Indian crypto holders face 70% tax penalty on undisclosed gains

Indian crypto holders face 70% tax penalty on undisclosed gains

Cryptocurrency traders in India may face significant tax penalties on previously undisclosed profits under new amendments to the country’s tax laws.

Cryptocurrencies will be included under Section 158B of the Income Tax Act, which reports undisclosed income, according to Indian Finance Minister Nirmala Sitharaman’s Union Budget 2025 announcement.

The amendment allows cryptocurrency gains to be subject to block assessments if not reported, placing them under the same tax treatment as traditional assets like money, jewelry and bullion.

Crypto will fall under the definition of Virtual Digital Assets (VDAs), according to the new amendment, which states:

“Crypto asset has been defined in section 2(47A) of the Act under the existing definition of Virtual Digital Asset[…] A reporting entity, as may be prescribed under section 285BAA of the Act, will be required to furnish information of crypto asset.”

The new crypto tax proposition will be retrospectively applicable from Feb. 1, 2025.

At the end of December 2024, India’s Minister of State for Finance, Pankaj Chaudhary, said the government had found 824 crore Indian rupees ($97 million) in unpaid goods and service taxes (GST) by several crypto exchanges.

The report came a few months after Indian law enforcement agencies demanded 722 crore Indian rupees ($85 million) in unpaid taxes from Binance in August.

Crypto traders face up to 70% tax penalty on undisclosed crypto gains

As a sign of concern for cryptocurrency holders, Indian authorities may issue a tax penalty of up to 70% on previously undisclosed crypto profits.

This penalty may apply to crypto gains that remained undisclosed for up to 48 months after the relevant tax assessment year, according to the document, that wrote:

“70% of the aggregate of tax and interest payable on additional income disclosed in the updated income tax return [ITR].”

The amendments come two weeks after Bybit exchange suspended its services in India on Jan. 10, citing regulatory pressure as it continues to pursue a full operational license from India’s Financial Intelligence Unit.

Crypto tax laws are gaining prominence worldwide

Crypto tax laws gained increased interest worldwide in June 2024 after the US Internal Revenue Service (IRS) issued a new crypto regulation, which will make US crypto transactions subject to third-party tax reporting requirements for the first time.

Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies.

This decision could push crypto investors to decentralized platforms in a “paradoxical situation” that could make tax revenue harder to track, Anndy Lian, author and intergovernmental blockchain expert, told Cointelegraph.

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

 

Source: https://cointelegraph.com/news/indian-crypto-holders-face-70-tax-penalty-undisclosed-gains

Indian crypto holders face 70% tax penalty on undisclosed gains

j j j

Elon Musk’s father targets $200M with new memecoin

Elon Musk’s father targets $200M with new memecoin

Errol Musk, the father of entrepreneur Elon Musk, revealed his intentions to enter the memecoin market, hoping to raise $200 million to support the Musk Institute, a for-profit think tank. His memecoin, dubbed Musk It (MUSKIT), quietly debuted on December 12, 2024, through a Middle Eastern cryptocurrency company but has since struggled to gain momentum.

The launch of MUSKIT comes on the heels of a resurgence in retail investor interest in celebrity-associated memecoins. This trend was recently highlighted by the introduction of the Official Trump (TRUMP) memecoin on January 18 and the Official Melania (MELANIA) token on January 19, both on the Solana network. These tokens have sparked renewed enthusiasm for memecoins among retail investors.

However, the Musk It token has not experienced similar success, with its value plummeting by over 52% since its launch. As of this morning, the token’s price stood at $0.02, with a market capitalization of $25 million, according to data from CoinMarketCap.

Errol Musk has made it clear that his son, Elon Musk, is not involved with the Musk It memecoin project. Despite the family name’s influence, the absence of Elon Musk’s direct support could limit the token’s potential for success. Anndy Lian, an author and intergovernmental blockchain expert, expressed skepticism regarding the memecoin’s prospects, suggesting that Elon Musk’s personal endorsement is a key driver for excitement in such projects.

The broader memecoin market remains a speculative space, with investors often attracted to the possibility of high returns. Memecoins are sometimes described as “lottery tickets of the digital world,” offering the chance of significant gains but also carrying the risk of substantial losses due to their inherent lack of utility.

While the Musk It token faces challenges, the memecoin market has seen instances of remarkable trading success. For example, one trader turned a $27 investment into $52 million during the Pepe memecoin rally, holding the investment for over 600 days. In another instance, a trader achieved a staggering 1,500-fold return on investment in just 10 hours with the Hyperfy (HYPER) metaverse token, turning $2,000 into $3.2 million on January 6.

