How Will It Affect India’s Cryptocurrency Ecosystem?

The Internet and Mobile Association of India (IAMAI) on Thursday announced the dissolution of the Blockchain and Crypto Council (BACC).

The sole representative of the crypto industry in India, BACC was instituted in 2017. However, amid a turbulent and uncertain crypto regulatory environment in India, IAMAI is redirecting BACC’s resources to its remaining 16 sectors.

“The association was forced to take the decision in light of the fact that a resolution of the regulatory environment for the industry is still uncertain, and that the association would like to utilize its limited resources for other emerging digital sectors, which make a more immediate and direct contribution to digital India, notably, deepening financial inclusion and promoting Central Bank issued Digital Currency [CBDC]”, its official statement read.

The Reserve Bank of India (RBI) is also reiterating its long-standing view on crypto being a “clear danger”.

How will the absence of a common voice at such a precarious time reflect on the Indian crypto ecosystem?


Globally, crypto markets are weathering serious stress. At the start of 2022, the global crypto market cap was a healthy $2.2 trillion. Seven months into the year, this has been reduced to $938 billion. Inflows in crypto investment products are getting scarce. For instance, last week saw just $64 million worth of influx. Major crypto players such as 3AC and Celsius are folding up, only boosting the crypto contagion. The reigning investor sentiment is one of extreme fear.

Crypto trading in India, too, is increasingly becoming a loss-making proposition.

The unfavorable taxation situation in India isn’t helping. A straight 30% tax on all profits incurred from crypto transactions, in addition to 1% TDS effective July 1, 2022, has already seen exchange trading volumes tank as much as 70-80%.

Several media reports cited emerging discontentment between IAMA officials and BACC member exchanges on non-compliance grounds. As per the association, member exchanges regularly backtracked and violated their self-decided code of conduct. In simple words, they did not walk the talk. They were also unwilling to submit to independent audits.


Vikram Subburaj, CEO, of Giottus Crypto Platform, sees this move as part of its evolution, rather than government and industry hostility. “The IAMAI has quite a few verticals under its ambit, including BACC. The crypto sector, with its huge adoption, needs a dedicated industry body to put forth its demands and push for regulation. So, the BACC will hopefully evolve as a more function-specific industry body that would exclusively represent the crypto sector. This reorganization, as we understand, has nothing to do with the government.”

Dileep Seinberg, founder & CEO, MuffinPay, Bill Payment & Utility Crypto, is batting for an independent BACC. “The BACC can exist independently, if the members decide so. The Indian crypto sector is growing in size due to the mass adoption of digital assets and a dedicated industry body is the need of the hour. If seen on the other side, the BACC can now emerge as a stronger and more specific industry body with a clear set of goals. IAMAI is responsible for other major tech communities outside cryptocurrency. This move may provide the crypto business a better perspective in the long run.”

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Bitcoin, other crypto prices today gain; ether surges 7%, Uniswap rallies 15%

Cryptocurrencies rose for the second day as US tech stocks also posted an advance and investors got more clarity on the bankruptcy of a major digital-assets lender. Bitcoin price today was trading at $20,474, up more than a per cent. The world’s largest token has struggled since hitting a high near $69,000 in November and has been rangebound close to $20,000 for about a month.

The global cryptocurrency market cap today was below the $1 trillion mark, even as it was up more than 3% in the last 24 hours to $972 billion, as per CoinGecko.

“The crypto market has observed a slight correction alongside the US stocks. After bulls pushing the coin up, Bitcoin has bounced off the US$20,000 mark. If buyers can hold BTC at the current level, we might see it testing the US$21,000 level soon. The second largest cryptocurrency, Ethereum witnessed a rise of nearly 10% outperforming BTC after its Shadow Fork 9 went live in lead up to the merge on yesterday,” said Edul Patel, CEO and co-founder of Mudrex.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, rose more than 7% to $1,194. Meanwhile, dogecoin price today was trading nearly 2% higher at $0.06 whereas Shiba Inu rose marginally to $0.000010.

Other crypto prices’ today performance also improved as XRP, Solana, BNB, Litecoin, Stellar, Chainlink, Tron, Apecoin, Avalanche, Polkadot, Polygon, Uniswap (up as much as 15%), Tether prices were trading with gains over the last 24 hours.

