Central bank-digital-currency-opportunities-challenges-and-designRein Mahatma
The document discusses Central Bank Digital Currency (CBDC) and outlines the Bank of England's approach to exploring its potential design and implementation. Currently, only commercial banks can hold electronic central bank money as reserves, while the public holds cash. A CBDC could allow households and businesses to make payments and store value using an electronic form of central bank money. The document presents a "platform" model for a potential UK CBDC and identifies opportunities as well as risks that would need to be carefully considered regarding monetary policy, financial stability, and the wider economy. It aims to begin dialogue on the appropriate design of a possible future CBDC.
Cryptocurrency is the future of money or the next generation of money. Cryptocurrencies investments have seen a gradual rise over the years which depicts the general acceptance. Currently, as per the latest crypto news, we are seeing a big change in cryptocurrencies due to the emergence of institutional and smart money.
https://www.cryptoknowmics.com/
This document provides an overview of blockchain technology. It discusses that blockchain was first introduced in 2008 as a way to facilitate digital transactions without a central authority. Blockchain uses cryptography, a digital ledger, and a consensus mechanism to securely record transactions. The blockchain is made up of blocks that contain cryptographic hashes linking them together. Miners use proof-of-work to verify transactions and are rewarded with cryptocurrency. Once recorded, transactions cannot be altered, providing transparency and security.
Cryptocurrency is a digital currency that uses cryptography and a decentralized system to record transactions. It has no central authority and relies on blockchain technology to maintain a consensus on transactions across a distributed network. Key features include using cryptography, a distributed network, and a consensus mechanism like proof-of-work. To be considered a cryptocurrency, it must also function as a usable currency and run on digital technologies like computing and networking hardware. Advantages include easy access, quick payments, fast settlements, privacy, and lack of third parties, while disadvantages include volatility, difficulty of use, and risk of permanent loss if private keys are lost.
Central bank-digital-currency-opportunities-challenges-and-designRein Mahatma
The document discusses Central Bank Digital Currency (CBDC) and outlines the Bank of England's approach to exploring its potential design and implementation. Currently, only commercial banks can hold electronic central bank money as reserves, while the public holds cash. A CBDC could allow households and businesses to make payments and store value using an electronic form of central bank money. The document presents a "platform" model for a potential UK CBDC and identifies opportunities as well as risks that would need to be carefully considered regarding monetary policy, financial stability, and the wider economy. It aims to begin dialogue on the appropriate design of a possible future CBDC.
Cryptocurrency is the future of money or the next generation of money. Cryptocurrencies investments have seen a gradual rise over the years which depicts the general acceptance. Currently, as per the latest crypto news, we are seeing a big change in cryptocurrencies due to the emergence of institutional and smart money.
https://www.cryptoknowmics.com/
This document provides an overview of blockchain technology. It discusses that blockchain was first introduced in 2008 as a way to facilitate digital transactions without a central authority. Blockchain uses cryptography, a digital ledger, and a consensus mechanism to securely record transactions. The blockchain is made up of blocks that contain cryptographic hashes linking them together. Miners use proof-of-work to verify transactions and are rewarded with cryptocurrency. Once recorded, transactions cannot be altered, providing transparency and security.
Cryptocurrency is a digital currency that uses cryptography and a decentralized system to record transactions. It has no central authority and relies on blockchain technology to maintain a consensus on transactions across a distributed network. Key features include using cryptography, a distributed network, and a consensus mechanism like proof-of-work. To be considered a cryptocurrency, it must also function as a usable currency and run on digital technologies like computing and networking hardware. Advantages include easy access, quick payments, fast settlements, privacy, and lack of third parties, while disadvantages include volatility, difficulty of use, and risk of permanent loss if private keys are lost.
This document provides an introduction to smart contracts. It defines a smart contract as a program whose execution is autonomous and transparent, cannot be reverted, and has a public and immutable trace. Smart contracts can send, receive, and store money, and interact with other smart contracts or internet-connected systems. Bitcoin is described as the first smart contract, as it operates through an autonomous program on a decentralized network with public, immutable transactions. Ethereum is presented as an platform that allows for more complex smart contracts through a Turing-complete programming language. Examples of potential smart contract applications include sales contracts, decentralized DNS, autonomous companies, insurance, and inheritance. Challenges mentioned include scalability, privacy vs criminality, bugs, and
Traditional financial systems are limited in many ways, and blockchain can help them move to the next stage. Decentralized Finance is one of the hot topics at the moment. This technology is capable of introducing new possibilities of a trustless global financial system with a much quicker and more secured settlement time.
Decentralized finance applications can’t be tampered with, promotes interoperable design, fully transparent network, permissionless access, and user empowerment. There are already a vast number of DeFi apps for multiple varying use cases.
Popular DeFi use cases include asset management, complying with AML and CFT measurements, decentralized organizations, analytics and risk management, and so on.
We at 101 Blockchains believe decentralized Finance is the next stage for our financial systems. That’s why we offer premium blockchain courses specifically for DeFi and anyone who wants to utilize this technology for their company.
Our Introduction to DeFi course will focus on the purpose and scope of DeFi, along with introducing you to the underlying mechanism.
Learn more about the course from here ->
https://academy.101blockchains.com/courses/defi-course
We also offer additional courses and masterclasses for the finance sector. Learn more about the course from here ->
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Enterprise Blockchains and Trade Finance Course
https://academy.101blockchains.com/courses/enterprise-blockchains-and-trade-finance
We also offer lucrative certification courses for professionals. Learn more about these courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Architect (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
This document introduces Bitcoin and Bitcoin mining. It discusses how Bitcoin works as a digital currency using cryptography and a blockchain to record transactions. It then explains the process of Bitcoin mining, where miners use specialized hardware to validate blocks and are rewarded with Bitcoins. It describes two main methods of mining: solo mining, where miners work alone with variable rewards, and pooled mining, where miners join mining pools to get more consistent rewards proportional to their contributed computing power. The document analyzes issues like pool hopping and proposes solutions like pay-per-share pools to provide consistent rewards.
A really simple explanation of Bitcoin and why everyone afraid of it.
My other FinTech presentations:
Bitcoin: http://www.slideshare.net/ishmelev/bitcoin-future
Digital bank: http://www.slideshare.net/ishmelev/digital-bank-eng
Future of bank: http://www.slideshare.net/ishmelev/bank-future
The document provides an overview of smart contracts, including their basis, usage, and implications for society. It defines smart contracts as "proofs of agreement" that can be placed on a blockchain to be executed decentralizedly. Examples are given of direct uses like publishing smart contracts as tokens or using decentralized applications that run on smart contracts. Potential applications discussed include financial derivatives, insurance, voting, identity/reputation systems, and crowdfunding. The document also examines smart contracts from the perspective of developers and impacts on government and regulations.
Ethereum is an open-source blockchain platform that enables developers to build decentralized applications and smart contracts. It differs from Bitcoin in that it allows developers to build applications on top of its blockchain using its token Ether. Smart contracts on Ethereum use "gas" paid in Ether to execute transactions and are programs that automatically execute the terms of a contract. While smart contracts provide benefits like security, standardization and reducing the need for third parties, they also have disadvantages like being vulnerable to human error in coding and having an uncertain legal status.
This document provides an overview of blockchain technology, how it works, and its applications. It defines blockchain as a decentralized digital ledger consisting of blocks that record transactions across networks so past transactions cannot be altered. The document outlines the history of blockchain, how it provides security through hashing and proof-of-work algorithms, and how cryptocurrencies use blockchain to be immune from counterfeiting without central authorities. It then provides an example of how a basic bitcoin transaction occurs between parties on the blockchain network.
An Introduction to Blockchain Technology Niuversity
Blockchain technology allows for a shared, replicated ledger of transactions that can be viewed by all participants. It enables peer-to-peer exchanges on a distributed network in a secure and non-repudiable way. Blockchain solves issues with monitoring asset ownership and transfers in a trusted business network by providing a permissioned, replicated shared ledger. It is not just for cryptocurrencies like Bitcoin but can be used for any form of asset registry, inventory, and exchange across different industries. The future potential of blockchain applications is still emerging as it will be applied experimentally to many aspects of society over the next few years.
Stablecoin is a different type of cryptocurrency. These coins always have a stable price. As the prices of cryptocurrencies are highly volatile, stablecoin is a solution to this problem. Typically, the volatile nature of cryptocurrencies makes it impossible for companies to utilize them as an alternative to paper-based money. Thus, stablecoins can help out in that regard.
Typically, there are 4 types of stablecoin – Fiat-Backed Stablecoin, Commodity-Backed Stablecoin, Cryptocurrency-Backed Stablecoin, and Seigniorage-Style/Non-collateralized Stablecoin. All of these four types have different architecture and use cases behind them.
Even though there are many top stablecoins on the market, many tend to deal with lots of hurdles. For example, centralized nature, trust issues, regulations, and unstable nature are a few of the limitations.
If you are thinking about utilizing the power of stablecoins in your company or project, then we recommend starting with a solid blockchain course on the topic. 101 Blockchains is one of the leading educational networks where we offer the best of the best materials for your needs.
We have an array of masterclasses and courses on the topic, that you should definitely check out. Stablecoin Fundamentals Masterclass
https://academy.101blockchains.com/courses/stablecoin-masteclass
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Check out our certification courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course
https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Expert (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
Check out our full guides on this topic from here ->
https://101blockchains.com/stablecoins/
https://101blockchains.com/stablecoin-vs-bitcoin/
https://101blockchains.com/list-of-stablecoins/
An introductory look at various Blockchain Technologies and examples. In this slide I explain about basics of Etherium and types of Blockchain technology currently present and some known public projects/examples which use Blockchain.
A new movement is pumping oxygen into the cryptocurrency industry despite asset prices that remain 65% lower than where they were in late 2017. It’s called DeFi, short for decentralized finance—it’s the notion that crypto entrepreneurs can recreate traditional financial instruments in a decentralized architecture, outside of companies’ and governments’ control.
Let's take a look at what DeFi is, what tools are available out there, are they viable or just theoretical, who and how uses them, and most importantly, how can you use them (and if there is a reason for that).
