Global players cheer crypto tax as first step to nod

Global players cheer crypto tax as first step to nod
Additional comments I have for the article on Economic Times.
India’s plan to put a tax of 30% on crypto gains is a big step forward. Their plans to digitalize their currency is another bigger step forward. This means that India recognizes the importance of crypto, digital assets and their underlying technology, blockchain too. They are able to collect more tax from crypto trading and are able to reduce risks of money laundering, terrorist financing and price volatility using their digital dollar in the future.
 
As mentioned in my previous commentaries, I strongly believe India will not put a ban on crypto as it has a big economic impact on them and some of my friends in India were saying that crypto maybe elevates India’s position globally.
I said this openly on my Twitter yesterday and I am going to say this again. “The next crypto bull market could be led by India.” Adding to this optimism, I would also see that the requirements of the regulations for crypto exchange and users will be tightened up in India very soon to align to protect the Indian market.
Anndy Lian

Global players cheer crypto tax as first step to nod

Mumbai: The worldwide crypto community has lauded India’s announcement to tax cryptocurrencies and develop a blockchain-based, regulator-backed digital currency as a significant step forward toward legitimising the asset class and encouraging innovation in blockchain technology.

“This means that India recognises the importance of crypto, digital assets and their underlying technology, blockchain, too,” said Anndy Lian, Chairman of the Singapore-based BigONE exchange. “The next crypto bull market could be led by India.”

On February 1, Finance Minister Nirmala Sitharaman announced the government would impose a blanket tax rate of 30% on the transfer of “virtual digital assets.”

Global crypto players believe the tax clarity will enable fence sitters to activate their India investments.

“The tax clarity is a very positive step forward. The Indian government is taking a progressive stance by going ahead in the direction of innovation. By bringing in taxation, the government legitimises the crypto industry and trading to a large extent,” said Serdar Bisi, CEO of Tycoon, a Cyprus-based crypto startup. “This makes it now possible for institutions and corporations that have been sitting on the sidelines because of uncertainty to participate in this emerging market and industry.”

Adam Mazzaferro, Founder of Australia-based @pay, said people forget that cryptocurrencies are simply another form of asset class, just like shares and real property, and should be treated in the same light, and the Indian government’s announcement has validated the asset class.

“Indian government’s move to tax cryptocurrencies is welcomed as it is consistent with how other modern economies are treating cryptocurrency,” Mazzaferro said. “Although the taxable rate of 30% is relatively high, any form of government regulation of cryptocurrency is encouraging as it goes a long way towards validating the asset and making it more mainstream and widely accepted in everyday business and commerce.”

Kaz Patafta, co-founder of First Eleven Club and Director of McDonald Patafta & Associate Lawyers, an Australian law firm, said the imposition of crypto asset tax now solidifies the adoption of crypto in India and allays concerns of a regulatory ban in one of the largest transactional markets for virtual assets.

Wahid Chammas, a Cyprus-based investor and chairman of Faith Tribe, an open-source fashion design platform that works with many Indian fashion designers, said that these designers will, for once, have a fighting chance to thrive in the highly competitive global marketplace. “But it would be such a shame for the new crypto tax regime to render them uncompetitive with this highly regressive tax,” he said.

Global crypto experts believe the government’s announcement of 1% TDS at the time of transfer of digital assets will be a powerful tool to track transactions.

Pratik Gauri, CEO and Founder, Singapore-based 5ire, said using Tax Deducted at Source (TDS) was a necessary element and, with the increasing awareness of KYC/AML and how shady segments of society often use crypto to launder money, TDS can provide the government with the needed information and money to build an infrastructure for crypto monitoring for tax purposes.

“I do not think that 1% is a prohibitive amount. And it will simultaneously bring needed foreign exchange and investment to India,” he said.

On Tuesday, Changpend Zhao, CEO of Binance, the world’s biggest crypto exchange, said on Twitter, “Crypto is legally recognised in India with a 30 percent tax.”

However, experts say that the recognition of digital assets under income tax is not akin to granting legal status.

According to Charles Tan, Head of Marketing at Coinstore, India is transitioning from an unregulated to a government-monitored crypto market, which will benefit all stakeholders in the industry.

Global crypto exchanges are also keeping a close eye on India’s progress on its CBDC that, according to the budget announcement, will be launched in FY 22-23.

Jay Hao, CEO of OKX.com, said that central banks around the globe have already launched or are about to launch their digital currencies and that India was slightly lagging in the digital currency race, mainly due to the regulatory hurdles and reluctance to accept the growing popularity of digital assets/digital currency around the world. “I hope the announcement made by the Finance Minister regarding CBDC is implemented without any further delay as it will give a much needed push to the blockchain industry in India,” he said.

The announcement, according to Santiago Sabater, Co-founder of DeFiChain Accelerator in Germany, was a step in the right direction, and the security in taxation is the first step for adoption to progress.”If India manages to support crypto startups, create more fair regulations, and enable cooperation with banks, it has the potential to become the world’s leading crypto-hub for web 3.0,” said Sabater.

