As the DeFi and cryptocurrency space continues to evolve rapidly, staying informed about the latest news is crucial. This roundup covers key developments and trends to keep an eye on.
Donald Trump Supports Creation of '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. 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 to Impose 70% Penalty 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. Crypto assets are now classified as Virtual Digital Assets, subject to the same tax rules as cash and gold. The amendment mandates exchanges and financial institutions to report all crypto transactions, thus tightening regulatory oversight.
FDIC Eases Crypto Banking 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 that past policies discouraged such partnerships. This shift comes amid congressional scrutiny of debanking practices affecting crypto firms.
These events highlight the dynamic nature of the DeFi and cryptocurrency space. From major player initiatives to regulatory changes, these shifts significantly impact the future of the crypto industry.
