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This Week in Web3 is back to help you stay informed about the ever-evolving web3 world. We’ve got a surprise for all you web3 newbies and lurkers 🎉
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Returning to our regular programming, here’s what we have for you and Posty this week👇
Weekly Web3 Updates
No crypto tax relief in 2023 budget
The Binance-WazirX chaos
Jobs, Reads & Tote Bag Giveaway!
Estimated Reading Time: 5:00 minutes
Weekly Weather Report 🌤
Looks like the crypto clouds are not showing mercy! Better grab your umbrellas and waterproof crypto wallets, folks. Hang in there, Posty! 💪
Quick Web3 updates curated for you:
Toyota to experiment with blockchain use cases by sponsoring Astar Network's hackathon.
Decentralized social media project Nostr's Damus gets listed on Apple app store.
Binance terminates wallet services for WazirX, directs to withdraw all funds.
Indian Finance Minister will discuss about crypto regulations with in the G20 meeting with finance ministers and central bank managers in Bangalore.
Delhi govt. introduces blockchain in forensics.
No crypto tax relief with a side of jail time!
It looks like the Indian government is keeping its crypto tax rules on lock, and now with an added "ouch factor"!
TLDR: The government is maintaining its strict crypto tax policies and adding the possibility of a fine or even jail time for those who don't comply with TDS rules for virtual digital assets.
The silence and the surprise 🤫
Finance Minister Nirmala Sitharaman kept us on the edge of our seats with her silence on crypto during the 2023 budget announcement, but little did we know, the fine print had a surprise in store!
In 2022, the Indian government brought the hammer down with a 30% tax on profits and a 1% TDS on all crypto transactions. While the 1% TDS remains in place, there was no penalty for those who didn't follow the rules... until now.
Jail Time! 🚨
A fine and potential jail time (at least three months, up to seven years) for those who don't follow TDS rules for VDAs.
This penalty will be equivalent to the tax liability and could take effect on April 1st, 2023, if passed by Parliament.
Who’s taking the hit? 🥊
This change is expected to target retailers using foreign exchanges for crypto transactions.
Indian retailers who buy and sell crypto on foreign platforms using P2P methods are required to deduct TDS.
If they don’t, they could face a 100% penalty in addition to the TDS liability and a possible 3-84 month jail term.
But hey, this could also encourage retailers to return to local exchanges!
The hurt and the hope 👀
Well, the crypto industry's dreams of a tax cut were just that - dreams. 🥲 Despite the government keeping its tax policies on lock, some crypto companies in India are still hoping that the government will change its tune on crypto taxes in the future and create policies that support the ecosystem's growth. Fingers crossed 🤞
Till then, to keep the jailbirds at bay and avoid being fined, retailers better brush up on their TDS knowledge and follow the rules.
Did you like this week’s issue? Please let us know by tweeting about us; it’ll make our day & we might send you Spacekayak’s famous REKT tote bag as thanks! 👇👀
Crypto Chaos: The Binance-WazirX Feud 👀
Crypto World: Where possibilities are endless, and chaos lurks at every turn! Stay ahead of the game with our chaotic crypto updates.
Let’s spill some tea on the Binance-WazirX conflict that has been going on for months. Read the history of this feud here. And we’ll mention Zanmai Labs a lot here, so, for context, it is the entity operating WazirX.
What’s going on?
Binance is ceasing technical services for WazirX due to Zanmai's refusal to retract inaccurate statements regarding Binance's relationship with WazirX.
Zanmai asked to withdraw all money from WazirX accounts but has not fully removed assets from Binance wallets used for WazirX activities.
WazirX moving funds held with Binance to other wallets after Binance discontinues service.
Misrepresentation by Zanmai
Zanmai has misrepresented Binance's involvement and responsibility for running WazirX exchange.
Assets from WazirX were frozen in August 2020 during an investigation into possible violations of foreign currency regulations.
WazirX Adopts Proof of Reserve Strategy
WazirX announces adopting proof of reserve strategy and claims to surpass all other crypto exchanges in India in terms of volume and reserves.
90% of user assets on WazirX stored in Binance-based wallets and remaining 10% in hot and cold storage wallets.
The crypto world is never short on drama, but with WazirX's Proof of Reserve strategy, users can rest easy knowing their assets are safe and sound, even in the midst of all the chaos.
Hey there! 👩🚀 If you are or know an early-stage web3 builder going from 0 to 1, holler at our creative-capital studio Spacekayak. We are a web3-native creative team of folks who love crafting creative solutions for crypto companies. Let’s be frens!
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