Tag Archives: platforms

Decentralized Platforms May Benefit From Strict US Crypto Tax Laws

Decentralized Platforms May Benefit From Strict US Crypto Tax Laws
For the first time, cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements. This reflects growing interest driven by rising digital asset valuations. The shift could also lead investors to decentralized platforms, as analysts say.

According to the final regulation published by the US Internal Revenue Service (IRS), centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies,

As per IRS report issued in June 2024, this decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency.

Anndy Lian, author and intergovernmental blockchain said, some investors may see this as an overreach, which could drive more users to decentralized trading platforms.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph.

Swiss state-owned bank PostFinance launches ETH staking

A crypto-friendly retail bank, PostFinance, fully owned by the Swiss government, is offering Ether staking to its 2.7 million customers, who make up roughly a quarter of the Swiss population.

In a blog post on Jan 16, the bank said the service would offer investments using Ether

ETH $3,380.90 for a fixed minimum term of twelve weeks, with the opportunity to sell the credited staking rewards.

It comes as other traditional banks move into the crypto space. In December, Anchorage Digital became the first US federally chartered bank to support liquid Ether staking.

A minimum of 32 Ether is generally required to stake, worth roughly $106,000, according to CoinGecko. PostFinance says it will allow people to stake using 0.1 Ether, worth roughly $331.

Alexander Thoma, head of digital assets at PostFinance, said in a statement that the bank’s staking service will be based on native staking directly on the Ethereum blockchain.

He said, “The staking service is completely integrated into PostFinance’s existing services.”

“This means that customers can see their staking rewards directly in their asset statement, together with their other crypto assets,” Thoma added.

 

 

Source: https://www.outlookmoney.com/cryptocurrency/decentralized-platforms-may-benefit-from-strict-us-crypto-tax-laws

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Decentralized platforms may benefit from strict US crypto tax laws

Decentralized platforms may benefit from strict US crypto tax laws

Cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements for the first time, reflecting growing interest driven by rising digital asset valuations. This shift could lead investors to decentralized platforms, analysts say.

Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies, according to the final regulation published by the US Internal Revenue Service (IRS).

The decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency, according to the IRS’ report issued in June 2024.

Some investors may see this as an overreach, which could drive more users to decentralized trading platforms, according to Anndy Lian, author and intergovernmental blockchain expert.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph:

“This shift could lead to a paradoxical situation where the IRS’s desire for tax revenue might drive more users towards environments where tax enforcement is currently unfeasible.”

Showcasing the crypto industry’s backlash, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that the rules are unconstitutional since they include decentralized exchanges (DEXs) under the “broker” term, extending data collection requirements to them.

Blockchain analytics could make DeFi transactions traceable by 2027

Crypto transactions on decentralized finance (DeFi) protocols are harder to trace for tax authorities since these platforms aren’t operated by central intermediaries.

However, DeFi protocols will likely become more traceable by 2027, thanks to advanced blockchain analytics, Lian said, adding:

“While decentralized systems currently pose challenges for tax enforcement, advancements in blockchain analytics and potential regulatory developments by 2027 could change this landscape.”

To prevent a potential exodus, Lian said the crypto industry needs specialized tax brackets that account for high volatility and significant retail participation. “Treating crypto gains the same as traditional capital gains may not always be fair,” he said.

The soaring cryptocurrency valuations have invited the attention of other jurisdictions as well.

European retail investors should also brace for taxation following the implementation of the Markets in Crypto-Assets (MiCA) framework, according to Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum, a regulatory and blockchain infrastructure firm focused on institutions.

He told Cointelegraph:

“Retail users will be way more, obligated to provide information, data which will be screened. They will be accounted for. Most Europeans will see taxation.”

MiCA is the world’s first comprehensive regulatory crypto framework, which went into full effect for crypto-asset service providers on Dec. 30.

 

Source: https://cointelegraph.com/news/decentralized-platforms-gain-from-strict-us-crypto-tax-laws

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Session 2: Blockchain: Architecture and Platforms by Anndy Lian

Session 2: Blockchain: Architecture and Platforms by Anndy Lian

Anndy Lian, a renowned business strategist and blockchain expert, led a captivating training session for the Asian Productivity Organization (APO) and the National Productivity Centre (NPCC). For his session, he wanted to demystify the complex world of blockchain architecture, platforms, and their integration with other cutting-edge technologies.

Lian began by breaking down the fundamental building blocks of blockchain architecture. He explained how individual computers or devices, known as nodes, form the backbone of the network, each meticulously maintaining a copy of the blockchain and working collaboratively to validate transactions. He delved into the concept of the blockchain protocol, a set of rules and procedures that dictate the network’s operation, including the crucial consensus mechanisms that ensure all nodes agree on the blockchain’s state.

He then ventured into the different types of blockchains, each with unique characteristics and applications. Public blockchains, like Bitcoin and Ethereum, are open to anyone, operating in a decentralized and transparent manner. Private blockchains, on the other hand, are permissioned networks accessible only to a select group, often favored by organizations prioritizing efficiency and control. Lastly, hybrid blockchains combine elements of both, offering flexibility and scalability by controlling data visibility.

To illustrate blockchain’s real-world impact, Lian presented a compelling case study involving IBM and Maersk’s TradeLens platform. This innovative platform leverages blockchain to revolutionize global trade by digitizing and streamlining processes, addressing the challenges posed by traditional manual systems. TradeLens creates a transparent and tamper-proof system for tracking shipments and managing documentation, paving the way for a more efficient and secure global trade network.

Lian emphasized that blockchain’s potential is unlocked when integrated with other emerging technologies. He highlighted its synergy with Artificial Intelligence (AI) and Machine Learning, where blockchain can enhance AI models by securing data sharing for training and enabling the creation of decentralized AI systems. He also explored its role in the Internet of Things (IoT), where blockchain enhances security, transparency, and decentralized management of connected devices and data.

Looking towards the future, Lian discussed how blockchain can strengthen security and enable efficient device authentication in the rapidly evolving domains of 5G and Edge Computing. He also touched upon its potential in Augmented Reality (AR) and Virtual Reality (VR), where blockchain can enhance security and ownership of digital assets.

For government officials considering blockchain adoption, Lian offered practical advice. He encouraged starting small with a simple project to gain a practical understanding of the technology and its potential. He stressed the importance of clearly defining objectives, identifying the specific problem blockchain will solve, and understanding the data involved. Choosing the right platform is crucial, considering factors like security, scalability, support, and long-term viability. Finally, he emphasized prioritizing data security and privacy, implementing robust measures to protect sensitive information.

The session concluded with an engaging Q&A, where participants sought Lian’s insights on various aspects of blockchain technology. He addressed questions on consensus mechanisms, mining, 51% attacks, the proliferation of blockchain platforms, and interoperability challenges. Lian stressed the importance of choosing reputable platforms with solid backing and comprehensive documentation, advising participants to seek expert guidance for complex integrations.

Anndy Lian’s session provided invaluable insights into the transformative potential of blockchain technology. He demystified its complexities, offered practical guidance for implementation, and ignited the imagination of participants by showcasing its potential to revolutionize various sectors. As blockchain continues to evolve, its integration with other emerging technologies promises to unlock unprecedented opportunities for innovation and efficiency across industries and government services alike.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j