Tax on virtual digital assets a concern for NFTs; impact may be short term: Experts

Tax on virtual digital assets a concern for NFTs; impact may be short term: Experts

A slowdown in cryptocurrency trading may have an impact on NFT transactions as well, although it could be a temporary phenomenon as investors await more clarity from the government.

The 30 percent tax on income from the transfer of virtual digital assets (VDAs) that came into effect from April 1 is a cause of concern not only for cryptocurrencies, which have seen a drop in trading volumes, but also for non-fungible tokens (NFTs) that gathered steam in India in the past year with the entry of sports and Bollywood celebrities.

“The immediate scenario is bleak for crypto and even bleaker for NFTs in India,” Raj Kapoor, strategic advisor at Acryptoverse, a crypto-marketing firm, told Moneycontrol. “NFTs in India will face a fallout with only unique models surviving. NFT creators here are popping up daily while collectors remain non-existent.”

Anndy Lian, Chairman, BigONE Exchange, a crypto trading platform, said the tax on VDAs in India will impact NFT sales.

“The overall market condition is not favourable. NFT sales will drop further and only the better assets will have a place in the crypto-verse,” he said.

He added that NFTs that are more speculative in nature and driven by profit will suffer hard when it comes to tax.

Vinu Peter Immanuel, a partner at Link Legal who tracks NFTs, said that with average trading volumes on top cryptocurrency exchanges dropping 80 to 90 percent from a few months ago, the impact will also be seen on NFTs.

“Since NFTs are traded mostly by using cryptocurrencies, any slowdown in cryptocurrency trading may have an impact on NFT transactions as well. Although it could be a temporary phenomenon where cryptocurrency investors have taken a step back and are waiting for more clarity from the government,” he said.

Short-term impact

However, Hitesh Malviya, founder of IBC (It’s Blockchain) DAO (decentralised autonomous organisation) said NFTs in India are not even a $10 million market in terms of daily sales.

“We have got limited traction here if we compare it to the west. In the US, marketplaces are doing over a billion dollar sales volume every month. Since it’s a limited market, I don’t see many people have got affected as we have less than 1 lakh Indians who have bought any NFTs,” Immanuel said.

Siddharth Jaiswal, founder of Sportzchain, said the new taxation policy will have a short-term impact on NFTs.

“For all of us, this is the first year for the cryptocurrency and NFT tax framework. For many, 30 percent may seem a lot, but if you see the kind of exponential returns, 30 percent may seem less. There have been exponential gains as well, to the tune of 300 to 500 percent, so 30 percent (tax) seems less. However, the same is subjective,” he said.

Malviya noted that while it’s a tough law for short-term traders as they will be required to pay 1 percent on each NFT trade, it would be fine for a long-term value investor like him.

“I don’t mind paying 30 percent tax on my crypto or NFT assets,” he said.

The government said a 1 percent tax would be deducted at source on the transfer of VDAs starting July 1.

“The TDS (tax deducted at source) on its own is causing major havoc for crypto exchanges because the high-volume daily traders have disappeared and these are the guys that provide liquidity to the exchanges. But this impact has so far just appeared on cryptocurrencies,” said Pratik Gauri, founder of 5ire. “Still, I think it’ll become more widespread and show up on all VDAs, precisely because the tax has some mandates, like not being able to write off losses from one deal into another that will have a significant impact on the trading on VDAs, be it cryptos, NFTs, or other VDAs.”

Positive outlook

While Lian and Jaiswal said the tax will have an effect on NFTs, they also believe the outlook for digital collectibles is positive.

“Utility-based NFTs should expect an increase. This increase would be in favour for the India market as they will help the industry to hit a new level of adoption,” said Lian.

He expects India to triple its NFT sales in the next year.

Sportzchain’s Jaiswal noted that NFT marketplaces are coming up with new strategies to smoothen the entire buying process, with less reliance on cryptocurrencies as the medium for buying these NFTs.

“For example, NFT marketplaces in India have introduced UPI as one of the payment modes to buy these NFTs. So a drop in the trading volumes will not adversely impact the market for NFTs,” he said.

Unified Payments Interface (UPI) is a real-time payment system that facilitates instant transfer of funds between bank accounts.