Agenda:
- What is DeFi
- Open Lending Protocols (MakerDAO, Dharma, Compound)
- Decentralized Prediction Markets, Hedging (Augur, Gnosis)
- Exchanges (IDEX, EtherDelta, Binance DEX, Uniswap) and Open Marketplaces (OpenSea, Rarebits, Decentraland)
- Stablecoins (Dai, Tether)
- Usecases for you
Introduction to Decentralized Finance - DeFiUmair Moon
DeFi allows users to access financial services like borrowing, lending, and trading without relying on centralized intermediaries. It utilizes decentralized applications built on blockchains, mainly Ethereum, through smart contracts. Some key aspects of DeFi include yield farming to earn returns from providing capital to protocols, liquidity mining where protocols incentivize liquidity through native tokens, and airdrops where projects distribute free tokens.
Introduction to Blockchain and Smart ContractsTechracers
This document provides an introduction to smart contracts, which are programs that execute autonomously and securely based on the terms of an agreement. It explains that smart contracts operate on blockchains in a decentralized, immutable, trustless, and transparent manner. Examples are given of how smart contracts can send and receive money or interact with other contracts. While Bitcoin was the first to support basic smart contracts by validating transactions if certain conditions are met, Ethereum allows for more programmable and extensible smart contracts through its Ethereum Virtual Machine. Further examples are given of how smart contracts can be used for multi-signature accounts, managing insurance agreements, providing utilities to other contracts, and storing application information.
This document provides background information on cryptocurrencies and blockchain technology. It discusses cryptocurrencies like Bitcoin and Ethereum, initial coin offerings, how to obtain cryptocurrencies, and price fluctuations. It also explains blockchain technology including how transactions are processed and validated through hashing, digital signatures, and proof of work. Potential applications or "killer apps" of blockchain technology discussed include payments, registries, supply chain management, and digital identities. The document concludes with information on blockchain initiatives in Austria.
Murughan Palaniachari presents information on blockchain concepts. He discusses how blockchain enables a decentralized future (Web 3.0) with distributed and individual ownership of data. Blockchain uses distributed ledgers and cryptography to securely record transactions in an immutable, transparent and verifiable way without centralized control. Key concepts covered include how blockchain works, the structure of blocks and blockchains, consensus mechanisms, smart contracts, and examples of blockchain use cases.
Decentralized finance is a distributed financial system where there is no centralized governing body. Decentralized finance or DeFi applications utilize peer-to-peer finance networks. These networks are powered by decentralized and distributed platforms. The DeFi application ecosystem is vast and it includes various types of apps such as wallets, lending platforms, infrastructure development suits etc.
As there are many DeFi applications on the market, finding the top applications can be a difficult process. Here, we will discuss the top 5 DeFi applications – AAVE, Compound, MakerDAO, Synthetix, and MetaMask.
These are some of the widely utilized applications on the market. If you want to learn more about decentralized finance applications, then we have you covered. 101 blockchains feature a blockchain course that focuses on decentralized finance and will help you understand the working mechanism of this new financial structure.
Learn more about the course from here ->
Introduction to DeFi Course
https://academy.101blockchains.com/courses/defi-course
Learn about additional courses and masterclasses for the finance sector ->
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Enterprise Blockchains and Trade Finance Course
https://academy.101blockchains.com/courses/enterprise-blockchains-and-trade-finance
We also offer lucrative certification courses for professionals. Learn more about these courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course
https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Architect (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
Read our full guide on this topic ->
https://101blockchains.com/decentralized-finance-applications/
https://101blockchains.com/top-defi-protocols/
https://101blockchains.com/top-defi-wallets/
https://101blockchains.com/best-defi-asset-management-tools/
https://101blockchains.com/decentralized-finance-tools/
The document discusses cryptocurrencies and blockchain technology. It provides definitions of cryptocurrency and describes how cryptocurrencies work through distributed ledger technology and blockchain. It explains key concepts like private keys, consensus mechanisms like proof-of-work and proof-of-stake. It also discusses factors like volatility, ease of use, scalability that impact cryptocurrencies. In conclusion, it mentions that cryptocurrency development is advancing rapidly and aims to be a new layer for decentralized apps, though there are challenges around scaling and other problems to solve.
Blockchain technology is gaining significant attention and investment from major banks and financial institutions. Banks are projected to invest $400 million in blockchain by 2019, and over 30% of firms surveyed have annual blockchain budgets over $5 million. Blockchain uses distributed ledger technology to securely record transactions in digitally recorded "blocks" that are linked together, allowing participants on a blockchain network to reach consensus on a single view of the truth. This consensus-based approach provides advantages over traditional centralized databases by enabling trustless verification and transparency across organizations without the need for intermediaries.
1. The document discusses the taxation of virtual digital assets (VDAs) in India following amendments made in the 2022 Union Budget.
2. Income arising from the transfer of VDAs will now be taxed at 30% under section 115BBH, without any deductions allowed except for the cost of acquisition.
3. The definition of "transfer" has been expanded to include various transactions to avoid controversies over whether a VDA is held as a capital or trading asset.
The document provides an overview of cryptocurrency and related concepts:
- Cryptocurrency is a digital currency that uses encryption to function as both a currency and virtual accounting system without a central authority.
- Key events in the development of cryptocurrency included research in the 1980s laying the foundation for blockchain and the 2008 introduction of Bitcoin.
- Core concepts discussed include mining, which uses computational power to validate transactions; decentralization, where transactions are verified across a network rather than by a central entity; and wallets for storing cryptocurrency.
- Other topics covered involve anonymity in transactions; blockchain as the underlying technology; and the growth of cryptocurrency popularity and markets over time alongside trends like decentralized finance and non
This document provides an introduction to smart contracts. It defines a smart contract as a program whose execution is autonomous and transparent, cannot be reverted, and has a public and immutable trace. Smart contracts can send, receive, and store money, and interact with other smart contracts or internet-connected systems. Bitcoin is described as the first smart contract, as it operates through an autonomous program on a decentralized network with public, immutable transactions. Ethereum is presented as an platform that allows for more complex smart contracts through a Turing-complete programming language. Examples of potential smart contract applications include sales contracts, decentralized DNS, autonomous companies, insurance, and inheritance. Challenges mentioned include scalability, privacy vs criminality, bugs, and
Traditional financial systems are limited in many ways, and blockchain can help them move to the next stage. Decentralized Finance is one of the hot topics at the moment. This technology is capable of introducing new possibilities of a trustless global financial system with a much quicker and more secured settlement time.
Decentralized finance applications can’t be tampered with, promotes interoperable design, fully transparent network, permissionless access, and user empowerment. There are already a vast number of DeFi apps for multiple varying use cases.
Popular DeFi use cases include asset management, complying with AML and CFT measurements, decentralized organizations, analytics and risk management, and so on.
We at 101 Blockchains believe decentralized Finance is the next stage for our financial systems. That’s why we offer premium blockchain courses specifically for DeFi and anyone who wants to utilize this technology for their company.
Our Introduction to DeFi course will focus on the purpose and scope of DeFi, along with introducing you to the underlying mechanism.
Learn more about the course from here ->
https://academy.101blockchains.com/courses/defi-course
We also offer additional courses and masterclasses for the finance sector. Learn more about the course from here ->
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Enterprise Blockchains and Trade Finance Course
https://academy.101blockchains.com/courses/enterprise-blockchains-and-trade-finance
We also offer lucrative certification courses for professionals. Learn more about these courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Architect (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
This document introduces Bitcoin and Bitcoin mining. It discusses how Bitcoin works as a digital currency using cryptography and a blockchain to record transactions. It then explains the process of Bitcoin mining, where miners use specialized hardware to validate blocks and are rewarded with Bitcoins. It describes two main methods of mining: solo mining, where miners work alone with variable rewards, and pooled mining, where miners join mining pools to get more consistent rewards proportional to their contributed computing power. The document analyzes issues like pool hopping and proposes solutions like pay-per-share pools to provide consistent rewards.
A really simple explanation of Bitcoin and why everyone afraid of it.
My other FinTech presentations:
Bitcoin: http://www.slideshare.net/ishmelev/bitcoin-future
Digital bank: http://www.slideshare.net/ishmelev/digital-bank-eng
Future of bank: http://www.slideshare.net/ishmelev/bank-future
The document provides an overview of smart contracts, including their basis, usage, and implications for society. It defines smart contracts as "proofs of agreement" that can be placed on a blockchain to be executed decentralizedly. Examples are given of direct uses like publishing smart contracts as tokens or using decentralized applications that run on smart contracts. Potential applications discussed include financial derivatives, insurance, voting, identity/reputation systems, and crowdfunding. The document also examines smart contracts from the perspective of developers and impacts on government and regulations.
Ethereum is an open-source blockchain platform that enables developers to build decentralized applications and smart contracts. It differs from Bitcoin in that it allows developers to build applications on top of its blockchain using its token Ether. Smart contracts on Ethereum use "gas" paid in Ether to execute transactions and are programs that automatically execute the terms of a contract. While smart contracts provide benefits like security, standardization and reducing the need for third parties, they also have disadvantages like being vulnerable to human error in coding and having an uncertain legal status.
This document provides an overview of blockchain technology, how it works, and its applications. It defines blockchain as a decentralized digital ledger consisting of blocks that record transactions across networks so past transactions cannot be altered. The document outlines the history of blockchain, how it provides security through hashing and proof-of-work algorithms, and how cryptocurrencies use blockchain to be immune from counterfeiting without central authorities. It then provides an example of how a basic bitcoin transaction occurs between parties on the blockchain network.
An Introduction to Blockchain Technology Niuversity
Blockchain technology allows for a shared, replicated ledger of transactions that can be viewed by all participants. It enables peer-to-peer exchanges on a distributed network in a secure and non-repudiable way. Blockchain solves issues with monitoring asset ownership and transfers in a trusted business network by providing a permissioned, replicated shared ledger. It is not just for cryptocurrencies like Bitcoin but can be used for any form of asset registry, inventory, and exchange across different industries. The future potential of blockchain applications is still emerging as it will be applied experimentally to many aspects of society over the next few years.