Celsius Network listed a $1.19 billion deficit on its balance sheet in a bankruptcy court filing on Thursday, a day after the cryptocurrency lender filed for Chapter 11. New Jersey-based Celsius froze withdrawals last month, citing “extreme” market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market.

Another U.S. crypto lender, Voyager Digital Ltd, filed for bankruptcy this month after suspending withdrawals and deposits. Singapore’s Vauld, a smaller lender, also froze withdrawals this month. Cryptocurrency trading volumes have plummeted amid a dreadful first half of the year for the industry.

(With inputs from agencies)

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Cryptocurrency crash deepens: Bitcoin, Ether plunge further

The cryptocurrency sell off deepened on the weekend extending the concerns of the investors. Bitcoin breached the $20,000 level this week, touching an 18-month low. The slumps in prices this week came after one of the biggest crypto lenders Celsius Network froze withdrawals and transfers between accounts. The crash has also coincided with a declining stock market.

On Sunday morning, the market leader bitcoin stood at $18,951.70, down more than $3,000 in just five days. A month ago on May 19, bitcoin stood at $30,321.60, but is now down more than $11,000 from its value then.

The second largest cryptocurrency, ether slid down to $990.17 on Sunday morning, down over 217 percent in the last five days, losing a value of more than $200 in the time. In the last month since May 19, ether has shed more than half of its value, coming to below $1,000 from $2,017.57 a month ago.

On Saturday, bitcoin dropped over 13% at a point as it slid below 20,000. This is its lowest level in 18 months.

READ | How much more value could bitcoin lose in 2022? Here’s what analysts forecast

After Saturday’s sell-off, the global crypto market cap stood at $826.93 billion on Sunday morning with a 6.67% dip over the last day, data from CoinMarketCap showed.

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Want to invest in Cryptocurrency? Know the basics about Bitcoin, Ethereum and Cardano

If you are planning to invest in any cryptocurrency in June 2022, then know a little about Bitcoin, Ethereum, Cardano and more.

Have you invested in any cryptocurrency? Ideally, it should be a part of your asset allocation strategy as well as for diversifying risk. However, do not forget that it is one of the riskiest assets to invest in. As can be seen, it is running in huge loses and any entry should be carefully considered and experts should be consulted before doing anything. RBI has so far frowned on anything associated with crypto. So, in case you are planning to invest in any of the cryptocurrencies and are confused about which one you should pick then you can consider this. Before starting, you need to know what a cryptocurrency is. 

Cryptocurrency is a digital currency secured by cryptography and can be used as a form of payment. According to the Reserve Bank of India (RBI), the defining characteristics of cryptocurrencies are- they are decentralized systems where transactions are authenticated by participants themselves by consensus. They are anonymous and borderless that is, they work over the internet without any physical existence. That is where all the risk lies. Also Read: Apple AirPods Pro vs Sony WF-1000XM4 vs Sennheiser Momentum TWS 3: After Review, we pick our WINNER

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RBI further in the month of February 2022 informed that, until 5 years ago, total market capitalisation of all cryptocurrencies was only USD 20 billion (February 2017). This went up to USD 289 billion in February 2020 and thereafter exploded to reach a peak of USD 2.9 trillion in November 2021. As of February 09, 2022 it stands at USD 1.98 trillion. Bitcoin accounts for 42% of this market capitalisation, the top two cryptocurrencies account for 61% while the top five account for 71%. The total number of cryptocurrencies is at 17,436 and the total number of crypto exchanges is 458. Also Read: Apple WWDC 2022: What gifts will iOS 16 bring for the iPhone 12 and iPhone 12 users?

So for those who are interested in cryptocurrencies, here are the top 3 that have been making news for the right, or wrong, reasons recently.

1. Bitcoin: According to RBI, Bitcoin started more than a decade back in 2008. It is said to be the world’s largest and most popular cryptocurrency. Bitcoin reached its all-time high of USD 68,990 per token in November 2021, and has decreased subsequently in the past few months, according to a report by

2. Ethereum: After Bitcoin, Ethereum is the most popular cryptocurrency and is the second-largest cryptocurrency in the world. In the month of August 2022, developers will be launching Ethereum 2.0. Ethereum 2.0 will transform the proof-of-work protocol into a proof-of-stake protocol.

3. Cardano: Cardano (ADA) is a cryptocurrency which can be seen as a tough competition for Bitcoin and Ethereum. Cardano has increased the number of smart contracts based on its blockchain after updating its network in late 2021. It has also released other features like token creation.

