Cryptocurrency Update: Bitcoin on Friday, March 26, rose slightly amid volatile markets as the Russia Ukraine tensions continued for over a month. The world’s largest cryptocurrency by market value went up by 1.03 per cent in the last 24 hours to $44,410.31 at the time of writing this article, according to global crypto tracking website CoinMarketCap. It must be noted that Bitcoin gained over 6 per cent in the last seven days.
Ether, the second most popular cryptocurrency fell 0.85 per cent in a day to hit $3,105.37, according to CoinMarketCap. On a weekly basis, Ether gained over 5.40 per cent.
Back in India, the Lok Sabha during the Budget session on Thursday passed the Finance Bill, 2022, which proposed to tax virtual digital assets, or cryptocurrencies. The new rules are set to be in force from April 1. As per the amendments to the Finance Bill, 2022, the finance ministry proposes to remove the word ‘other’ from section relating to set off of losses from gains in virtual digital assets.
This would mean that loss from the transfer of virtual digital assets (VDA) will not be allowed to be set off against the income arising from the transfer of another VDA. The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 per cent I-T plus cess and surcharges, will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions. Also, while computing the income from transfer of VDA, no deduction in respect of any expenditure (other than the cost of acquisition) or allowance will be allowed.
“The proposed 30 per cent tax irrespective of whether crypto-assets are capital assets or not will be detrimental to the investor growth that the industry has been seeing so far. This move will make day-traders incapable of saving on taxes even if they aren’t in the income tax brackets currently. Furthermore, not allowing investors to offset losses from one crypto trading pair by gains from another type will further deter crypto participation and throttle the industry growth,” said WazirX founder and CEO Nischal Shetty.
Here are the top 10 cryptocurrencies and their prices on March 18, 2022 (data from coinmarketcap.com at the time of publishing this article)
Bitcoin $44,410.31 or 1.03 per cent gain in the last 24 hours
Ethereum $3,105.37 or 0.85 per cent loss in the last 24 hours
Tether $1.00 or 0.01 per cent loss in the last 24 hours
BNB $410.39 or 1.00 per cent loss in the last 24 hours
USD Coin $0.9999 or 0.01 per cent gain in the last 24 hours
XRP $0.8261 or 1.73 per cent loss in the last 24 hours
Cardano $1.11 or 4.67 per cent gain in the last 24 hours
Solana $98.86 or 4.64 per cent loss in the last 24 hours
Terra $89.57 or 4.18 per cent loss in the last 24 hours
Avalanche $83.73 or 3.31 per cent loss in the last 24 hours