Stablecoin is a different type of cryptocurrency. These coins always have a stable price. As the prices of cryptocurrencies are highly volatile, stablecoin is a solution to this problem. Typically, the volatile nature of cryptocurrencies makes it impossible for companies to utilize them as an alternative to paper-based money. Thus, stablecoins can help out in that regard.
Typically, there are 4 types of stablecoin – Fiat-Backed Stablecoin, Commodity-Backed Stablecoin, Cryptocurrency-Backed Stablecoin, and Seigniorage-Style/Non-collateralized Stablecoin. All of these four types have different architecture and use cases behind them.
Even though there are many top stablecoins on the market, many tend to deal with lots of hurdles. For example, centralized nature, trust issues, regulations, and unstable nature are a few of the limitations.
If you are thinking about utilizing the power of stablecoins in your company or project, then we recommend starting with a solid blockchain course on the topic. 101 Blockchains is one of the leading educational networks where we offer the best of the best materials for your needs.
We have an array of masterclasses and courses on the topic, that you should definitely check out. Stablecoin Fundamentals Masterclass
https://academy.101blockchains.com/courses/stablecoin-masteclass
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Check out our certification courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course
https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Expert (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
Check out our full guides on this topic from here ->
https://101blockchains.com/stablecoins/
https://101blockchains.com/stablecoin-vs-bitcoin/
https://101blockchains.com/list-of-stablecoins/
An introductory look at various Blockchain Technologies and examples. In this slide I explain about basics of Etherium and types of Blockchain technology currently present and some known public projects/examples which use Blockchain.
A new movement is pumping oxygen into the cryptocurrency industry despite asset prices that remain 65% lower than where they were in late 2017. It’s called DeFi, short for decentralized finance—it’s the notion that crypto entrepreneurs can recreate traditional financial instruments in a decentralized architecture, outside of companies’ and governments’ control.
Let's take a look at what DeFi is, what tools are available out there, are they viable or just theoretical, who and how uses them, and most importantly, how can you use them (and if there is a reason for that).
Agenda:
- What is DeFi
- Open Lending Protocols (MakerDAO, Dharma, Compound)
- Decentralized Prediction Markets, Hedging (Augur, Gnosis)
- Exchanges (IDEX, EtherDelta, Binance DEX, Uniswap) and Open Marketplaces (OpenSea, Rarebits, Decentraland)
- Stablecoins (Dai, Tether)
- Usecases for you
Introduction to Decentralized Finance - DeFiUmair Moon
DeFi allows users to access financial services like borrowing, lending, and trading without relying on centralized intermediaries. It utilizes decentralized applications built on blockchains, mainly Ethereum, through smart contracts. Some key aspects of DeFi include yield farming to earn returns from providing capital to protocols, liquidity mining where protocols incentivize liquidity through native tokens, and airdrops where projects distribute free tokens.
Introduction to Blockchain and Smart ContractsTechracers
This document provides an introduction to smart contracts, which are programs that execute autonomously and securely based on the terms of an agreement. It explains that smart contracts operate on blockchains in a decentralized, immutable, trustless, and transparent manner. Examples are given of how smart contracts can send and receive money or interact with other contracts. While Bitcoin was the first to support basic smart contracts by validating transactions if certain conditions are met, Ethereum allows for more programmable and extensible smart contracts through its Ethereum Virtual Machine. Further examples are given of how smart contracts can be used for multi-signature accounts, managing insurance agreements, providing utilities to other contracts, and storing application information.
This document provides background information on cryptocurrencies and blockchain technology. It discusses cryptocurrencies like Bitcoin and Ethereum, initial coin offerings, how to obtain cryptocurrencies, and price fluctuations. It also explains blockchain technology including how transactions are processed and validated through hashing, digital signatures, and proof of work. Potential applications or "killer apps" of blockchain technology discussed include payments, registries, supply chain management, and digital identities. The document concludes with information on blockchain initiatives in Austria.
Murughan Palaniachari presents information on blockchain concepts. He discusses how blockchain enables a decentralized future (Web 3.0) with distributed and individual ownership of data. Blockchain uses distributed ledgers and cryptography to securely record transactions in an immutable, transparent and verifiable way without centralized control. Key concepts covered include how blockchain works, the structure of blocks and blockchains, consensus mechanisms, smart contracts, and examples of blockchain use cases.
Decentralized finance is a distributed financial system where there is no centralized governing body. Decentralized finance or DeFi applications utilize peer-to-peer finance networks. These networks are powered by decentralized and distributed platforms. The DeFi application ecosystem is vast and it includes various types of apps such as wallets, lending platforms, infrastructure development suits etc.
As there are many DeFi applications on the market, finding the top applications can be a difficult process. Here, we will discuss the top 5 DeFi applications – AAVE, Compound, MakerDAO, Synthetix, and MetaMask.
These are some of the widely utilized applications on the market. If you want to learn more about decentralized finance applications, then we have you covered. 101 blockchains feature a blockchain course that focuses on decentralized finance and will help you understand the working mechanism of this new financial structure.
Learn more about the course from here ->
Introduction to DeFi Course
https://academy.101blockchains.com/courses/defi-course
Learn about additional courses and masterclasses for the finance sector ->
Blockchain in Finance Masterclass
https://academy.101blockchains.com/courses/blockchain-in-finance
Central Bank Digital Currency (CBDC) Masterclass
https://academy.101blockchains.com/courses/central-bank-digital-currency
Enterprise Blockchains and Trade Finance Course
https://academy.101blockchains.com/courses/enterprise-blockchains-and-trade-finance
We also offer lucrative certification courses for professionals. Learn more about these courses from here ->
Certified Enterprise Blockchain Professional (CEBP) course
https://academy.101blockchains.com/courses/blockchain-expert-certification
Certified Enterprise Blockchain Architect (CEBA) course
https://academy.101blockchains.com/courses/certified-enterprise-blockchain-architect
Certified Blockchain Security Architect (CBSE) course
https://academy.101blockchains.com/courses/certified-blockchain-security-expert
Read our full guide on this topic ->
https://101blockchains.com/decentralized-finance-applications/
https://101blockchains.com/top-defi-protocols/
https://101blockchains.com/top-defi-wallets/
https://101blockchains.com/best-defi-asset-management-tools/
https://101blockchains.com/decentralized-finance-tools/
The document discusses cryptocurrencies and blockchain technology. It provides definitions of cryptocurrency and describes how cryptocurrencies work through distributed ledger technology and blockchain. It explains key concepts like private keys, consensus mechanisms like proof-of-work and proof-of-stake. It also discusses factors like volatility, ease of use, scalability that impact cryptocurrencies. In conclusion, it mentions that cryptocurrency development is advancing rapidly and aims to be a new layer for decentralized apps, though there are challenges around scaling and other problems to solve.
Blockchain technology is gaining significant attention and investment from major banks and financial institutions. Banks are projected to invest $400 million in blockchain by 2019, and over 30% of firms surveyed have annual blockchain budgets over $5 million. Blockchain uses distributed ledger technology to securely record transactions in digitally recorded "blocks" that are linked together, allowing participants on a blockchain network to reach consensus on a single view of the truth. This consensus-based approach provides advantages over traditional centralized databases by enabling trustless verification and transparency across organizations without the need for intermediaries.
1. The document discusses the taxation of virtual digital assets (VDAs) in India following amendments made in the 2022 Union Budget.
2. Income arising from the transfer of VDAs will now be taxed at 30% under section 115BBH, without any deductions allowed except for the cost of acquisition.
3. The definition of "transfer" has been expanded to include various transactions to avoid controversies over whether a VDA is held as a capital or trading asset.
The document provides an overview of cryptocurrency and related concepts:
- Cryptocurrency is a digital currency that uses encryption to function as both a currency and virtual accounting system without a central authority.
- Key events in the development of cryptocurrency included research in the 1980s laying the foundation for blockchain and the 2008 introduction of Bitcoin.
- Core concepts discussed include mining, which uses computational power to validate transactions; decentralization, where transactions are verified across a network rather than by a central entity; and wallets for storing cryptocurrency.
- Other topics covered involve anonymity in transactions; blockchain as the underlying technology; and the growth of cryptocurrency popularity and markets over time alongside trends like decentralized finance and non
Expanding Beyond Cryptocurrency in the Digital World using Blockchain TechnologyYogeshIJTSRD
A blockchain is principally a distributed database of records or public ledger of all transactions or digital events that are executed and shared among the participating parties. Once entered, information can never be erased. The blockchain encompasses a precise and supportable record of each solo transaction ever made in the history of all the transactions. Bitcoin, the decentralized digital currency, is that the most well liked example that uses blockchain technology. The digital currency bitcoin itself is extremely controversial but the underlying blockchain technology has worked flawlessly and located a good range of applications in both the financial and nonfinancial world. Anirvan Vinod "Expanding Beyond Cryptocurrency in the Digital World using Blockchain Technology" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd43871.pdf Paper URL: https://www.ijtsrd.com/computer-science/other/43871/expanding-beyond-cryptocurrency-in-the-digital-world-using-blockchain-technology/anirvan-vinod
Cryptocurrency Alliance Super PAC-The Global Emergence of Cryptocurrencies an...Casey Botticello
The document is a presentation by Casey Botticello, president of the Cryptocurrency Alliance Super PAC, on the global emergence of cryptocurrencies and blockchain technology. It provides an overview of cryptocurrencies and blockchain, discusses how Bitcoin and other cryptocurrencies were developed, and outlines some of the international adoption and regulation of cryptocurrency. It also describes the Cryptocurrency Alliance Super PAC's strategy of education, political advocacy, and countering propaganda regarding cryptocurrencies.
Bitcoin is a digital currency introduced in 2009 that uses cryptography to control the creation and transfer of money. It works using a decentralized ledger called a blockchain that records all transactions. Users can obtain bitcoins through mining or exchanges with other currencies. While it offers advantages like lack of central control, bitcoins have also been associated with illicit activity and many countries regulate or restrict their use.