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Christine Lagarde, President Of The European Central Bank, Says Cryptocurrencies Are “Based On Nothing”

Christine Lagarde, President Of The European Central Bank, Says Cryptocurrencies Are ?Based On Nothing?

European Central Bank’s President Christine Lagarde wants regulation of cryptocurrencies

Christine Lagarde, the President of the European Central Bank, stated that cryptocurrencies were “based on nothing” and should be regulated to prevent people from risking their life savings on them. Lagarde expressed her concern about those unaware of the risks, and might everything. She also encouraged governments all around the world to take steps to protect inexperienced investors who make significant bets on digital assets. Lagarde’s comments come at a time when the cryptocurrency markets are shaky, with major digital assets like Bitcoin and Ether dropping by more than 50 percent from their highs last year.

During an interview with Dutch chat show College Tour a few days ago, Lagarde said in her “very humble assessment” cryptocurrency was “worth nothing” and “based on nothing”. She added that there was no underlying asset to operate as an anchor of safety.

Lagarde’s lack of trust on cryptocurrencies isn’t new. She has previously expressed worries about digital currencies’ potential for money laundering and sanctions evasion, as well as their environmental impact.

During the chat show, when an audience member mentioned they lost 7,000 euros (approximately Rs 58,000) after purchasing the token Cardano, Lagarde said that it “hurts”.

Lagarde said that she didn’t own any cryptocurrencies because she wanted to practice what she preached. Having said that, she added that she followed the cryptocurrency market diligently because one of her sons had invested in the digital assets.

In reaction to the rapid expansion of digital currencies, several central banks, including the European Central Bank, are developing their own virtual alternatives to cash. According to Lagarde, a digital euro would be very different from private cryptocurrencies because it will have the backing of the central bank.

Lagarde said she doesn’t hold any crypto assets herself because “I want to practice what I preach.” But she follows them “very carefully” as one of her sons invested — against her advice. “He’s a free man,” she said.

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Battered DeFi investors put their hopes in Ethereum revamp: Here’s why

Decentralized-finance investors are betting on Ethereum’s revamp to help thaw out the market’s more than two-months-long crypto winter.

The DeFi sector, where investors earn yields by trading and staking cryptocurrencies without centralized intermediaries, has declined sharply following the collapse of the TerraUSD stablecoin, and as soaring inflation puts the Federal Reserve on a path of monetary tightening. The Ethereum “Merge,” one of the most significant technical upgrades to the blockchain since its inception in 2015, may be one of the few catalysts that could give DeFi a much-needed lift.

Despite multiple delays, core developers have made major progress and Ethereum co-founder Vitalik Buterin has said the upgrade is set to take place in August. The Merge will shift the Ethereum blockchain from a proof-of-work consensus mechanism, where miners use powerful computers to order and validate transactions for users, to proof-of-stake. The new mechanism replaces miners with Ether holders performing the same tasks.

The Merge will be the most important event in the crypto space this year by far, said Vance Spencer, co-founder of venture capital firm Framework Ventures. “If you think about how crypto markets usually move, the biggest event is usually halving, cutting supply of in half,” he said. “Here, we have the supply of Ethereum getting cut by 90% in one moment.”

From ‘Risk-off’ to ‘Risk-on’

Fewer new issuances of Ether, a smaller carbon footprint and higher yields are among the upgrade outcomes that DeFi investors say will fuel an Ethereum rally and boost the industry.

“Our DeFi fund has been risk-off the market all year and now for the first time we are risk-on because we have been accumulating Ether every single day,” said Wes Cowan, managing director of decentralized finance at crypto investment firm Valkyrie. “We continue to trade stablecoins such as USDC for more Ether in the fund.”

The transition will also eliminate tens of millions dollars of fees that are paid to Ether miners every day. “Ethereum miners have earned $42 million on average per day in 2022,” said Jaran Mellerud, mining analyst at Arcane Crypto.

Ether holders, who will become the blockchain validators after the upgrade, are also more likely to hold on to their Ether rewards and stake them for higher yields, as opposed to miners who tend to sell their mined Ether to cash out or cover operational costs, further reducing the supply of the currency.

