Withdrawals and trading are suspended on Vauld, an Indian cryptocurrency exchange
In order to deal with financial challenges, Vauld, the Coinbase-backed Indian cryptocurrency exchange, has suspended all withdrawals, trading, and deposits.
A blog post on Vault’s website by Darshan Bathija, the company’s co-founder and CEO, talked about the difficulties facing the company’s business partners and customers after Terraform Lab’s UST stablecoin collapsed, Celsius Network paused withdrawals, and Three Arrows Capital defaulted.
Vault, based in Singapore, is seeking new investors as it contemplates restructuring. In order to conduct the proposed restructuring exercise, Vault will consider a moratorium before the Singapore courts.
Given the circumstances, the company suggested that immediate action be taken in the best interest of stakeholders. Our financial advisor has been engaged, as well as Cyril’s services, by Kroll Pte Limited”
According to Bathija, we have selected Amarchand Mangaldas and Rajah & Tann Singapore LLP as our Indian and Singapore legal advisors, respectively.
Almost 30% of the company’s workforce was sacked recently, causing it to be in the news.
India’s cryptocurrency exchanges are also facing challenges due to additional taxes, in addition to the global meltdown. Recently, the Indian government announced that gains from virtual assets would be taxed at 30% along with a 1% tax deducted at the source.
In the blog post, Bathija stated that Vault’s management remains dedicated to working with its legal and financial advisors on exploring and analyzing all possible options, including possible restructuring options, that will best protect stakeholders’ interests.
As a result of the new transaction tax, trading on Indian cryptocurrency exchanges has dried up
As a result of the controversial new transaction tax in India, crypto exchanges have warned that trading volumes will plunge.
The Indian crypto exchanges have warned that a controversial new transaction tax will undermine trading with volumes evaporating since the levy took effect.
ZebPay, WazirX, and CoinDCX all lost 60% to 87% of their daily trading as a result of the 1% tax deduction at source coming into effect on July 1. According to the CEO of a fourth company, Giottus, its trading dropped 70%.
Due to plunging prices, unfavorable tax treatment, and difficulty getting cash onto exchanges, those steep declines came on top of already depressed trading levels.
WazirX, backed by Binance, did $3.8 million worth of trading on July 2, a day after TDS took effect, according to CoinGecko. That mark could have been reached in less than two hours last year. It is possible to trade cryptocurrency 24 hours a day, 7 days a week on crypto exchanges.
Market makers and high-frequency traders are “gone,” said WazirX Vice President Rajagopal Menon, while long-term crypto holders are still buying and selling. As well as peer-to-peer trading, traders are migrating to so-called decentralized exchanges, he said.
Taxes on crypto investments were introduced by the government in February, including a TDS and a flat 30% rate. Stocks and bonds are treated differently from such assets, and offsetting losses on them are also forbidden.
In India, the industry players are waiting and watching for the 1% TDS to be implemented on crypto investments
Section 194S in the I-T Act (as per the Finance Act, 2022) imposes a 1 percent TDS on payments towards virtual digital assets or cryptocurrencies over Rs 10,000 in a year.
With the Reserve Bank of India (RBI) stepping up its efforts to crack down on cryptocurrencies, 1 percent tax deducted at source (TDS) has been applied to virtual digital assets (VDAs) and cryptocurrencies since Friday.
According to Section 194S of the Income Tax Act, the TDS of 1% will apply to payments toward virtual digital assets or cryptocurrencies over Rs 10,000 a year.
I-T Rules have been amended with regard to the filing of TDS returns in Form 26QE and Form 16E by the Central Board of Direct Taxes (CBDT) on June 21.
As part of the new law, a person who pays consideration to a resident for transferring a virtual digital asset (VDA) must deduct 1% of the consideration as income tax.
As soon as the resident’s account is credited or when the payment is made, the tax deduction must be made.
TDS on virtual coins come after RBI Governor Shaktikanta Das on Thursday said cryptocurrencies pose a clear threat to the financial system, adding we must take precautions against any emerging threats.
In compliance with Section 194S, CBDT has announced that TDS must be deposited within 30 days of the end of the month in which deductions are made.
The updates to WazirX’s exchange and peer-to-peer platforms (P2P) went live yesterday, according to Rajagopal Menon, Vice President at the leading crypto exchange.
In the new update, Menon told IANS, that tax deductions will be transparent so users are aware of their taxation throughout the crypto buying process.
It is necessary to pay the TDS collected in Indian currency to the Income Tax Department. It is therefore necessary to convert any crypto-based TDS collected into Indian currency.
The ramifications of TDS cannot yet be predicted, according to Menon.
“By the end of the second week of July, we will have a better understanding of this,” he said.
As investors shift to hold, trading has fallen across the industry, and traders may see their capital locked on KYC-compliant Indian exchanges.
As per CBDT clarification, the seller will not be required to deduct taxes if the buyer has deducted them under Section 194S.
The seller may require the buyer to sign an undertaking regarding the tax deduction in order to facilitate proper implementation.
For all virtual digital assets, including cryptocurrencies and NFTs, the Indian government levies a 30 percent flat tax
A crypto transaction tracking software was sold by Coinbase to US authorities
Bitcoin, Ether, and other cryptocurrencies can be tracked using sophisticated tools provided by cryptocurrency exchange Coinbase to Immigration and Customs Enforcement.
According to Intercept, Coinbase purchased software worth $1.36 million from ICE the following month after selling the agency an analytics license for $29,000.
According to the report released on Thursday, “ICE is now able to gather intelligence with Coinbase Tracer, previously known as Coinbase Analytics.”
Tracing transactions via Blockchain can be done by both government and private clients through Coinbase Tracer.
It is not possible to access Coinbase user data when using Coinbase Tracer, according to a company spokesperson.
Cloud subscriptions are available for the software as a service.
It also investigates wider transnational crimes, including a variety of financial offenses. ICE is part of the Department of Homeland Security.
A new specialized team is being formed by the FBI to address cryptocurrency crimes with the aid of the US Department of Justice (DOJ).
Through the complex cryptocurrency ecosystem, criminals are stealing money and laundering it during the pandemic.
Cryptocurrency-related fraud schemes are targeting people of all ages, including the elderly, according to the FBI. The growing popularity and accessibility of cryptocurrency are being driven by advances in cryptocurrency technology and an increase in businesses accepting it as payment.
Sky Mavis’ Ronin Network was hacked in April by the North Korean hacker group Lazarus, which stole $625 million in cryptocurrency.