This document discusses blockchain technology and cryptocurrency. It begins with introductions to blockchain and cryptocurrency. It then covers technical aspects of blockchain like hashing and nodes. It discusses different types of cryptocurrencies and tokens. It also discusses decentralized marketplaces and exchanges. Specific blockchain use cases are mentioned like supply chain tracking and Estonia's digital identity system. Government approaches to blockchain from different countries are also reviewed.
This document discusses Bitcoin, a decentralized digital currency. It describes how Bitcoin works through peer-to-peer technology without a central authority. Key topics covered include how new Bitcoins are generated through mining, how to acquire and store Bitcoins using wallets, how transactions are processed and recorded on the blockchain, and some advantages and disadvantages of using Bitcoin.
This document provides an introduction to Bitcoin technology. It begins with learning outcomes about identifying issues and implications of Bitcoin, applications of the technology, and describing how Bitcoin works. It then discusses the history of Bitcoin and what Bitcoin is as a decentralized digital currency. The document thoroughly explains how Bitcoin technology works, including mining, transactions, wallets, and challenges in using Bitcoin like volatility, small user base, and lack of regulation.
This document provides an overview of a seminar on Bitcoin technology. It defines key terms like cryptocurrency, blockchain, and mining. It discusses Bitcoin's history and how transactions work using public/private keys and addresses. Advantages include security, low fees and payment freedom, while disadvantages include acceptance issues and potential for misuse. Applications of blockchain beyond Bitcoin like smart contracts are also covered.
This document provides an overview and introduction to cryptocurrencies and blockchain technology for investors. It defines key terms like blockchain, distributed ledger, cryptocurrency and Bitcoin. It explains how blockchain works to securely record transactions in digital ledgers without a central authority. The document outlines the investment opportunities in cryptocurrencies like Bitcoin themselves, as well as companies driving innovation in the crypto economy through mining, exchanges, payments and more. It aims to help investors understand this new asset class and where it may fit in a portfolio.
What is cryptocurrency?, Blockchain, Bitcoin, Bitcoin Mining, Facts about Bitcoin Different types of cryptocurrencies, Cryptocurrency in India, Supreme court on cryptocurrency. Advantages and disadvantages of cryptocurrencies, Do we Invest?, Conclusion.
CRYPTOCURRENCY :HOW IT'S WORK,ADVANTAGES AND DISADVANTAGES.pdfBharata chandra Sahu
INTRODUCTION OF CRYPTOCURRENCY
Currency, crypto- currency, crypto, or coin is a digital forex designed to work as a medium of trade via a pc community that isn't always reliant on any central authority, comparable as a authorities or bank, to uphold or hold it
Cryptocurrency, every now and then known as crypto- foreign money or crypto, is any shape of forex that exists digitally or almost and makes use of cryptography to invulnerable deals. Cryptocurrencies do no longer have a central issuing or regulating authority, alternatively the use of a decentralized machine to file offers and difficulty new units.
What Is Cryptocurrency?
A cryptocurrency is a digital or digital foreign money that is secured via cryptography, which makes it almost insolvable to pretend or double- spend. severa cryptocurrencies are decentralized networks grounded on blockchain science — a dispensed tally completed via a far-off community of computers. A defining factor of cryptocurrencies is that they're normally no longer issued by using any central authority, rendering them theoretically susceptible to authorities quandary or manipulation.
Cryptocurrency is a digital fee machine that does now not calculate on banks to corroborate deals. It’s a peer- to- peer machine that can allow each person somewhere to shoot and admit payments. alternatively of being bodily plutocrat carried round and modified in the actual world, cryptocurrency repayments stay in simple terms as digital entries to an on-line database describing particular deals. When you switch cryptocurrency finances, the offers are recorded in a public tally. Cryptocurrency is saved in digital holdalls .
The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 is probably to be added in the downtime session of the Parliament. It's a invoice that would adjust Cryptocurrency in India. On December 7 2021, Finance minister Nirmala Sitharaman asserted that the the proposed Central Bank Digital Currency may not increase cryptocurrency in India.
Are Cryptocurrencies Legal?
Fiat currencies figure out their authority as mediums of sale from the authorities or monetary authorities. For illustration, every bone invoice is aided with the aid of the Federal Reserve.
But cryptocurrencies don't seem to be backed via any public or personal realities. thus, it has been subtle to make a case for their prison repute in exclusive fiscal authorities all through the world. It does no longer assist things that cryptocurrencies have generally labored outdoor utmost being fiscal structure. The prison repute of cryptocurrencies has counteraccusations for their use in diurnal offers and trading. In June 2019, the Financial Action Task Force( FATF) endorsed that line transfers of cryptocurrencies need to be problem to the prerequisites of its outing Rule, which requires AML compliance.
As of December 2021, El Salvador used to be the solely united states in the world to enable Bitcoin as criminal soft for monetary deals.
Blockchain is a distributed digital ledger composed of blocks that record transactions in a verifiable and permanent way. Each block contains a cryptographic hash of the previous block, linking the blocks together in a chain. This ensures that data in the blockchain cannot be tampered with or altered once recorded. Bitcoin is the first cryptocurrency that uses blockchain technology to operate as a peer-to-peer electronic cash system without the need for centralized control. While it provides advantages like freedom in payments and transparency, it also faces challenges like volatility due to lack of government backing and risk of bans or other currencies becoming more popular. Blockchain has many potential applications beyond cryptocurrency, including more efficient and secure real estate transactions, voting systems, IoT device
Bitcoin is a digital currency that was created in 2008. Transactions occur directly between users without an intermediary and are recorded on a public ledger called the blockchain. Bitcoins are created through a process called mining, where users offer their computing power to verify transactions. Hackers can steal bitcoins by gaining access to users' private keys or hijacking bitcoin mining pools to redirect computing power for their own mining. Lucideus Tech provides cybersecurity training and certification to help people learn about securing digital currencies and networks from criminal hackers.
What is Cryptocurrency?
What is Cryptocurrency?
Definition and Key Characteristics
Cryptographic money alludes to a computerized type of cash that works in light of cryptographic standards. A decentralized system operates without a central authority, such as a bank or government.
Cryptocurrency relies on blockchain technology, a decentralized record that records all transactions across a network of computers. This innovation guarantees straightforwardness, security, and permanence in the digital currency biological system.
Brief History and Evolution of Cryptocurrency
Digital currency emerged in 2009 with the introduction of Bitcoin (BTC) by an anonymous individual or group known as Nakamoto. Bitcoin became the first decentralized digital currency and laid the foundation for the development of the crypto market. Over time, developers have created various other cryptocurrencies, each with its own features and use cases. Models incorporate Ethereum (ETH), Wave (XRP), Litecoin (LTC), and more.
Since its commencement, cryptographic money has developed fundamentally. It has earned respect and acknowledgment from people, organizations, and even legislatures. Cryptocurrency adoption drives diverse applications and financial products in the growing crypto space.
Importance of Blockchain Technology
Blockchain innovation is vital to the working of cryptographic forms of money. It fills in as a decentralized record that records and confirms all exchanges. One of its key benefits is the elevated degree of straightforwardness it gives. All exchanges recorded on the blockchain are open to the general population, guaranteeing responsibility and trust inside the framework.
Also, blockchain innovation upgrades security. The cryptographic security of every transaction makes it difficult for malicious actors to alter or control the transaction records. Decentralization in the blockchain reduces single point of failure risk by replicating records across multiple network nodes.
Additionally, blockchain innovation empowers the end of go-betweens in monetary exchanges. It permits shared exchanges, eliminating the requirement for banks or other monetary establishments to work with and validate exchanges. This component of blockchain innovation can change customary monetary frameworks and increment monetary inclusivity, especially in underserved areas.
In summary, cryptocurrency is digital money that operates based on cryptographic principles. Its decentralized nature, worked with by blockchain innovation, gives straightforwardness, security, and the potential for monetary inclusivity.
Digital currency's evolution transforms our perception and execution of value, ushering in a new era of decentralized finance.
Key Cryptocurrencies in the Market
Bitcoin (BTC): The Pioneer and Market Leader
Bitcoin (BTC) is the first and most striking advanced money. It was made by Satoshi Nakamoto and introduced in 2009.
Bitcoin is a digital currency created by the anonymous Satoshi Nakamoto and introduced in 2008. Transactions occur directly between peer-to-peer users without an intermediary and are recorded on the public blockchain ledger. Bitcoins are issued as a reward for verifying transactions through mining, where users offer computing power. Hackers can steal bitcoins by gaining private keys of user wallets or hijacking mining pools to redirect computing power to mine for themselves. Lucideus Tech provides cybersecurity training and certification to learn skills like hacking techniques.
Bitcoin is a digital currency created by the anonymous Satoshi Nakamoto and introduced in 2008. Transactions occur directly between peer-to-peer users without an intermediary and are recorded on the public blockchain ledger. Bitcoins are issued as a reward for verifying transactions through mining, where users offer their computing power. Hackers can steal bitcoins by gaining access to users' private keys or hijacking mining pools to redirect computing power to mine for themselves. Lucideus Tech provides cybersecurity training and certification to help protect against these threats.
- Bitcoin is a digital currency that operates on a peer-to-peer network without central authorities or banks. It was created in 2009 by an anonymous developer known as Satoshi Nakamoto.
- Transactions are recorded in a public ledger called the blockchain, and bitcoins are issued as a reward for processing transactions through mining. Users store bitcoins in digital wallets and can send and receive bitcoins for transactions.
- While Bitcoin provides advantages like low fees and financial freedom, it also faces challenges of market volatility and a need for wider acceptance to benefit from network effects. Development of Bitcoin software and services is ongoing as the currency continues to mature.
Similar to axation of Virtual Digital Assets by Ms. Nayan Handa (20)
This document summarizes the key regulations around initial public offerings (IPOs) and further public offerings (FPOs) in India as per the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. It outlines the eligibility criteria for issuers, promoters and directors. It also describes the important aspects of pricing, offer documents, advertising, underwriting, minimum subscription levels, allotment process and post-issue requirements. Key points include minimum net worth, profit and asset requirements for issuers, lock-in periods for promoter shares, minimum 90% subscription threshold and proportionate allotment to retail and non-anchor investors.
