In the rapidly changing DeFi and crypto space, staying informed on the latest developments and trends is crucial. This article provides a weekly roundup of the key events to keep you updated.
World Liberty Financial Plans Strategic Reserve
World Liberty Financial, a DeFi project backed by Donald Trump and his family, plans to establish a 'strategic reserve' of purchased tokens, confirmed by co-founder Chase Herro to Bloomberg. This move aligns with Trump’s past advocacy for a national crypto stockpile. The reserve is expected to include Bitcoin, Ethereum, and other digital assets.
India Imposes Penalty on Undeclared Crypto Gains
On February 1, 2025, India enforced a 70% penalty on undeclared cryptocurrency profits, with a 48-month lookback period. The decision, 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 to Ease Bank Restrictions
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, following legal pressure from Coinbase. This shift comes amid congressional scrutiny of debanking practices affecting crypto firms.
These developments highlight the rapidly evolving nature of the crypto and DeFi space, requiring constant attention to regulatory changes and strategic moves by organizations.
