the Bitcoin network, with the Times press stating: “Chancellor on brink of second coin for banks.”
Outcome of the Age: In the early days, Bitcoin coins were rarely accepted and remained for most people. It is used only by hobbyists and developers who appreciate its capabilities. The first transaction with Bitcoin occurred in May 2010, when Laszlo Hanyecz bought two pizzas using 10,000 Bitcoin.
Price fluctuation: In the first years, the price of Bitcoin is low, but as the price increases, it begins to attract attention. year 2013. The price was first raised to $1,000 in November 2013, making it a well-protected property.
Mainstream Adoption: Bitcoin has seen a rise in popularity and adoption in recent years, driven by factors such as increasing investors, social media, and the emergence of Bitcoin exchanges and payment processors. Large corporations and corporations have begun to take Bitcoin into consideration, and some have accepted it as a form of payment.
Bitcoin Halving: Bitcoin has a built-in mechanism called “halving” that reduces the value of new Bitcoins created over approximately four years. The first halving occurred in 2012, and subsequent halvings occurred in 2016 and 2020. These events have historically been associated with bull markets and inflation.
Market Peaks and Corrections: Bitcoin’s price has experienced extreme fluctuations over the last few years; There were rapid price increases followed by corrections. The most significant bull run occurred in late 2017, when the price of Bitcoin reached around $20,000 and began to decline in the following months.
Institutional Interest: Institutional interest in Bitcoin and other cryptocurrencies has increased in recent years. Banks, hedge funds, and publicly traded companies began allocating to Bitcoin as a store of value and hedge against inflation.
Legal Update: Bitcoin faces regulatory scrutiny and legal challenges in various jurisdictions. The clarity and acceptance of legislation varies from country to country; Some embrace Bitcoin while others impose restrictions or outright restrictions.
Status: Bitcoin is still the dominant cryptocurrency with large market share and widespread adoption. It is traded on many international exchanges and is recognized as a legitimate asset by investors and financial institutions. But its future path remains unclear due to ongoing debates around scalability, regulatory and environmental issues related to energy use.
India Cryptocurrency Bill 2021
The Cryptocurrency and Official Digital Currency Regulation Bill, 2021 is a bill in India to regulate cryptocurrencies in the country. Here are some highlights of this bill:
Introduction: This bill was introduced in the Indian Parliament during monsoon in July 2021. It was not introduced during the session.
Purpose: This bill is designed to create a legal framework for the regulation of cryptocurrencies in India. It aims to define the nature and scope of cryptocurrencies, establish regulatory frameworks to control their use and business, and may prohibit certain activities associated with cryptocurrencies that are deemed problematic or illegal.
Ban on Private Cryptocurrencies: One of the Key Provisions The main point of the Bill is that India can ban private cryptocurrencies. While the facts and circumstances of the ban are unclear, there are indications that the government will decide to ban the use, trading and mining of certain cryptocurrencies, except for private use or digital assets issued or approved by the government.
Promotion of digital rupee: The bill also aims to promote the use of digital currencies, such as digital versions of the Indian rupee, issued by the Reserve Bank of India (RBI). The Reserve Bank of India has explored the possibility of setting up a digital banking center (CBDC) under competition law in India and the bill will include regulations to support the adoption and management of digital currency.
Discussion: The Government of India has expressed its intention to engage in dialogue with stakeholders, including industry officials, experts and the public, before finalizing the bill. This process collects comments and suggestions to inform the creation of laws and ensure that they address the concerns and interests of all stakeholders.
Uncertainty and prospects: Cryptocurrency applications have created interest and speculation among India’s cryptocurrency community and the general public. The possible impact of the bill, especially the ban on private cryptocurrencies, has caused uncertainty among cryptocurrency users, investors and businesses operating in the country.