This document discusses the different types of directors under the Companies Act 2013 in India. It defines directors as persons elected by shareholders to direct and manage company affairs. There are executive directors who are involved in day-to-day operations, non-executive directors who act as advisors, additional directors who are temporary appointments until the next AGM, alternate directors who fill in for unavailable directors, independent directors who bring outside perspectives, and nominee directors nominated by financial institutions. The document also outlines requirements for women directors, small shareholder directors, shadow directors, and having a resident Indian director.
The Supreme Court ordered Eicher Motors to compensate investor Adesh Kaur after she was a victim of fraud. In 2012, an impersonator changed Kaur's address on file and had her shares transferred. When Kaur did not receive dividends in 2013, she discovered the fraud. Lower courts ruled in her favor but orders were overturned until the Supreme Court ruled Eicher Motors was responsible for rectifying its records and purchasing replacement shares for Kaur within two weeks, valued at approximately 2.19 crore rupees. The case established companies are liable for acts of agents and must make shareholders whole after fraud to uphold investor protection.
The document discusses Yes Bank's mis-selling of Additional Tier 1 (AT-1) bonds, which led to penalties from the Securities and Exchange Board of India (SEBI). It provides context on Basel III capital requirements, AT-1 bonds, and the 2020 Yes Bank crisis. SEBI investigated complaints that Yes Bank misrepresented the risk of AT-1 bonds and sold them aggressively to retail investors like senior citizens without proper risk profiling. It found that Yes Bank described the bonds as "super fixed deposits" without explaining the risks, and fined the bank and three executives for violating rules against fraudulent practices.
A buyback, also known as a share repurchase, occurs when a company buys back its own outstanding shares from investors to reduce the number of shares available on the open market. Companies may do this to increase share value for remaining investors by reducing supply, or to prevent other shareholders from gaining control. The document outlines the legal provisions and process for companies in India to conduct a buyback according to the Companies Act and SEBI regulations, including establishing a capital redemption reserve and restrictions on further share issues. It provides examples of companies that have announced buybacks during the COVID-19 pandemic.
1. Bonus shares are additional shares given to existing shareholders without cost based on their current shareholding. Companies issue bonus shares to capitalize accumulated profits or reserves without needing to pay dividends.
2. Companies may issue bonus shares when they have large reserves but cannot declare dividends due to lack of cash, or to avoid demanding high future dividend rates from shareholders. Bonus shares are issued in a set proportion to existing shares based on a bonus ratio.
3. The process of bonus issue involves board approval, shareholder approval, fixing a record date, allotting shares, and updating shareholder records. Bonus shares benefit both investors through increased holdings and companies through conserving cash.
This presentation summarizes Sections 185, 186 and 187 of the Companies Act 2013 related to loans to directors, loans and investments by companies, and related party transactions.
Section 185 prohibits companies from giving loans, guarantees or security to directors and firms where directors are partners. Section 186 restricts loans/investments/guarantees by companies exceeding 60% of share capital and reserves. Section 187 requires board and shareholder approval for related party transactions above certain thresholds. The document outlines key provisions, exceptions, and consequences of non-compliance for each section.
This document provides an overview of company incorporation in India, including:
1) The different categories of companies and their basic requirements, such as a minimum of seven subscribers for a public limited company and two subscribers for a private limited company.
2) The brief procedure for company incorporation, which involves applying for director identification numbers, selecting a company name and type, drafting legal documents, paying fees, and obtaining certificates of incorporation and commencement of business.
3) The list of documents required for incorporation under the SPICe process, including identity proofs, address proofs, and signed forms for directors and shareholders.
4) An explanation of the SPICe+ e-form and name reservation process. Once
The document summarizes the key aspects of Secretarial Standard 1 regarding meetings of the board of directors. It outlines requirements for convening board meetings such as minimum notice period, quorum, and frequency of meetings. It also discusses procedures that must be followed including maintenance of attendance registers, drafting and circulation of minutes, and other governance matters related to board meetings. The standard aims to integrate and standardize diverse secretarial practices across companies.
Cyrus Mistry filed a case against Tata Sons for oppression and mismanagement after being removed as chairman in 2016. The NCLT initially dismissed the case, but the NCLAT reversed this decision and reinstated Mistry as chairman. However, the Supreme Court ultimately ruled in favor of Tata Sons, finding that Mistry's removal was justified and not oppressive to minority shareholders. The legal battle provided clarification on the definition and application of oppression under Section 241 of the Companies Act.
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The presentation deals with the concept of Right to Default Bail laid down under Section 167 of the Code of Criminal Procedure 1973 and Section 187 of Bharatiya Nagarik Suraksha Sanhita 2023.
Reviewing contracts swiftly and efficiently is crucial for any organization. It ensures compliance, reduces risks, and keeps business operations running smoothly.
2. 2
Concept of Virtual Digital Asset (VDA)
Meaning of Virtual Digital Asset (VDA)
Scheme of Taxation of VDA on or After 01-4-2022
Deduction of TDS under section 194S
Taxability of Cryptocurrency under the GST Law
Taxation of Virtual Digital Assets
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3. 3
Concept of Virtual Digital Asset (VDA)
How everything started ?
18th August
2008 : Domain
name
“bitcoin.org”
registered
31st October
2008 : Bitcoin
Design paper
Published
9th November
2008 : Bitcoin
Project
Registered
@sourceforge.in
3rd January
2009 : Genesis
Block was
Established
9th January 2009 : Bitcoin
v0.1 was released and
Announced on the
Cryptography mailing list
12th January
2009 : First
Bitcoin
Transaction, in
block 170, done
from Satoshi to
Hal Finney.
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4. 4
CRYPTOCURRENCY
• Imagine a Situation where the Money has no physical Presence, No Bank acting as mint
and just a Virtual Digital Currency which can be easily transferred between the
Individuals on their own without anyone regulating the same. This is the Concept of
Cryptocurrency (PEER TO PEER MODEL).
• The idea of 1st Cryptocurrency was coined by a person with pseudo name i.e. Santoshi
Nakamoto. He presented his very first idea of cryptocurrency through a “White Paper”
in which he explained the underlying concept of Bitcoin and the technology backing it.
Based on the white paper that Cryptocurrency derives some inherent value.
• Cryptocurrency has no intrinsic Value Just a news in favour and against is enough to
manipulate its Value. Thus we can interpret that it is a bubble which can burst any day
leaving People’s investment falling to zero or making them millionaire in a fraction of
moment.
• A cryptocurrency is a form of digital asset based on a network that is distributed across a
large number of computers. This decentralized structure allows them to exist outside the
control of governments and central authorities.
• Bitcoin is the type of Cryptocurrency
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5. 5
• Now the question arise how can you not spend a bitcoin without any third party
authorising the same ?
Answer is “BLOCKCHAIN”.
Blockchain is essentially a distributed database of records or public ledger of all
transactions or Digital events that have been executed and shared among
participating parties.
• In Cryptocurrency, all the information related to the transaction is captured securely by
using an algorithm, protected cryptographically, and the data is stored and verified across
the entire network of the Computer. In other words, instead of having a centralized data
base of the third Party such as banks to certify the transaction took place. Bitcoin uses
blockchain technology across a Decentralized network of Computers to securely verify,
confirm, and record each transaction. Since data is stored in a decentralized manner across
a wide network, there is no signal point of failure. This makes blockchain more secure and
less prone to fraud, tempering or general system failure then keeping them is a Single
centralized Location.
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7. 7
Mr. A Mr. B
5 Bitcoins
Bitcoin Network who
maintains the gigantic
Public Ledger
• The Message is sent
to the Bitcoin
Networking
Encrypted Format.
• Bitcoin network
requires a Unique
signature on Each
Message so that the
True Owner can be
Identified.
• This happens
through Hash
Cryptography.
• Anyone can become
part of this network
and they are called as
MINERS.
• These miners will mine
the bitcoin. Till date
tentatively 19 billion
bitcoins have been
mined.
• They will have the
Power of the CPU to
solve the encrypted
transactions and post it
to the public ledger.
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9. 9
WHAT IS VIRTUAL ASSET AND VIRTUAL DIGITAL
ASSET?
A virtual Asset is a Digital representation of an item that has value in a Specific
environment. This medium of Exchange or property can be digitally traded, transferred or
used for payment or Investment purposes. The most common example of virtual Asset is
Virtual Currency Such as Bitcoin, Litecoin, Ethereum or Dogecoin. Gaming tokens, Non-
Fungible Tokens (NFTs) etc.
A virtual digital asset is any information, code, number, or token that is generated
through cryptographic procedures or otherwise, by whatever name it is called. This provides
a digital representation of value and is exchanged with or without consideration, with the
promise or representation that it has inherent value, or that it serves as a store of value or a
unit of account. This definition also includes its use in any financial transaction.
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10. 10
TYPES OF VIRTUAL DIGITAL ASSETS
We can Classify the VDA on the Basis of their functions
Payment Tokens : They can be used as a medium of exchange or good or
Services and also as store of Value.
Property Token : These Represent rights in Immovable Property or Movable
Property
Utility Token : Utility Tokens Facilitate the exchange of or access to specific
goods or Services etc.
Security Tokens : Crypto-Asset which fulfil the characteristics of
‘SECURITIES’ as defined under the securities laws of India. India does not
recognize VDA as securities.
Note : This list can be as much long as it can be since no fixed type can be Given to VDA’s
due to their ever evolving and continuous dynamism in the or underlying technology called
as blockchain.
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11. 11
How Can One Invest In VDAs?
There are several platforms that help you invest in VDAs. Some of them include :
Coinbase : has consistently ranked among the top cryptocurrency platforms. Although a lot of
Coinbase users began staking early, it’s never too late to join in. The idea is straightforward — you
register for a Coinbase account, keep your digital currency in the wallet, and do tasks for rewards.