“The expenses for a validator are a fraction of the expenses for a miner,” said Rex Hygate, founder of technical risk analysis company DeFiSafety. “Because the cost of operations is low, the amount of Ether they would issue to cover the cost is reduced.”

Staking rewards, which is what validators receive in return for putting their assets on the blockchain to secure the Ethereum network, will also be higher post-Merge, as core Ethereum developers plan to financially incentivize more staking participation, Hygate said.

Ethereum could also face less selling pressure compared to Bitcoin, especially if a slump in prices triggers another round of sell-offs among cash-strapped miners that have large holdings. Public mining companies such as Riot Blockchain started selling their mined coins for the first time earlier this year.

“If you are in the middle of the bear market and the Bitcoin miners are selling, meanwhile Ethereum just has no latent supply and instead just gives fees to users, Bitcoin will require a lot more inflows to maintain this position than Ethereum will,” said Spencer.

The Flip Side of The Coin

While the Merge is one of the most hotly anticipated events for crypto in 2022, the bullish sentiment around it is unlikely to spread to the broader market, where interest-rate hikes and a weak economic outlook have kept investors away from riskier asset classes.

A potential security threat to Ethereum’s beacon chain earlier this week could also push back the timing of the Merge. The chain, which is key to introducing the new proof-of-stake mechanism, underwent a blockchain reorganization on Wednesday. Ether plunged as much as 11% on Thursday before paring losses at around $1,843, well below its $2000 benchmark.

The glitch might have been due to a network failure such as a bug, or malicious attacks from miners with high resources, resulting in a duplicate version of the blockchain and heightened security risks.

“As this is yet to be confirmed, the impact on the timing of the Merge is still unknown,” said Marc-Thomas Arjoon, a research associate at CoinShares. “If it is an easy fix there may not be a delay, but if this issue uncovers something deeper then the Ethereum Foundation and developers will need to discuss further depending on the type of issue.”

Other technical glitches on Ethereum’s testnets could further delay the upgrade.

And once the Merge does take place, it could even create headwinds for other projects within the DeFi sector, including so-called layer 1 projects. The term layer 1 is typically used to describe a base layer blockchain network, such as Bitcoin, on top of which other applications are built.

“All these Ethereum-based projects are going to pick up so much steam,” said Hygate. “In our opinion, it is going to suck the air out of a lot of the other layer 1 markets.” For instance, some layer 1 projects like Solana and Cardano are often considered “Ethereum killers” as they provide alternative blockchain networks for traders on Ethereum.

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Top cryptocurrency prices today: Bitcoin, Ether, Cardano, Avalanche rise up to 14%

New Delhi: Major crypto tokens soared sharply following rate hike by the US Federal Reserve. The eased down aggression from Jerome Powell boosted morale in the digital crypto market.

Barring the dollar-pegged USD Coin, all major crypto tokens were boasting strong gains Thursday. Cardano and Avalanche rallied 14 per cent each, whereas Solana rose 10 per cent. Bitcoin and Ethereum were up by 5 per cent each.

The global cryptocurrency market cap was trading stronger at the $1.82 trillion mark, rising more than 5 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed about 40 per cent to $100.69 billion.

What’s cooking in India?
The latest word on the street is that India’s tax department could potentially raise taxes deducted at source (TDS) on interest earned by Indian residents on foreign platforms up to 20 per cent, said CoinDCX Research Team. “The TDS on crypto transactions is 1% as of date, to be implemented come 1st July,” it added. “While we welcome the additional clarity brought about by regulators into the space, we are also mindful of the impact excessive taxes on crypto investments could have on the flow of capital and growth of innovation in India.”

Global updates
ApeCoin (APE), the native token of the Bored Ape Yacht Club (BAYC) ecosystem, surged and then sank during the European trading session as Tesla founder Elon Musk put up a collage of Bored Apes as his Twitter profile picture.

Tron, the blockchain founded by entrepreneur Justin Sun in 2017 to compete with Ethereum, will release its algorithmic stablecoin called decentralized USD (USDD) on Thursday.

FIFA, soccer’s global governing body, locked in Algorand as an official blockchain partner before the World Cup competition that starts in November in Qatar.

Tech View by Giottus Crypto Exchange
The US Federal Reserve’s repo rate hike had capital markets spooked across the globe. Its impact on Bitcoin was debated, with some expecting a flight of capital towards Bitcoin given its reputation as an inflation hedge, while others predicted that prevailing sentiment would also impact Bitcoin negatively.