India blocks global cryptocurrency sites Binance, Kucoin, OKX and others over money laundering concerns
India blocks foreign countries’ cryptocurrency exchanges and virtual assets like Binance, Kucoin and OKX blocks access to programs. The Android versions of these applications are also expected to be removed.
Blocking access to foreign crypto platforms aims to help domestic exchanges, which have recently seen a surge in registrations due to government restrictions and interest Innovation in ETFs enables US to invest in digital assets following SEC approval.
Recently, financial intelligence agencies claim that foreign stock markets are attracting more investors to Indian stock markets and creating a competitive environment. CoinDCX co-founder Sumit Gupta said this would not only increase trust but also mean a change in the legal system that investors trust.
India on Friday blocked the online platforms of foreign cryptocurrency exchanges and virtual asset providers such as Binance, Kucoin and OKX.
As they are removed, the Android versions of these applications will also be removed. “It’s over,” the senior official said. The Ministry of Electronics and Information Technology (MeitY) on Wednesday ordered Apple to remove offshore cryptocurrency apps from its store.
The Treasury Department has issued subpoenas to nine offshore currency exchanges accused of operating illegally in India for failing to comply with the country’s anti-laundering laws.
The Financial Intelligence Unit (FIU) of the Ministry of Finance of India has issued a notice to 9 offshore cryptocurrency exchanges and asked the Ministry of Electronics and Information Technology (MeitY) to block the Indian URLs. The operation was triggered by alleged violations of India’s anti-money laundering laws. According to a report prepared by the Ministry of Finance, nine cryptocurrency exchanges, including Binance and KuCoin, are operating illegally in India. The nine exchanges that received the warning include Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfenex.
– In response to the Financial Intelligence Unit of India (FIU IND) has issued notices under Section 13 of the Prevention of Money Laundering Act, 2002 (PMLA) for the following 9 offshore Virtual Digital Asset Service Providers (VDAs) . SPs).
Virtual digital asset service providers operating within or outside India engage in activities such as exchange of digital assets and legal assets, transfer of virtual digital assets, maintenance or management of virtual digital assets. or encouraging the exchange of virtual digital assets. Management of virtual digital assets must be registered as a “guide” with the Ministry of Finance of India. They must comply with the provisions under the Prevention of Money Laundering Act, 2002 (PMLA).
30% tax rate for Bitcoin income in Budget 2022
There is no specific mention of 30% tax rate for Bitcoin income in India’s Budget 2022. In fact, cryptocurrency taxation is a complex and evolving field and tax rates may vary. varies depending on circumstances such as type of business, holding period and personal tax situation.In India, taxation of cryptocurrency transactions falls under the purview of the Income Tax Act, 1961. Cryptocurrency profits are generally considered capital gains or income from business, depending on the situation, such as frequency of changes, intent, etc. retention and the taxpayer’s job or position.
Capital Gains: If you hold cryptocurrencies as investments and sell them later, you get to hold them for a period of time (long term) Usually More than 36 months, less than short-term income (more than 36 months), the benefit is treated as capital gain. Long-term capital gains are taxed at a lower rate, while short-term capital gains are taxed at a lower rate. A lower income rate for individuals
Business Income: If you are engaged in cryptocurrency trading as a business or activity, profits from these activities are considered business income and are taxable at the applicable income tax rate. for individuals.
Goods and Services Tax (GST): Currently, GST does not apply to the purchase or sale of cryptocurrencies in India. However, GST may apply to some cryptocurrency-related services such as mining, trading or trading platforms.
International Tax Implications: For persons resident in India for tax purposes but holding cryptocurrency assets abroad or dealing with cryptocurrency assets in international transactions, India’s foreign exchange regulations and international tax treaties will be affected.
A qualified tax advisor or chartered accountant should be consulted to understand the specific tax benefits of your cryptocurrency transactions and the latest changes in tax laws and regulations, depending on your personal circumstances. Cryptocurrency tax laws are subject to change, so it is important to be alert to any developments or announcements from tax authorities.
