A Day After India Budget 2022 Imposes 30% Tax On Crypto, Global Market Falls 4%

A day after the India Budget 2022 introduced a 30 per cent tax on cryptocurrency taxation, the global market fell, though major currencies, including Bitcoin and Ethereum were trading with marginal gains.

While the Budget also laid the foundation for the launch of the central bank digital currencies (CBDCs) in the financial year 2022-23 by the Reserve Bank of India, Japan also seems to be showing interest in the area. Bank of Japan governor Haruhiko Kuroda during a Parliamentary Session last week told the Japanese government that they must cooperate with Europe and the US to create a globally standardised set of rules regarding CBDCs. In the same session, Japan finance minister Shunichi Suzuki said that they were closely monitoring the outcome of China’s recent e-yuan (CBDC) launch and its effect on its economy.

The global crypto market cap declined by 3.90 per cent at $1.69 trillion but crypto trading volume increased by 28.80 per cent to $82.31 billion.

The world’s oldest cryptocurrency, Bitcoin (BTC), saw its prices increase marginally by 0.42 per cent at $38,630.27.

"Bitcoin is trading above $37,000, albeit within a narrow range for trading. Ether and major altcoins are in the green, at the moment. However, metaverse coins and memecoins failed to sustain the bullish pattern. Major Asian markets might witness a slow down due to the Chinese New Year/Lunar New Year celebrations," says Gaurav Dahake, CEO and founder, Bitbns.

Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, was trading with a gain of 2.70 per cent at $2,774.36 at 8.18 am, as per coinmarketcap data.

Among other major coins, Cardano (ADA) was up by 4.91 per cent at $1.09. Algorand (ALGO), which is known as the Ethereum killer, was up by 3.14 per cent at $0.9842; its market cap now stands at $6,456,570,421. Binance Coin (BNB) was up by 1.23 per cent at $383.92, Solana (SOL) was up by a massive 7.25 per cent at $109.78 and Polkadot (DOT) was also up by 5.77 per cent at $20.44.

Today’s top gainer was Graft (GRFT), which is up by 637.02 per cent at $0.0004803. The top loser was Ninja Floki (NJF), which is down by 91.17 per cent at $0.0000008104.

Meme Coins And DeFi

Dogecoin (DOGE) was up by 0.56 per cent at $0.1425. Its volume to market cap ratio stands at 0.02131. Rival Shiba Inu (SHIB) was also up by 1.77 per cent at $0.00002182.

Dogelon Mars (ELON) was, however, trading with a loss of 2.92 per cent at $0.0000008514. Floki Inu (FLOKI) was also down by 3.47 per cent at $0.00003689, while Samoyed Coin (SAMO) was up by 1.87 per cent at $0.0239.

In the DeFi segment, YFI (yearn.finance) was trading with a gain of 2.96 per cent at $25,552.80. Terra (LUNA) was up by 0.75 per cent at $52.69, Avalanche (AVAX) was up by 5.69 per cent at $73.82, but Uniswap (UNI) was down by 3.72 per cent at $11.18, while Aave (AAVE) was up by 0.92 per cent at $162.78.