Acryptoverse’s Kapoor said NFT stakeholders should really look at India’s gaming sector for a strong product market fit with NFTs as this sector has exploded in the past year, recording 170 percent growth. Jaiswal also anticipates NFTs on game merchandise to see an upswing.

“Additionally, with metaverse applications also gaining momentum, the uptake of NFTs will only increase in the future,” he said.

However, Malviya said that in India, fan collectible NFTs are emerging with entertainment companies and actors launching digital assets to promote their movies or brands.

“While NFTs will be used as an emerging tool of branding by many lifestyle and entertainment firms, such NFTs will not value over time. These are hype-driven assets that might never get any value in the secondary markets,” he said.

 

Original Source: https://www.moneycontrol.com/news/trends/tax-on-virtual-digital-assets-a-concern-for-nfts-impact-may-be-short-term-experts-8378261.html

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”.

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Look to the Long Term To Prosper in the Crypto Sector, Says BigONE Exchange’s Anndy Lian

Look to the Long Term To Prosper in the Crypto Sector, Says BigONE Exchange’s Anndy Lian

Speaking on the panel ‘Why are crypto exchanges still flourishing?’ at Crypto Expo Dubai on March 16, 2022, the Chairman of BigONE Exchange Anndy Lian and council member to Kishu Inu said he firmly believed in the sector’s long term prospects.

“All the good actors we have to understand why we’re here; is it because there is a chance to earn more money, a chance to earn a few million dollars on exit? That’s not true, people at Binance or FTX are all looking at the long term investment in infrastructure, including investing in licenses, and most importantly investing in people, not just their own staff but also their community,” said Lian. “Is it better for an exchange to be located in Seychelles versus Singapore or South Korea? It becomes a choice where you want to be regulated, where your community is,” he added.

Clearly, the crypto exchange industry is at a crossroads, with the sanctions against Russia together with incoming crypto regulation led by the US likely to lead to a significant change in how exchanges operate.

Until now exchanges outside the US which have largely ignored regulation have been at an advantage, allowing them to win as they benefited from lower overheads and restrictions. But as financial regulation starts to bite, this liberal regime that allowed global players like Binance to thrive is no longer the case. It was reported in December 2021 that Binance, the world’s largest cryptocurrency exchange with a daily turnover of US$76 billion, withdrew its application to start a cryptocurrency exchange in Singapore.

In the US the SEC amended rules published in January which expand its oversight to securities traded outside its supervision means that decentralized exchanges such as Uniswap, which traded more than $70bn in volume in January, could also be affected. US President Biden’s new executive order, directing agencies to work out a comprehensive approach to cryptocurrencies bodes well for the sector, but regulatory implementation will be key.

“In conclusion, I think there’s still a lot of good money out there to be made. It’s not just about Binance or FTX, if you in your jurisdiction do well, and create your own community and be truthful in your operations, whether a meme coin or layer 2, then there is sufficient money in the market, there are sufficient exchanges to be listed on for you to prosper; but overall, it’s going to be a long term process,” Lian remarked.

At this panel discussion, we are joined by Osama Bari (CTO, Difx), Peter Sumer (CEO, Bitmarkets), Mohammad Khalifa (CEO, Garantex), Shantnoo Saxsena (COO, Lbank) and Anndy Lian (Chairman, Bigone & Council Member, Kishu Inu Foundation) and moderated by Uptin Saiidi. Crypto Expo Dubai is the premier event for cryptocurrency investors, project developers and industry leaders to network, share innovation and create business relationships in the world’s fastest-growing financial country.

About BigONE Exchange

BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.

About Crypto Expo Dubai 2022

Crypto Expo Dubai is the premier event for cryptocurrency investors, project developers and industry leaders to network, share innovation and create business relationships in the world’s fastest-growing financial country.

 

Original Source: https://www.digitaljournal.com/pr/look-to-the-long-term-to-prosper-in-the-crypto-sector-says-bigone-exchanges-anndy-lian

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”.

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Thanks Koin Bülteni for taking my comments on short term Bitcoin trends “May See a Decrease in Price.”

Thanks Koin Bülteni for taking my comments on short term Bitcoin trends “May See a Decrease in Price.”

Thanks İlkyaz Taşdemir, editor of Koin Bülteni for taking in my comments on my observations for Bitcoin.