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 “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”.

j j j

Bitcoin’s Taproot Upgrade: A Cautious Step in the Right Direction

Bitcoin’s Taproot Upgrade: A Cautious Step in the Right Direction

Bitcoin developers have spent four years developing and deploying Taproot on its mainnet. So far, there have been no reports of failures, errors, etc., to hinder the upgrade, a clear sign of a stable upgrade.

The purpose of Taproot is to improve the usability and privacy of cryptocurrencies and at lower transaction costs. Earlier this year, 90% of Bitcoin miners approved the Taproot upgrade, delivering another significant programming improvement since the 2017 SegWit upgrade patch, which improved Bitcoin’s scalability. So, what problems can Taproot now solve after going live on 14 November 2021?

 

What is Taproot?

Greg Maxwell, a Bitcoin Core developer, first proposed the Taproot upgrade in January 2018. This was followed up by Pieter Wuille who submitted a code acquisition request in October 2020, and Taproot was incorporated into the Bitcoin Core codebase.

Taproot is a Bitcoin soft fork that improves the Bitcoin script. Its goal is to enhance other relevant indicators of complex transactions while increasing privacy.

By releasing time locks and requiring multiple signatures, transactions on the Bitcoin network can become more complex. Anyone can detect transactions that use complex functions, which necessitate the creation of various transactions, without Taproot. The upgrade may conceal some activities associated with such transactions. So now even when these functions are used in a transaction, they appear to be a single transaction. This is a significant change for Bitcoin users who value their privacy.

Taproot has the ability to make people completely invisible to the Bitcoin scripts that are running. For example, after implementing Taproot, different Bitcoin payment methods look the same, whether they are Lightning Network channel transactions, peer-to-peer transactions, or through complex smart contracts. Only peer-to-peer transactions are visible to the monitors of these transactions. However, it is worth noting that Taproot has not changed the fact that the wallet information of the sender and the ultimate recipient is exposed.

 

Bitcoin’s urgent problems

People’s attitudes toward Bitcoin have shifted in recent years. Many people appear to be more willing to use Bitcoin as a tool to combat inflation, and I believe it indeed has superior properties as a store of value.

On the other hand, millions of Bitcoin owners want to see it used more as an accounting unit and payment method; the other two primary functions are defined as currency. The adoption of Bitcoin as a national currency in El Salvador, the first nation to adopt the digital asset officially, is the clearest example of its potential as a currency to date.

Although Bitcoin is regarded as an elegant solution for person-to-person financial transactions, its coding has remained essentially unchanged since its inception in 2008 by a person or a group of people under the pseudonym of Satoshi Nakamoto. These purposefully simplified programming parameters of Bitcoin limit the number of transactions per second, network bandwidth, and settlement speed, enabling a typical block size regardless of data size, reducing efficiency, and increasing transaction costs.

With the introduction of other blockchains, such as Ethereum and Cardano, which can speed up actual transaction payments and provide more complex services, such as DeFi and NFT, the advantages of Bitcoin are becoming less clear.

 

The improvements Taproot provides for Bitcoin

Taproot is a collection of three separate Bitcoin improvement protocols, technically titled BIP 340, 341, and 342. In addition, they will collaborate to provide the following enhancements to the creator of this digital asset:

⦁ Bitcoin transactions will be bundled together during the verification process, reducing total transaction volume while automatically sharing costs among the bundled user transactions.

⦁ Binding features are used in one of the BIP upgrades to improve transaction privacy.

⦁ The most recent Taproot upgrade improved the features and functions of smart contracts in each Bitcoin block.

Schnorr signatures used by the Taproot upgrade will also reduce the amount of data needed for multi-signature transactions, which are more complicated to process than standard ones. And with lesser data involved, transactions will become more time-efficient, thereby making the transactions cost-efficient.

Although Taproot’s upgrade has accelerated Bitcoin’s progress, it still falls short of smart contracts functionality common to Ethereum, Cardano, and Solana, which have many built-in functions and mechanisms to deal with ‘just in case scenarios.

 

Breathing new life into Bitcoin

Some may question the value of the Taproot upgrade regarding these programming enhancements as little more than a coding ‘catch-up’ by the Bitcoin developer community.

However, a more balanced view is to regard this as “an overwhelmingly positive upgrade to the Bitcoin protocol, but it is not itself enough for investors to get excited.” This is echoed by Anndy Lian, intergovernmental blockchain expert, and Chairman, Asia at BigONE exchange: “Bitcoin Taproot is indeed promising to tech guys like me. But investors’ enthusiasm over the upgrade seems to be neutral as reflected by the price. I am sure over time, everyone can see its impact clearer.” The key to this thesis is that the idea that Bitcoin as a smart contract blockchain is over-exaggerated. What positives there are related to the fact that the upgrade has been accomplished without any technical mishap, and through a successful community consensus process that bodes well for the future. It also lays the foundations for valuable use cases in the future, for example in the growth of payments rails for the metaverse.