 

Source: https://www.investing.com/news/cryptocurrency-news/elon-musks-father-targets-200m-with-new-memecoin-93CH-3841862

j j j

Trump’s CBDC ban to boost crypto adoption, Musk’s dad plans $200M memecoin raise: Finance Redefined

Trump’s CBDC ban to boost crypto adoption, Musk’s dad plans $200M memecoin raise: Finance Redefined

US President Donald Trump’s latest executive order may bolster institutional cryptocurrency adoption, as his ban on central bank digital currencies (CBDCs) signals a “bet” on the existing crypto ecosystem, industry watchers told Cointelegraph.

Capitalizing on the recent success of the Trump family’s memecoins, Elon Musk’s father seeks to raise up to $200 million from a meme token already launched at the end of December.

Trump’s executive order a “game-changer” for institutional crypto adoption

Trump’s executive order banning the creation of central bank digital currencies (CBDCs) in the United States may mark a significant shift in institutional cryptocurrency adoption, according to industry executives.

The executive order, signed Jan. 23, prohibits the establishment, issuance, circulation or use of CBDCs, citing concerns over their potential to threaten financial system stability, individual privacy and national sovereignty.

The executive order’s CBDC ban is a “game-changer” for the crypto industry in the US, according to Anndy Lian, an author and intergovernmental blockchain adviser.

Likewise, Trump’s new crypto task force signals a clearer, “more structured” crypto regulatory landscape, Lian told Cointelegraph.

Elon Musk’s dad plans $200M raise with “Musk It” memecoin

Elon Musk’s father may be the next influential figure to raise funds through a memecoin amid growing interest in celebrity-backed meme tokens.

Retail investor interest returned to memecoins after President Donald Trump launched the Official Trump (TRUMP) memecoin on Jan. 18, followed by the Official Melania (MELANIA) token on Jan. 19 on the Solana network.

Joining the ranks, Elon Musk’s father, Errol Musk, is reportedly looking to launch his own memecoin token project called Musk It (MUSKIT).

Musk’s father hopes to raise as much as $200 million from the memecoin project, which he plans to use to support a for-profit think tank called the Musk Institute, he told Fortune.

Crypto mobile wallets hit 36M record high amid growing retail adoption

Mobile cryptocurrency users have reached a new all-time high, as Increasingly more passive cryptocurrency holders are turning into active users, showcasing growing mainstream adoption.

Mobile cryptocurrency wallets reached a new all-time high of over 36 million in the fourth quarter of 2024, according to Coinbase’s quarterly crypto market report published on Jan. 29.

“Mobile wallets can play a critical role in turning passive crypto owners into active crypto users,” wrote Daren Matsuoka, data scientist at a16z Crypto.

While crypto owners only hold digital assets passively, they are considered cryptocurrency users after actively interacting with decentralized finance (DeFi) or other blockchain-based applications.

Crypto hacks drop 44% YoY in January, CeFi top target with $69M loss

Cryptocurrency hackers continue stealing user funds, but cybertheft in January was less than in the year-earlier period, flashing a positive sign for the crypto industry.

Crypto hackers stole over $73 million of digital assets across 19 incidents in January, marking a 44% decrease from $133 million in January 2024.

Still, January’s $73 million was a ninefold month-over-month increase from December, when hackers only stole $3.8 million worth of cryptocurrency, according to a Jan. 30 Immunefi report shared with Cointelegraph.

The attack on Singapore-based crypto exchange Phemex was the biggest hit, accounting for over $69 million worth of stolen value, while the $2.5 million hack on Moby Trade options platform was second.

Ethereum price may stick below $3.5K until these 3 things happen

Ether price fell below $3,500 on Jan. 7 and has since struggled to trade above that level. The altcoin has declined by 8% over the past 30 days, while the broader cryptocurrency market capitalization increased by 6%. This underperformance is concerning for Ether investors, especially with the launch of the spot Ethereum exchange-traded fund (ETF) in July 2024.

Traders’ disappointment comes after a period of average Ethereum transaction fees exceeding $2, steady growth in the ETH supply, significant criticism regarding the lack of support from the Ethereum Foundation and memecoin trading shifting to competitor blockchains, particularly Solana.

Three factors could potentially push Ether above $3,500, although some depend on external elements such as regulatory changes.

These include Ethereum’s upcoming Pectra upgrade in the first quarter of 2025, proposed changes in United States ETF regulations and the continued growth of Ethereum layer-2 solutions.

DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The Pudgy Penguins (PENGU) token was the week’s biggest loser in the top 100, falling over 44%, followed by Solana-based memecoin Fartcoin (FARTCOIN), down nearly 30% on the weekly chart.

 

Source: https://cointelegraph.com/news/trump-cbdc-ban-boost-crypto-adoption-musk-dad-200-m-memecoin-raise-finance-redefined

j j j