The former seems to have happened, with Bitcoin breaking up minutes after the rate hike to deliver a change in market structure over the 1-hour time frame and attaining its highest level in nearly a week.

Bitcoin’s attempts to break $40,000 have so far been thwarted, but the momentum seems strong. Altcoins have begun rallying as well, leading to a decrease in Bitcoin dominance that may even suggest a sustained rally is on the cards. Bitcoin will need to overcome a key resistance level at $40,800.

This is likely to be followed by a rally to $42,000 and beyond. However, should this turn out to be a bull trap, Bitcoin’s September low of $39,600 and the $38,500 level will act as support. Long-time frame closes below these levels will indicate a lack of confidence in Bitcoin and may suggest further downside.

Major levels
Support: $39,500, $38,700

Resistance: $40,800, $41,500, $42,000

(Views and recommendations given in this section are the analysts’ own and do not represent those of Please consult your financial adviser before taking any position in the asset/s mentioned.)

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cryptocurrency: How cryptocurrencies work (and how they don’t)

The first and most popular cryptocurrency, bitcoin, launched more than a decade ago. Yet for all the relentless buzz, relatively few are well versed in cryptocurrencies or the blockchain, the technology on which they’re built.

Despite the evangelizing by and rising profile of some investors, a 2021 poll by Pew Research Center found that just 16% of Americans said they have ever invested in cryptocurrencies. That broadened to 31% between the ages of 18 and 29 and to 43% of men in that age range.

If you’re not among those percentages, you might view these currencies with skepticism and may have avoided trying to understand the lingo or the technology.

But as cryptocurrencies and related technologies reach into politics, intertwine with the larger economy and impact the environment, everyone could use a sense of what they are, how they work and their pitfalls and potential.


It depends on usage. “Blockchain technology” is acceptable to refer to the computer code that records cryptocurrency transactions (and can be used for other things; stay with us). Standing alone, just call it the blockchain – even though there are actually multiple (don’t worry, we’ll explain below).


Blockchains record cryptocurrency transactions in encrypted, digital records that live on servers all around the world. Some blockchains allow developers to build in applications and program contracts.

Also of note: Different cryptocurrencies are built on different blockchains. Bitcoin is built on the, well, bitcoin blockchain; ether is built on the ethereum blockchain. There now are some cryptocurrencies or tokens that are essentially built on top of other cryptocurrencies – but at the most basic level, all cryptocurrencies refer back to a blockchain.

Blockchains also can be used to record other types of information – like property records or the origins of a food item.


Fundamentally, cryptocurrencies are digital money. The blockchain is a database for recording transactions of said digital money. This digital money isn’t backed by any government or institution.


Different cryptocurrencies have different digital architectures (code) so how they work varies. As an example, let’s use bitcoin, which is “mined.”

In the physical world, here’s how mining works: A specialized computer processor runs on electricity and produces an astonishing amount of noise and heat. In the digital world, that processor is competing to solve a mathematical puzzle. The computer that solves the puzzle first wins newly minted bitcoin. This design is part of the open source code created by the anonymous entity that launched bitcoin in 2009.

Mining has another purpose: In the course of solving the puzzle, the most recent bitcoin transactions – the sending and receiving of the currency – are recorded on the blockchain. The system design encourages participants to spend resources (in this case money and electricity) to help maintain the record of who owns which bitcoins.

Those with more computing power are more likely to win – so the design favors well-resourced groups that can put together a lot of these specialized computers and supply them with electricity as cheaply as possible.

As a kind of check, the system is also designed to increase the difficulty of solving the mathematical puzzle as more computers compete to do so. At the same time, the amount of bitcoin successful miners win decreases automatically at predetermined intervals. Together that means entities that got into mining quite early made out with more bitcoin in return for spending fewer resources.


An additional feature of the blockchain’s design is that the record of transactions is held on many computers that together form a global network. These computers – or nodes – constantly check with each other to confirm their records’ accuracy. The replication of these records across the network is part of what prevents an incorrect or fake transaction from being logged.

Together, the decentralized and open source nature of the blockchain means that no one and no institution can control it. But actors like governments and large corporations still can limit access in certain circumstances. China outlawed cryptocurrency trading in September 2021 because of concerns they could weaken control over the financial system and were facilitating crime. More recently, a major cryptocurrency exchange, Binance, stopped processing purchases made with certain credit cards issued in Russia over its invasion of Ukraine.