 

Original Source: https://hackernoon.com/bitcoins-taproot-upgrade-a-cautious-step-in-the-right-direction

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 “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”.

j j j

WFMJ: “Build the business step by step, and not think you are bitcoin” – Anndy Lian, Inter-governmental Blockchain Advisor shared at the World Blockchain Summit Busan 2020

WFMJ: “Build the business step by step, and not think you are bitcoin” – Anndy Lian, Inter-governmental Blockchain Advisor shared at the World Blockchain Summit Busan 2020

Anndy Lian spoke at a panel titled “The Future cannot be regulated” at the World Blockchain Summit Busan 2020. The event has brought international technology experts to Busan, South Korea, to discuss the future of blockchain.

“Innovation is the guarantor of future prosperity and not regulation. In order for us to have a brighter future, we need to be innovative now to set a good foundation, and regulations can set in later to standardize. This is how typically sandbox models work, we trial and error, and if the results are good and acceptable, they graduate from the sandbox regime. Singapore’s MAS did a good job for blockchain-driven project, and I believe Busan as the regulatory free zone can take reference from what was done and make it better,” Anndy Lian commented.

Andrew Faridani, member of the Forbes Business Development Council agreed with the points and added: “The companies best positioned to be able to help the authorities make responsible regulations are those companies in industries that have the power to generate the most customers. The leading industry may be the gaming industry, because of its potential to recruit end-users at a rapid rate is probably the biggest out of any of the industries involved right now in blockchain. Responsible leading companies such as Gaimin, have the ability to be the forerunners of this movement.”

Former South Korea Minister of Environment Lee Maanee and keynote speaker at the event also explained further, “Busan has designated the blockchain special zone and laid the foundation for the public and private sectors to become the leading model of the Fourth Industrial Revolution.”

“There are many discussions today from DeFI to Ethereum Killer. Like I have mentioned on the stage, we are all supporters of blockchain technology. Highly likely, if you have invested in Bitcoin, you could have made some money but if you are a hardcore blockchain company, you could have lost money. I did not have time to elaborate on the stage on this. Blockchain companies must be realistic and build the business step by step, commercialise their products properly, and not think that they are “bitcoin”. Think in this manner, and the future will be a better one.” Anndy Lian, who is also an Inter-governmental advisor at Asian Productivity Organisation added.

The World Blockchain Summit Busan 2020 was held in Busan, South Korea on 20th February 2020, jointly organised by Blockchain MARVELS and Busan Economic Promotion Agency, and hosted by the Korea CEO Summit, Busan, BNK Financial Group, Korea Blockchain Industry Promotion Association, Korea Blockchain Startup Association, Korea Blockchain Association, Global Fintech Industry Promotion Center, Chungbuk Blockchain and Korea e-Sports Industry Association.

Blockchain experts from Maker DAO, Conflux, Gaimin.io, Quarkchain were present at the event to lend their support and find out more about the Busan Economic Zone. Park Ki-sik, chairman of Busan Economic Promotion Agency, Chairman Kim Hyung-jin of Sejong Telecom, Former Constitutional Judge Ahn Chang, and Han In-suk, Honorary President of the University of Utah Asia and many others were present at the event to lend their support.

Park Bong-gyu, Chairman of the Korea CIO Summit and World Blockchain Summit has been a key driver of this CEO community in South Korea for the past 16 years. Members include Samsung Group, LG Group, SK Group, Lotte Group, CJ Group, Panasonic Korea, BMW Korea, IBM, Genesis BBQ Group, McKinsey, etc.

For more information on the summit, go to https://wbsmarvels.com/

About Anndy Lian (www.anndy.com)

Anndy Lian is an all-rounded business strategist with more than 15 years of experience in Asia. He has provided advisory across a variety of industries for local, international and public listed companies.

He currently plays a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organisation committed to improving productivity in the Asia-Pacific region. He advises the Secretariat on the latest concepts and applications of blockchain technologies in cybersecurity and IoT network data integrity across smart factories and upskill the Secretariat staff in blockchain technologies as applicable to productivity. APO members include Bangladesh, Cambodia, Republic of China, Fiji, Hong Kong, India, Indonesia, Islamic Republic of Iran, Japan, Republic of Korea, Lao PDR, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, and Vietnam.

Anndy is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, helping the province to grow using blockchain technologies. South Korea. He wrote a book titled “Blockchain Revolution 2030” and is published by Kyobo, the largest bookstore chain in South Korea.

Original Source: https://blockcast.cc/press-releases/world-blockchain-summit-busan-2020-anndy-lian-author-of-blockchain-revolution-2030-build-the-business-step-by-step-and-not-think-you-are-bitcoin/

WFMJ: https://www.wfmj.com/story/41825581/build-the-business-step-by-step-and-not-think-you-are-bitcoin-anndy-lian-inter-governmental-blockchain-advisor-shared-at-the-world-blockchain-summit

 

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 “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”.

j j j