This week saw numerous significant events in the world of DeFi and cryptocurrencies. Let's explore the most notable ones.
World Liberty Financial and Donald Trump's Plans
World Liberty Financial (WLF), backed by Donald Trump and his family, plans to establish a "strategic reserve" of purchased tokens. Co-founder Chase Herro confirmed this to Bloomberg. The reserve is expected to include Bitcoin, Ethereum, and other digital assets.
India Imposes Tax on Undeclared Crypto Gains
On February 1, 2025, India will enforce a 70% penalty on undeclared cryptocurrency profits, with a 48-month lookback period. This move is part of the Union Budget 2025 and amends Section 158B of the Income Tax Act. Cryptocurrencies are classified as Virtual Digital Assets, subject to the same tax rules as cash and gold.
FDIC Eases Crypto Restrictions for Banks
The FDIC plans to revise its guidelines to allow U.S. banks to engage with crypto businesses without prior approval. Acting Chairman Travis Hill admitted that past policies discouraged such partnerships. The agency released 175 documents detailing its past stance, following legal pressure from Coinbase.
These events highlight significant shifts in how cryptocurrencies are regulated and utilized globally, from new initiatives in the U.S. and India to strategic plans involving major financial players.
