Welcome to the first Weekender of 2021! Every week, we review the top news stories from the digital asset world, as chosen by our reader’s interest. This week we kick-off with the news that the Indian government is considering a Bitcoin transaction tax that would add $1 billion in revenue a year - a move some industry participants said is a sign of the government’s growing comfort with cryptocurrencies.
A proposal put forward to the Central Board of Indirect Taxes & Customs (CBIC) by the Central Economic Intelligence Bureau (CEIB) would categorize Bitcoin as an intangible asset and impose an 18% goods and services (GST) tax on Bitcoin transactions, according to The Times of India. The proposal also suggests treating Bitcoin as current assets and charging GST on margins made in trading. An 18% GST on the estimated annual value of all Bitcoin transactions of INR 40,000 crore (roughly $5.5 billion) would yield INR 7,200 crore, or $1 billion in tax revenue.
The latest data shows that each Bitcoin miner is making $0.19 daily per TH/s of computing power — the highest amount this year. The last highest figure this year was $0.17, in February, when Bitcoin was trading at around $10,500 prior to the halving event.
In terms of total dollar revenue, Bitcoin miners made $24.27 million just yesterday, out of which $21.59 million came from block subsidies and the rest from transaction fees.
Riot aggressively expanded the size and sophistication of its mining operations in 2020, including a planned pilot project in Texas to test water immersion cooling technology, in addition to purchasing over 31,000 new ASIC mining machines this year.
Riot shares opened Monday nearly 18% higher than the Thursday close on Christmas Eve.
Riot pivoted its business model from biotech to Bitcoin mining in October 2017 when the company's value was less than $50 million.
In a notice filed by the Securities and Exchange Commission Monday, the U.S. regulator declined to approve a rule change for tZero-backed BOX Exchange Inc., which intended to offer blockchain-based stock trade reporting.
The proposal intended to have National Market System (NMS) stocks use BOX's blockchain trading venue, also known as Boston Security Token Exchange LLC (BSTX).
The SEC's major concern: Inaccurate information being published to the blockchain, as BSTX intended to use an "omnibus wallet" for non-BSTX stock transaction data, which the regulator feared could not stay up to date.
I have a feeling the SEC will be feature in our news recaps on a regular basis this year!
Have a great Sunday.
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