CoinDCX: The goal of CoinDCX, the most valuable cryptocurrency investment software in India, is to
make cryptocurrency easily accessible. With solutions centred around cryptocurrency trading,
investing, and education since its establishment in 2018, CoinDCX has addressed many issues that
the Indian crypto community faced.
WazirX: You can buy and sell USDT for Fiat directly with other buyers and sellers using WazirX P2P.
It is always safe and legal.
OpenSea: Users can buy and trade non-fungible tokens on OpenSea, a decentralised marketplace.
The NFT exchange, which was established in 2017, started as a market for CryptoKitties but has
already extended beyond collectables.
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12. 12
Important taxonomy under VDA by the Finance Act,
2022
Crypto Asset
Distributed Ledger Technology (DLT)
Blockchain
Non Fungible Token (NFT)
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13. 13
Meaning of Virtual Digital Asset (VDA)
Section 2(47A) “virtual digital asset” means—
(a) any information or code or number or token (not being Indian currency or foreign
currency), generated through cryptographic means or otherwise, by whatever name called,
providing a digital representation of value exchanged with or without consideration, with the
promise or representation of having inherent value, or functions as a store of value or a unit
of account including its use in any financial transaction or investment, but not limited to
investment scheme; and can be transferred, stored or traded electronically;
(b) Non-fungible Token (NFT) or any other token of similar nature, by whatever name called;
(c) Any other digital asset, as the Central Government may, by notification in the Official
Gazette specify.
Provided that the Central Government may, by notification in the official Gazette, exclude
any digital asset from the definition of VDA subject to such conditions as may be specified
therein.
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14. 14
Explanation : For the Purposes of this clause,
(a) “non- fungible token” means such digital assets as the Central Government may, by
notification in the Official Gazette, specify ;
(b) The expression “Currency”, “Foreign Currency” and “Indian Currency” shall have the
same meanings as respectively assigned to them in clauses (h), (m) and (q) of section 2 of
the Foreign Exchange Management Act, 1999.
The above definition provides an exhaustive meaning of the term VDA. It covers the
following three classes of VDA:
a) Information or Code or Number or Token generated through cryptographic Means;
b) Non-Fungible token;
c) Any Other Digital Asset;
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15. 15
Inclusions in VDA
1. Information or Code or
Number or Token
generated through
cryptographic Means;
2. Non-Fungible token;
3. Any Other Digital Asset
Exclusion in VDA
1. Indian Currency
2. Central Bank Digital
Currency (CBDC)
3. Foreign Currency
4. Notified Digital Asset
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16. 16
NON-FUNGIBLE TOKEN
“Fungible” means something capable of substitution. Fungibility is the property of a good or a
commodity that makes it replaceable by another identical item.
For Example : Trade one Cryptocurrency for another or fiat currency, and you will have precisely
the same value.
‘Non-Fungible’ means that it is unique and cannot be replaced with something else. NFT’s are
associated with digital files such as photos, videos, and Audio. As token is uniquely identifiable,
NFTs differ from blockchain cryptocurrencies.
As per Notification No. 75/2022, dated 30th June 2022, the central government hereby specifies a
token which qualifies to be a virtual digital asset as non-fungible token within the meaning of sub-
clause (a) of clause (47A) of section 2 of the Act but shall not include a non-fungible token whose
transfer results in transfer of ownership of underlying tangible assets and the transfer of
Ownership of such underlying tangible asset is legally enforceable.
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18. 18
Fungible Means
• Replaceable
• Exchangeable
• Identifiable
Non-Fungible Means
• Non- Replaceable
• Non-
Exchangeable
• Unique (Only the
copy is available in
the entire World)
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19. 19
Amitabh Bachchan emerged as one of the first
major Indian celebrities to announce his
series of non-fungible token (NFT) in
November 2021. Excited fans of the
Bollywood actor purchased digital collectibles
from his NFT series for a total amount of
$966,000 (approximately Rs. 7.18 crore).
More Bollywood celebrities are entering the
NFT space after Bachchan
Winkelmann, a digital artist more commonly known by the
handle Beeple, sold “Everydays: The First 5000 Days,” an
NFT-linked digital collage at Christie’s. The work brought
in $69.3 million at the revered British auction house.
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20. 20
Scheme of Taxation of VDA on or After 01-04-2022
‘The Finance Act, 2022 has inserted a new section 115BBH with effect from 1st Aril, 2022, to
tax the Income arising from the transfer of Virtual Digital Asset. The Section 115BBH reads
as under:
:-
(1) Where the total income of an assessee includes any income from the transfer of any virtual
digital asset, the income-tax payable shall be the aggregate of––
(a) the amount of income-tax calculated on the income from transfer of such virtual digital
asset at the rate of thirty per cent (30%).; and
(b) the amount of income-tax with which the assessee would have been chargeable, had the
total income of the assessee been reduced by the income referred to in clause (a).
(2) Notwithstanding anything contained in any other provision of this Act,––
(a) no deduction in respect of any expenditure (other than cost of acquisition) or allowance or
set off of any loss shall be allowed to the assessee under any provision of this Act in computing
the income referred to in clause (a) of sub-section (1); and
(b) no set off of loss from transfer of the virtual digital asset computed under clause (a) of sub-
section (1) shall be allowed against income computed under any other provision of this Act to
the assessee and such loss shall not be allowed to be carried forward to succeeding assessment
years.
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21. 21
Parameters Laid out in Sub Clause (C) of Section 2(47A)
(c) Any other digital asset, as the Central Government may, by notification in the Official
Gazette specify
Provided that Central Government may by notification in the official gazette, exclude any
digital asset from the definition of Virtual digital assets which shall be excluded from the
definition of virtual digital asset :
As per Notification No. 74/2022, dated 30-06-2022, the central Government hereby notifies
following digital asset which shall be excluded from the definition of Virtual Digital Asset:
1. Gift card or Voucher, being a record that may be used to obtain goods or services or a
discount on goods or services.
2. Mileage Points, rewards points or loyalty card, being a record given without direct
monetary consideration under an award, reward, benefit, loyalty, incentive, rebate or
promotional program that may be used or redeemed only to obtain goods or services or a
discount on goods or services;
3. Subscription to websites or platforms or applications.
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22. 22
DIRECT TAX IMPLECATIONS – PRE BUDGET 2022
Nature of Virtual Digital Asset Before Union Budget 2022
• If taxpayer is trading in VDA as stock in trade the income was Categorised as business
Income.
• If taxpayer is holding VDA as investment then gains arising from the transfer of
virtual digital assets as treated as capital Gains, their further classification into short-
term or Long term gains would depend upon the period of holding of such assets.
• If a virtual asset is held for more than 36 months from the date of purchase, it will be
considered a long-term capital asset, otherwise a short-term capital asset.
Particulars Amount
Full value of
Consideration
XXX
Less :
Cost of acquisition
(XXX)
LTCG/STCG XXX
Particulars Amount
Profit XXX
Less:
Expense
(XXX)
Net Profit/Loss XXX
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23. 23
DIRECT TAX IMPLECATIONS – POST BUDGET 2022
TAX Rates:
• As per section 115BBH, the income arising from the transfer of VDA shall be taxed at
the rate of 30% plus applicable surcharge and
• Further, no deductions allowed apart from the cost of acquisition.
• Tax Shall be charged irrespective of :
a. Income is Below the threshold limit or
b. Assesses has sustained loss
IS THE REGIME SIMILAR TO TAXATION OF WINNING FROM GAMES ?
This is similar to the rate of tax regime that currently exists with respect to taxation of
winnings from games u/s 115BBH @ 30%. Prior to this regime, it was possible to
categorize transactions as either trading income and claim expenses or claim long term
capital gain rate of 20% based on the facts of the case.
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24. 24
WHAT IS TRANSFER IN RLATION TO VDA
The income from VDA shall be taxable under section 115BBH only if it arises on the transfer
of VDA. The Word “transfer” is defined under section 2(47) of the Act in relation to Capital
Assets.
As VDA can be held as a trading asset or capital asset, it could be argued that section
115BBH would apply only in the case of transfer of VDA held as a capital Asset. To avoid
any controversy on this aspect, Sub Section (3) of section 115BBH provides that the
definition of transfer shall apply to any VDA, whether capital asset or not.
The term “transfer” has been defined under section 2(47) in an inclusive manner. This
means that the term shall be deemed to include all transactions prescribed below besides
what is otherwise understood as transfer in common parlance :
a). Transfer by way of Sale
b). Transfer by way of Exchange
c). Transfer by way of relinquishment
d). Transfer by way of extinguishment of Rights
e). Transfer by way of compulsory acquisition
f). Transfer by way of conversion into Stock-in-trade
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Below listed transactions are not regarded as a transfer to compute the capital
gains. Any profit charges from these transactions is not chargeable to tax under
section 115BBH :
a)Lending of Virtual Digital assets.
b)Any distribution of asset in kind by a company to its
shareholders at the time of liquidation is not treated as
transfer of an asset by the company. However, in this case ,
the shareholders are liable to pay tax if any capital gain
arises therefrom. (Section 46)
c) Transfer in a mode listed in section 47
d)Mining of VDA
e)Transfer of VDA without consideration
f) Transfer by way of Donation of VDA
g)VDAs lost or stolen
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Transfer by way of Exchange : All crypto exchanges allows buyer to buy a cryptocurrency in
exchange for another cryptocurrency.
Example : Mr. A buys Bitcoin from Mr. B in exchange for Ethereum. In this Case, there is a
transfer of VDA from both sides - transfer of Bitcoin by Mr. B and transfer of Ethereum by Mr. A.
Hence, tax liability would arise in the hands of Mr. A as well as Mr. B.
Transfer by way of conversion into stock-in-trade : VDAs held as inventory of a business are
converted into capital assets, its fair market value as on the date of its conversion shall be taxable
as business income under section 28 (via).
Lending of Cryptocurrencies: Most exchanges allow the investor to lend their holding of
Cryptocurrencies to earn interest. Such Lending of Cryptocurrencies cannot be termed as transfer
as the title of the asset is not transferred to the borrower. The amount of interest earned by the
investor from such lending is credited in the same Cryptocurrency he has lent. Such interest
income should be taxed under the head of income from other sources or PGBP, as the case may be,
at the applicable tax rate and not at the rate Specified under section 115BBH.