Quoted from the article:

“Anndy Lian , who works in the field of blockchain , is also one of those waiting for dump. Lian explained that Bitcoin whales are transferring money to various exchanges, so a dump scenario can be seen in the short term. However, he said that the BTC price could go down as well.”

 

Original article in Turkish:

Ki Young: Bitcoin Balinaları Harekete Geçti, Dump Gelebilir

CryptoQuant CEO’su, Bitcoin balinalarının harekete geçtiğini söyledi ve yakında dump gelebilme ihtimaline karşı yatırımcıları uyardı. CEO’ya göre dump, kısa vadede gerçekleşebilir.

CryptoQuant CEO’su Ki Young Ju, yeni Bitcoin yorumuyla yatırımcıları dump konusunda uyardı. Tavsiye dışı olarak analizlerini aktaran CEO, Bitcoin balinalarının borsalara yüklü miktarda para aktardığını gösterdi. Paylaştığı grafikteki kırmızı danger zone‘a dikkat çeken Ki Young, kısa vadede dump geleceğine inandığını belirtti.

“All Exchanges Inflow Mean (144-block MA / Tüm borsalara yapılan giriş akışının ortalaması) 2 BTC’yi geçti. Sanırım tehlikeli bir bölgedeyiz. Balinalar borsalarda aktif olduğunda fiyat muhtemelen yatay seyredecek veya düşecektir.”

26 Kasım tarihinde de All Exchanges Inflow Mean’i (144-block MA) paylaşarak düzeltme beklediğini söyleyen CEO, şunları söylemişti:

“Bitcoin’e daha fazla düzeltme gelebilir. All Exchanges Inflow Mean hala yüksek. BTC, Aralık ayına kadar 20 bin doları kıracaktır.”

Balinalar altcoin alıyor olabilir mi?
Bitcoin maksimalisti ve melek yatırımcı WhalePanda, Ki Young’un açıklamasına farklı bir bakış açısı getirdi. WhalePanda, balinalar için “Belki de altcoin alıyorlardır.” yorumunda bulundu.

John Cho isimli bir kullanıcı da WhalePanda gibi altcoin konusuna değinerek bir yorum getirdi. Cho, balinaların altcoinlere yönelmiş olabileceğini öne sürerek “Sanırım altcoinlerde satış yapmak istiyorlar.” dedi.

Blockchain alanında çalışmaları bulunan Anndy Lian da dump bekleyenlerden. Lian, Bitcoin balinalarının çeşitli borsalara para transfer ettiğini, bu nedenle kısa vadede bir dump senaryosu görülebileceğini açıkladı. Bununla birlikte, BTC fiyatının da düşüşe geçebileceğini söyledi.

 

 

Translated from Turkish into English:

Ki Young: Bitcoin Whales Take Action, Dump May Come

The CryptoQuant CEO said Bitcoin whales are on the move and warned investors of the possibility of a dump soon . According to the CEO, dump can happen in the short term.

CryptoQuant CEO Ki Young Ju has warned investors of dumping with his new Bitcoin comment . Transferring his analysis without advice, the CEO showed that Bitcoin whales are transferring large amounts of money to the stock markets. Drawing attention to the red danger zone in the graphic he shared , Ki Young stated that he believes dump will come in the short term.

“ All Exchanges Inflow Mean (144-block MA / Average of inflow to all exchanges) exceeded 2 BTC. I think we are in a dangerous area. When the whales are active on the stock market, the price will likely go sideways or drop.

Stating that he is waiting for a correction by sharing All Exchanges Inflow Mean (144-block MA) on November 26, the CEO said:

“More corrections may come to Bitcoin. All Exchanges Inflow Mean is still high. BTC will break $ 20,000 by December. ”

Could whales be buying altcoins?
Bitcoin maximalist and angel investor WhalePanda brought a different perspective to Ki Young’s statement. WhalePanda says for the whales, “ Maybe they are buying altcoins. He commented .

A user named John Cho also made a comment by mentioning the subject of altcoin like WhalePanda. “ I think they want to sell in altcoins, ” Cho said, suggesting that the whales may have turned to altcoins. ” He said .

Anndy Lian , who works in the field of blockchain , is also one of those waiting for dump. Lian explained that Bitcoin whales are transferring money to various exchanges, so a dump scenario can be seen in the short term. However, he said that the BTC price could go down as well.

 

Screen capture:

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”.

j j j