Cryptocurrency buffs consider it pretty hard to hack – that’s part of its appeal. Again though, it depends which platform you’re talking about.

The bitcoin blockchain has not been compromised to date, but the second-largest blockchain and cryptocurrency, ethereum, faced a major crisis in 2016 stemming from a software vulnerability. While the ethereum blockchain itself was not hacked, some $50 million in ether was stolen.

Many cryptocurrency-related services and technologies have been hacked or simply exploited by their designers to deceive and steal from participants.

Cryptocurrency exchanges – where people can trade cryptocurrencies for traditional currencies – have been compromised multiple times, with digital bank robbers clearing out the accounts. Memorably, in 2018, the CEO of a cryptocurrency exchange died without relaying a crucial passcode, effectively locking customers out of millions of dollars’ worth of cryptocurrencies.

Consumers have few recovery options, whether they’re a victim of a scam or security breach or have simply forgotten their digital wallet’s password. There is no password reset or insurance in the preprogrammed, decentralized system.

In short, the investments are backed by few protections. U.S. prosecutors do pursue outright criminal behavior, like false advertising or stealing, but if the value of a new cryptocurrency token plummets and does not recover, that money is lost. Even the value of bitcoin, which some proponents call “digital gold,” is extremely volatile.

A final thought: Cryptocurrencies remain criminals’ payment of choice. Illegal drugs or other barred commodities are often exchanged for cryptocurrency, which can be transferred across distances more easily than cash and can be harder for prosecutors to trace. But for most cryptocurrencies, the record of who owns what is publicly visible, forcing criminals to become savvier in order to effectively launder cryptocurrencies obtained through theft, scams or ransomware attacks.


This age-old question – who decides what a buck is worth? – is further complicated with cryptocurrencies. Unlike traditional currencies, no government, central bank or physical asset backs cryptocurrencies.

Their values are based on people’s faith in them, as determined by the market. Backers hope that more and more people will want a digital currency that is relatively free from government oversight – and that, as people sink resources into cryptocurrencies, their value will increase over time.

Also unlike traditional currencies, some cryptocurrencies function both as an investment and a potential unit of exchange. Some buy it hoping they can eventually sell it for a profit. Others might use a fraction of a bitcoin to, say, get a firecracker pork burrito at New Hampshire’s Taco Beyondo.

Cryptocurrency mining consumes a great deal of energy. One peer-reviewed study calculated that, as of November 2018, bitcoin’s annual electricity consumption was 45.8 terawatt hours, comparable to Hong Kong’s net electricity consumption in 2019, according to the U.S. Energy Information Administration.

That doesn’t even take into account energy consumed by other cryptocurrencies. And bitcoin’s energy consumption has increased annually: The Bitcoin Mining Council estimated the cryptocurrency consumed 220 terawatt hours of energy in 2021.

When judging the environmental impacts of cryptocurrencies, it’s important to consider the electricity’s source. Miners want electricity at the lowest cost, which sometimes leads them to polluting energy sources like coal. Other times, can they find the cheapest energy from renewable sources like hydroelectric dams. It really comes down to location. Those variables make it complicated to calculate cryptocurrencies’ exact energy consumption and environmental impacts.

Environmental impacts also include the energy used to cool computer processors, which heat up as they work, as well as the electronic waste produced as miners upgrade their equipment and discard older models or broken units.


For everyone’s sake, let’s keep this short. Nonfungible tokens are basically any digital item – like an image or video – that has been recorded on the blockchain to show who owns it.

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Trading In Cryptos? Exchanges Are Facing Payment Issues; Know What’s The Issue

Cryptocurrencies, such as Bitcoin, Ether, and Matic, became a hot topic in the country as they delivered huge profits in recent times. However, its hugely volatile nature and grey regulatory status have always kept the demand side, investors, on worry. Now, the supply side, or exchanges, are facing funding issues, which are adversely affecting trading in cryptocurrencies.

Recently, crypto exchange Coinbase halted rupee transfers to its trading app via UPI as the National Payments Corporation of India (NPCI) earlier said it was “not aware” of any crypto exchange using its payment network, according to an ET report.

“We are committed to working with NPCI and other relevant authorities to ensure we are aligned with local expectations and industry norms,” a Coinbase spokesperson said in a statement to Bloomberg.

