The DeFi and crypto world sees new trends and events each week. This edition covers key news, including Donald Trump-backed World Liberty Financial's strategic reserve plans, India's tax regulations, and changes in FDIC's crypto policies.
Donald Trump-Backed Plan for a Strategic Reserve
World Liberty Financial (WLF), a DeFi project backed by Donald Trump and his family, plans to establish a 'strategic reserve' of purchased tokens. Co-founder Chase Herro confirmed this move aligns with Trump's prior advocacy for a national crypto stockpile. The reserve is expected to include Bitcoin, Ethereum, and other digital assets.
India to Impose 70% Tax on Undeclared Crypto Gains
On February 1, 2025, India will enforce a 70% penalty on undeclared cryptocurrency profits, as part of the Union Budget 2025. This amends Section 158B of the Income Tax Act, classifying crypto assets as Virtual Digital Assets subject to the same tax rules as cash and gold. The amendment requires exchanges and financial institutions to report all crypto transactions.
FDIC Eases Restrictions for US Banks
The Federal Deposit Insurance Corporation (FDIC) is revising its guidelines to allow US banks to partner with crypto businesses without prior approval. Acting Chairman Travis Hill acknowledged that past policies discouraged such partnerships. The agency released 175 documents detailing its previous stance following legal pressure from Coinbase.
This week in DeFi and crypto has been full of significant events. From strategic reserves and tax reforms to shifts in banking policy, the landscape continues to evolve, demanding attention from all market participants.