Mining of VDA: Creating a new cryptocurrency via mining can conceptually give rise to a taxable
event when the miner receives the unit. Most countries consider the receipt of a mined unit of
virtual currency to be the first taxable event. However , a significant proportion of countries also
indicated that no tax is payable until the disposal of the asset .
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DIRECT TAX IMLICATIONS - POST BUDGET 2022
No deductions to be allowed for any expenditure or allowance :-
• Section 115BBH provides that no deduction in resect of any expenditure (other than Cost of
acquisition) or allowance set off any loss shall be allowed to the assessee under any provision of
this Act in computing the income referred to in section 115BBH.
• Infrastructure Costs, set up costs, electricity costs while mining VDAs are not allowed to be
considered as deductible for the purposes of calculation of cost of acquisitions.
• Common overhead expenses shall not be allowed as deduction.
No Inter Head/Intra Head set Off allowed and Carry forward of Losses allowed :
• Section 115BBH(2)(b) provides that no set-off of loss from the transfer of the virtual digital
asset computed shall be allowed against income computed under any other provision of this Act
to the assessee, and such loss shall not be allowed to be carried forward to succeeding
assessment year.
• Loss from transfer of VDA is not eligible for sett off against any income including income from
transfer of any other VDA. Each VDA in an investor’s portfolio will be treated as separate asset
class.
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DIRECT TAX IMLICATIONS - POST BUDGET 2022
Mr. A (Indian Resident) has purchased 50,000 USDT (Cryptocurrency) at Rs. 67 each on
16 July 2018. He transferred 20,000 USDT in the previous year 2021-2022, and the
remaining in 2022-23. What are the tax implications ?
Sales consideration less cost of acquisition shall be taxable. No set off and carry forward allowed.
Qty. Sold on Consideration Brokerage Gain/Loss Tax to be
aid
Tax
Rate
Scenario
20,000 1/3/2022 18,00,000 2000 2,80,929 56,185* 20% Pre Budget 2022
20,000 1/4/2022 10,00,000 2500 -340000 NIL 30% Loss would not
be
carried forward
10,000 31/03/2023 15,00,000 3000 8,30,000 2,49,000 30% Loss of Rs.3.4
lakhs can be set
off
only if it same
crypto
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DIRECT TAX IMLICATIONS - POST BUDGET 2022
Mr. A has purchased 1500 Bitcoins and1500 Ethereum at Rs.1,000/ each on 16 July 2020. He sold all Bitcoin
and Ethereum in the previous year 2022-23. The tax shall be computed as under.
Qty. Sold on Consideration Brokerage
Taxable
Profit or
(Loss)
Tax
Rate
1500
(Bitcoin)
1/4/2022 3,00,000 750 -1200000 NIL and no set
off and carry
forward of
loss allowed
1500
(Ethereu
m)
31/3/2023 17,00,000 1250 2,00,000 30%
• No deduction shall be allowed for the brokerage, Sale consideration less cost of acquisition shall be taxable @
30% plus applicable surcharge and cess.
• The loss from the sale of Bitcoin done on 01-04-2022 cannot be set-off against the gain on sale of Bitcoin on
31-03-2023.
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DIRECT TAX IMLICATIONS - POST BUDGET 2022
Section 56(2)(x) - where any person receives, in any previous year, from any person or persons on or
after the 1st day of April, 2017,
(c) any property, other than immovable property,-
I. Without consideration, the aggregate FMV of which exceeds Rs.50,000 - Whole of aggregate FMV
II. For a consideration which is less than the aggregate fair market value of the property by an amount
exceeding Rs.50,000 - The aggregate FMV as exceeds such consideration
Explanation.—For the purposes of this clause-
(b) the expression "property" shall have the same meaning as assigned to it in clause (d) of the
Explanation to clause (vii) and shall include virtual digital asset.
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DIRECT TAX IMLICATIONS - POST BUDGET 2022
NOT ALL GIFTS ARE TAXABLE
Section 56(2)(x) provisions certain exemptions in case of receipt of property
(i ) From a relative,
(ii) Under will or inheritance,
(iii) On the occasion of marriage of the individual
(iv) In contemplation of death of the buyer
(v) From any trust or charitable institution registered under12AA or 12AB, etc.
AIR DROP TOKENS
• In the crypto-asset markets, it is a common for some crypto projects to airdrop their tokens. Airdrop can
be understood as a crypto project sending free tokens to their communities in a bid to encourage adoption
and in turn reward them.
• In such case, if the value of airdropped VDA exceeds INR 50,000 then it could be taxable in the hands of
the recipient.
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WITHHOLDING PROVISIONS (TDS)
[Applicable from 1ST JULY, 2022]
DEDUCTEE
DEDUCTOR RATE OF TAX
Any person responsible
for paying any sum by
way of consideration for
the transfer of a virtual
digital asset is required
to deduct tax at source.
Tax is required to be
deducted under this
provision if the amount
is payable to a resident
person.
Tax is required to be deducted at the rate of 1%
of the consideration with no surcharge and cess.
If the deductee does not furnish his PAN to the
deductor, the tax shall be deducted at the rate of
20% as prescribed under Section 206AA.
However, the provisions of Section 206AB shall
not apply in the case of a specified person. Thus,
even if the deductee has not furnished the return
of income for a specified period, the tax shall be
deducted at the rate prescribed under this
provision and not as specified in Section 206AB,
if the payer is a specified person. If the payer is
not a specified person, the tax shall be decucted
as per Section 206AB if the payee is a non-filer.
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TIME OF
DEDUCTION
AMOUNT ON WHICH TAX
IS TO BE DEDUCTED
The tax shall be deducted at
the time of payment by any
mode or at the time of credit
of such sum to the account of
the resident ,which ever is
earlier.
Tax is required to be deducted from the gross amount
of consideration paid to the resident person for the
transfer of virtual digital assets. However, in the
following cases, before releasing the consideration,
the person responsible shall ensure that tax has been
paid in respect of such consideration for the transfer
of virtual digital asset:
a. Where Consideration is wholly in kind.
b. Where a transaction is in exchange for another
Virtual Digital Asset, there is no part in cash; or
c. Where consideration is partly in cash and partly
in kind, but the part in cash is not sufficient to
meet the liability of deduction of tax in respect of
whole of such transfer.
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EXEMPTION FROM TDS
Consideration below INR 10,000
No tax shall be deducted under this provision if the consideration is payable by any
person (other than a specified person) and its aggregate value does not exceed Rs.
10,000 during the financial Year.
Consideration below INR 50,000
No tax shall be deducted under this provision if the consideration is payable by the
following specified persons and its aggregate value does not exceed Rs. 50,000 during
the financial Year :
✔An individual or a HUF, whose total sales, gross receipts or turnover does not exceed
Rs.1 crore in case of business or Rs.50 lakh in case of a profession, during the financial
year immediately preceding the financial year in which such virtual digital asset is
transferred;
✔ An individual or a HUF who does not have any income under the head profits and
gains of business or profession.
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Category of payer
Threshold limit of turnover or gross
receipt
Threshold limit of
consideration for TDS
applicability
Company NIL Rs. 10,000
Firm or LLP NIL Rs. 10,000
Individual
Upto 1 Crore (for business)
Upto Rs. 50 lakhs (for profession)
(also includes an individual not engaged in any
business or profession) Rs. 50,000
Any other individual NIL Rs. 10,000
HUF
Upto 1 Crore (for business)
Upto Rs. 50 lakhs (for profession)
(also includes an individual not engaged in any
business or profession) Rs. 50,000
Any other HUF NIL Rs. 10,000
Any other Person NIL Rs. 10,000
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Overriding effect of Section 194S
✔Where a transaction is subject to TDS under section 194-0 and section 194S, tax shall
be deducted under section 194S.
✔Further, a transaction in respect of which tax has been deducted under this provision,
no tax shall be deducted or collected under any other provisions.
For Example : If an architect receives bitcoin from his client as consideration for services,
then the architect shall be liable to deduct tax under section 194S as he is giving the
consideration in the form of architecture services to the client transferring the VDA and,
on the other side, the client may also be liable to deduct tax under section 194J as he is
making payment in form of VDA for services provided by the architect.
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NO TAN IS MANDATORY FOR A PERSON RESPONSIBLE FOR
PAYING CONSIDERATION
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Specified person as defined above does not require to apply or obtain a Tax Deduction or Collection
Account Number (TAN) for deducting tax under this provisions [Section 194S(2) ].
However, such deductor shall be required to quote his PAN in challan and TDS statement as
required by sub-section (5B) of section 139 A.
NO TDS ON GIFT OR LENDING OF VDAs
Section 194S applies when the consideration is paid in respect of the transfer of VDAs. As gift or
lending of VDA does not fall under the definition of transfer, no tax shall be deducted in such case.
OTHERS
If any difficulties arises in giving effect to the provision of this section , the board may, with the
prior approval of the Central Government, issue guidelines to remove the difficulty. Every
Guideline issued by the Board shall be laid before each House of parliament and shall be binding on
the income-tax authorities and on the person responsible for paying the consideration on the
transfer of such virtual Digital Asset [section 194s(6)/(7) ].
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SCENARIO 1 - PEER TO PEER TRANSACTION
• Buyer is required to deduct tax u/s 194S of the Act.
SCENARIO 2 – IF TRANSACTION TAKES PLACE THROUGH
EXCHANGE
• Case 1 - If VDA not owned by the Exchange e.g. Brokers owns the VDA
• Case 2 – If VDA owned by Exchange
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BUYER EXCHANGE SELLER
VDA will be transferred to the buyer
Payment Rs.
1,000/-
Payment of Rs. 990 to the
seller TDS of Rs. 10 will be
paid to the Government
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BUYER EXCHANGE SELLER
VDA will be transferred to the buyer
Payment Rs.
1,000/-
BROKER
EXCHANGE
P0 P1
If there is a written agreement between the exchange and the
broker, exchange will deduct the tax and remit the same to the
government.