Apart from Coinbase, four other crypto trading companies have either suspended rupee deposits or seen banks and payment gateways pull support for money transfers onto their platforms, said the ET report.

Tax on Cryptocurrencies

The Union Budget 2022 proposed a 30 per cent tax on profit made from the sale of all crypto assets, with a one per cent tax deducted at source on all such transactions. The new rules have become applicable from April 1. A new section 115BBH has been inserted in the Income Tax Act, 1961, to tax virtual digital assets. The rules also say that loss arising from digital asset cannot be carried forward to the next year.

In the absence of any law to regulate cryptocurrencies, the legal position of such assets is not clear as of now. After the Union Budget’s tax proposal on cryptocurrencies, investors said the provisions have effectively legalised crypto trading. However, Finance Minister Nirmala Sitharaman has said taxing cryptocurrencies does not mean it has been legalised. The matter is still being considered.

In Rajya Sabha also, the finance minister has said the Centre will decide on banning or not banning cryptocurrency later, but taxing transactions doesn’t legitimise it.

In February during a press conference, Sitharaman had said that the government and the Reserve Bank of India (RBI) are “on board” with respect to the treatment of cryptocurrencies and said that discussions are going on on the regulatory treatment of such digital virtual assets.

She had said: “We are all discussing prior to the Budget, discussion continues and we shall continue to have discussions. All the decisions which have been taken on it, obviously it has a very serious, it is a digital currency from the central bank of some description, so obviously with more focus having had consultations.”

Sitharaman has also said that the government will state its position on cryptocurrencies after completing the ongoing consultation process. In the past, the Reserve Bank of India has cautioned people against investing in cryptocurrencies.

In a reference to a speculative bubble that gripped the Netherlands in the 17th Century, RBI Governor Shanktikanta Das has said that these digital assets lack the underlying value of even a tulip.

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‘Nothing Grows as Fast as Cryptocurrency’: Kyrgyzstan Deputy of Parliament Bats for Crypto

Kyrgyzstan is opening discussions around cryptocurrencies. “Nothing grows as fast as cryptocurrency,” Karim Xanzheza, Deputy of the Parliament of Kyrgyzstan, recently said in a statement while batting in favour of cryptocurrencies. While urging lawmakers to club crypto services under a legal framework, Xanzheza said that Kyrgyzstan could really take advantage of the digital assets sector if timely measures are adopted. As per Britannica, Kyrgyzstan is a small country with a population of around 6.7 million and a GDP of around $8 billion (roughly Rs. 60,839 crore).

Slamming the central bank of Kyrgyzstan for avoiding the up-and-coming digital assets sector, Xanzheza said it is crucial for the country to begin work on a national digital currency, CryptoPotato reported.

The parliamentarian made his case citing the popularity of Bitcoin and Ether along with other cryptocurrencies that have only escalated of late in bigger nations.

Capable of facilitating instant transactions of large sums, cryptocurrencies are also seen as a threat that could challenge the positions of physical currencies.

In order to eradicate this fear, governments from around the world are exploring ‘CBDCs’ or central bank digital currencies. CBDCs are built similar to cryptocurrencies on blockchain technology, but they are controlled by the central banks.

Essentially, Xanzheza intends to have Kyrgyzstan join other nations that are looking to explore the crypto sector but within the limits of their laws.

The development comes after thousands of illegal crypto mining hubs were shut down in Kyrgyzstan last year. The country reportedly regulates crypto mining via taxes.

Many nations, are taking a regulatory approach towards the crypto sector in order to harness the power of blockchain-based payment systems.

The tax laws imposed by India on virtual digital assets, for instance, have gone into effect on Friday, April 1. India aims to bring crypto under its tax regime as part of its plans to keep an eye on crypto movement and curb potential risks of its misuse for illicit activities like money laundering and terror financing.

Vietnam, Australia, Dubai, and Brazil have also begun taking their first steps towards making the crypto sector adhere to their respective laws.

Remittance-depended nations such as Tonga and Nigeria have also shown interest in the crypto sector, in order to save the service fee that international money transfer platforms like Western Union slash away.

Using crypto assets to facilitate cross border money transfers would not empty the pockets of those nations that depend on their diaspora working abroad to send back money and keep their country’s economy alive and healthy.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

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