This week has been eventful in the global crypto space. From changes in regulatory practices to strategic moves by major companies, let's examine the most significant news.
World Liberty Financial Plans 'Strategic Reserve'
World Liberty Financial, a DeFi project backed by Donald Trump and his family, announced plans to establish a 'strategic reserve' of purchased tokens. Co-founder Chase Herro confirmed this in an interview with Bloomberg. While details remain undisclosed, the move aligns with Trump’s previous initiatives advocating for a national crypto stockpile. The reserve is expected to include Bitcoin, Ethereum, and other digital assets.
India Imposes Penalties on Undeclared Crypto Gains
On February 1, 2025, India enforced a 70% penalty on undeclared cryptocurrency profits, with a 48-month lookback period. This move, part of the Union Budget 2025, amends Section 158B of the Income Tax Act. Crypto assets are now classified as Virtual Digital Assets (VDAs), subject to the same tax rules as cash and gold. The amendment mandates exchanges and financial institutions to report all crypto transactions, tightening regulatory oversight.
FDIC Eases Crypto Restrictions for Banks
The FDIC is revising its guidelines to allow U.S. banks to engage with crypto businesses without prior approval. Acting Chairman Travis Hill admitted past policies discouraged such partnerships. The agency released 175 documents detailing its past stance due to legal pressure from Coinbase. This shift comes amid congressional scrutiny of debanking practices affecting crypto firms.
These developments underscore the significance of the still volatile realm of cryptocurrencies and DeFi, highlighting both regulatory influence and strategic maneuvers by major market players.