Exchange shall furnish a quarterly statement in FORM NO. 26Q
for all such transactions.
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OPTION-2
Exchange can also deduct TDS and
file TDS return in Form 26QF
ITR- required to be filed
VDA buyer will not be considered as
assessee in default u/s 201 of the Act.
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SCENARIO 3: TRANSACTION IN KIND
A E B
99 Ethereum
100 Bitcoin
99 Ethereum
99 Bitcoin
Option 1 –
• Exchange deduct TDS of both the parties and file TDS
return.
• 1% Ethereum= X* INR= A-paid to the government
• 1% Bitcoin= Y*INR= B-paid to the government
Option 2 –
Both A & B shall pay TDS to the government @ 1%-
practically impossible
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SOME PRACTICAL ILLUSTRATIONS RELATING TO VDA
Solution : TAX on Income from VDA is Rs.
14,040/-. No deduction u/s 194S as the
consideration paid during the FY does not exceed
Rs. 50,000/- in case of specified person or Rs.
10,000/- in any case.
Illustration 1 Column1
Particulars of Income of individual
Income from Salary Rs. 1,80,000
Interest Income Rs. 20,000
Income from transfer of VDA Rs. 45,000
Compute Tax
Illustration 2 Column1
Particulars of Income of individual
Income from Business Loss of Rs.10,00,000
Interest Income Rs. 50,000
Income from transfer of VDA Rs. 2,50,000
Compute Tax
Solution : Tax on Income from VDA is Rs.
78000/-. Loss from business can be set off from
income from other sources. Thus Loss of Rs.
9,50,000/- will be carried forward to next year.
Whether loss from business can be set off against
the income from VDA.
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Illustration 4 .
In the following circumstances, whether Section 44AD is
applicable and income can be returned under estimated
income scheme?
Income from Business Rs. 1,90,00,000
Income from transfer of VDA Rs. 11,00,000
Section 44AD deals with Presumptive Taxation scheme for an
eligible assessee engaged in eligible business.
Income will be computed at rate of 6%/8% of the turnover or
gross receipts. Eligible assessee and eligible business is defined
under the Section 44AD of the Act.
We are considering the possibility of holding VDA as capital
asset, As far as taxation is concerned , Income
from transfer of VDA is chargeable flat at rate of 30% as per
Section 115BBH, therefore section 44AD will
not be applicable over it.
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TAXABILITY OF CRYTOCURRENCY UNDER THE GST LAW
The taxation of cryptocurrency and other digital assets has been a point of discussion. The
GST Council is planning to levy a 28% GST on cryptocurrency and digital assets. This idea is
to tax cryptocurrency just like income from lottery, betting, casinos, or horse racing.
The GST Act does not define cryptocurrency or digital assets.
However, as per the Finance Bill 2022, a Virtual Digital Asset i.e. VDA means any
information, code, number, or token generated through cryptographic means providing a
digital representation of value exchanged and can be used in any financial transaction.
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• Now the Question arises whether Cryptocurrency is Goods or Services ?
Answer : To understand if the Cryptocurrency falls within the meaning of “Goods or
Services” under the GST laws.
Treatment of transaction
- Place of Supply - Rate of TAX
- Valuation - Reverse Charge etc.
- Time of Supply
MEANING OF GOODS; Section 2(52) of CGST Act 2017
“goods” means every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached to or forming part of
the land which are agreed to be severed before supply or under a contract of supply”.
MEANING OF SERVICES; Section 2(102) of CGST Act 2017
“Services” means anything other than Goods, Money and Securities but includes
activities relating to the use of money or its conversion by cash or by any other mode,
from one form, Currency, or denomination , to another form, currency or denominated for
which a separate consideration is charged.
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Money means a legal tender, foreign currency, cheque, electronic remittance, or any other
instrument recognized by RBI to settle an obligation. Securities mean bonds, debentures, shares,
derivatives, government securities, or instruments of similar nature.
As per definition Virtual Digital Assets (VDA) cannot be classified as money or securities. Further,
it can also not be classified as Service as per GST Act. However, considering it as movable property,
it can be classified as Goods as per GST.
However the exemptions list under schedule III of GST Act does not cover the sale of
cryptocurrency, NFT or digital assets. Hence it is not a transaction exempt from GST. Therefore, the
sale of crypto, NFT, and VDA is taxable under the GST Act.
Is crypto exchange liable to pay GST on its services?
Yes. Services provided by crypto exchanges are taxable services under GST. Thus, the crypto
exchanges are liable to collect GST from the traders and deposit the same with the GST department.
GST is included in the trading fee that is added to the buying price of ether, bitcoin, ripple, etc. In
the case of a crypto exchange located outside India, the place of supply of service is the location of
the service recipient i.e. India. Therefore, the service recipient i.e. crypto trader is liable to pay GST
on a reverse charge basis.
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Who needs to pay GST on supply of cryptocurrency and digital assets?
The seller of cryptocurrency or digital assets must collect GST from the buyer and deposit it
with the government. There is no defined HSN Code and GST Rate for digital assets. Thus,
HSN Code 960899 under the category ‘others’ with a tax rate of 18% can be used for
reporting the sale of crypto.
The seller is liable to register under GST Act if the Aggregate Turnover exceeds the threshold
limit of INR 40 lacs during the financial year. Once the seller of crypto registers under GST,
they must collect and pay GST on each sale transaction.
The seller can claim Input Tax Credit of the following:
GST paid on the purchase of cryptocurrency, NFT, VDA
GST paid on services used for the business of crypto trading such as consultancy services,
software expenses, broker commission, mining cost, etc.
The GST department has not yet clarified the taxability of cryptocurrency
and other digital assets. Crypto traders and crypto exchanges should
comply with the existing GST provisions until the GST Council clarifies
the taxability of cryptocurrency.
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CONSLUSION
Cryptocurrency falls under the definition of goods as per the GST Act. Thus, the sale of crypto is
taxable under GST. Further, the sale of cryptocurrency or digital assets is not covered under the
list of GST exemptions. Thus, GST is applicable to the sale of cryptocurrency in India.
Cryptocurrency trading i.e. sale of crypto is taxable under the GST Act since it is not specifically
exempted from GST. Further, the crypto exchanges are liable to pay GST on their services. They
include the GST in the trading fee charged to the crypto traders. Therefore, crypto traders are
liable to pay GST on crypto trading.
The seller of cryptocurrency or digital assets must collect GST from the buyer and pay it to the
government. The seller is liable to register under GST Act if the aggregate turnover exceeds the
threshold limit of INR 40 lacs during the financial year. Once the seller of crypto registers under
GST, they must collect and pay GST on each sale transaction. They can claim Input Tax Credit of
GST paid on the purchase of crypto or other related services.
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Some Global And Indian VDAs
Global VDAs
Sandbox: Players can create, own, and monetise their game experiences in the virtual world known as The Sandbox using the Ethereum
blockchain. By giving developers of existing games like Roblox and Minecraft genuine ownership of their works in the form of non-
fungible tokens (NFTs), they hope to upend the status quo and encourage their engagement in the ecosystem.
Indie’s: As the top meta brand, Indie’s is working to build a Massive Multiplayer Online Open-Ended Soul based Non-Game Play2Earn
Genre Virtual World/Metaverse where 11,111 Indie’s guild members can purchase a virtual plot in the New Kashi, IndiVerse, using their
special Indie’s NFTs.
Doodles:Doodles has evolved into one of the most significant and cherished NFT initiatives ever. The collection of vibrant line-drawn
characters has practically taken over the world and is one of the most well-liked and successful PFP (profile-picture) collections.
CryptoPunks: CryptoPunks, created by Larva Labs, is a two-person development company. They have experience working on a wide
range of projects, including mobile games and utilities, online infrastructure, digital design, and art. The team created a pixelated
character generator inspired by the London punk scene, cyberpunk literature, and films.
A few of the global VDAs include Bored ape, Decentraland, Bitcoin, and Ether.
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Indian VDAs
Indie’s NFT: Indie’s Guild is a closed virtual world community made up of 11,111 NFT Avatars, which are individually created digital
valuables. These have been designed and developed by Inditex LLP, with funding from StraightCircle VC. They are introducing their
brand-new, 11,111-piece NFT collection. Every Indi is a distinct VRactive avatar that serves as the heart of the online community.
Digital Prateek’s Jorr Token: The fundamental goal of this community-driven NFT project is to create an outstanding community
(JorrParivar) around the realities of branding, marketing, and motivation. It consists of 1,254 tokens centered around 22 original
intellectual properties that Digital Pratik owns and mints.
What is e-Rupi ?
Is it a Cryptocurrency ?
Answer : No
E-Rupi is a Digital Prepaid Voucher that is paid for by the government. In terms of Technology, e-rupi is different from
cryptocurrencies, as the digital tokens are based on the blockchain technology. The purpose of cryptocurrency and e-RUPI
is the same: to reach the unbanked population. It is being issued in the same denominations as the paper currency and
coins. But the approach is different. "Cryptocurrencies are distributed and a decentralised medium of exchange, whereas
e-RUPI is government regulated.
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Future Of VDAs
The technology for securing and storing VDA related-data is still in its infancy stage. In the eyes of
the Indian public, they are quickly becoming a gateway for wealth development. According to
CREBACO*, there is an estimated $15 Bn market value for digital assets in India. This is indicative of
the fact that the country has seen notable growth in this area.
The recent inclusion of clause (47A), under Section 2 of the Income Tax Act, in the Finance Bill 2022
has only increased the credibility of digital assets, thus supporting the use of digital assets. This has
increased the confidence of potential stakeholders and customers to invest in cryptocurrencies and
other virtual digital assets such as NFT.
The digital asset economy will continue to change with the change in business tactics and
consumption habits in the years to come. There are a few crucial steps, such as capability and skills
building, that can be taken right away to capitalise and shape this new era.
CREBACO* is short for 'Credit Rating for Exchanges Blockchains and Coin Offerings' which
comprises experts who have experience of working with Blockchain and Crytocurrency.
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