Sumitomo Trade Document Network Partnership Adds Chainlink Involvement

According to India’s Finance Ministry, Binance and a number of other virtual asset service providers (VASPs) are not tax-compliant in India. Cases of tax evasion detectedNews of this matter emerged via written answers, published on Dec. 2, provided in response to parliamentary questions which had been put to India’s Finance Minister, Pankaj Chaudhary. The minister confirmed that a “few cases of evasion of Goods and Services Tax (GST) by cryptocurrency exchanges and investors” had been detected. The document goes on to list 17 crypto entities who are currently being investigated on that basis, with Binance being the most well-known among them. Notable Indian exchanges listed include WazirX, CoinDCX and CoinSwitch. Chaudhary included details of cases booked against these exchanges. In Binance’s case, it was required to pay 722 crore Indian rupees, which amounts to around $85.2 million. While Binance doesn’t appear to have incurred penalties, in the case of WazirX, the exchange had an assessed tax shortfall of 40.51 crore Indian rupees ($4.78 million), but after fees and interest, it was provided with a demand for 49.19 crore Indian rupees ($5.8 million). CoinDCX and CoinSwitch were also assessed with a demand for 20.86 crore Indian rupees ($2.46 million) and 19.38 crore Indian rupees ($2.28 million), inclusive of penalties and interest. In the case of WazirX, CoinDCX and CoinSwitch, the exchanges have had to pay an additional 21%, 24% and 37% respectively in fees and interest over and above their original tax liabilities.Photo by Naveed Ahmed on UnsplashPrevious tax and regulatory issuesTo date, the Finance Ministry has recovered 122.3 crore rupees ($14.4 million) as part of these investigations. Binance has as yet not paid the funds demanded by the authorities. It emerged in August that India’s Directorate General of Goods and Services Tax Intelligence (DGGI) had imposed an $86 million tax demand on the company, with Binance contesting the assessment. The global crypto exchange platform had previously paid a $2.5 million fine for having engaged with Indian customers despite not having been approved by the authorities to trade within the country. After a number of months during which it didn’t trade within the Indian market, in August Binance regularized its standing and gained approval to trade. In a request for comment on the matter from Cointelegraph, a Binance representative stated: “We continue to work closely with regulatory authorities and attend necessary hearings to address any concerns and questions. Binance remains responsive and cooperative and is committed to addressing all necessary tax inquiries.” The company recently hired UK-based accounting and business advisory firm Grant Thornton to assist with accounting, tax and audit preparedness. In the case of WazirX, a spokesperson said that “GST law on cryptocurrencies was not clear in India,” and that on this basis, the company found itself being assessed for non-payment of the applicable taxes.

Web3 chatting app Beoble launches beta version with 50,000 usersWeb3 social messaging app Beoble has secured over 50,000 users in just one day since the beta version of the app was released on Saturday (KST), according to a post on its official X account. This comes after pre-registration applications closed on Nov. 30, which saw over 100,000 sign-ups.Photo by Andrej Lišakov on UnsplashEmpowering Web3 connectivityBeoble is a Web3-based social messenger platform that employs a decentralized encryption network called the Communication Delivery Graph. It allows users to engage in end-to-end encrypted chatting between their digital wallets and offers a communication toolkit for integrating decentralized applications (dApps). The app currently supports all EVM-compatible blockchains like Ethereum and Polygon and plans to add others like Solana, Aptos and Sui in the future.“Beoble is essentially the first Web3 messaging app with the complete user experience,” said Cho Sung-min, CEO of Beoble.In particular, Beoble has gained attention for having a low barrier to entry due to its user-friendly user interface and experience (UI/UX). Notably, the platform facilitates direct communication between Web3 wallet owners and allows them to conduct non-fungible token (NFT) and peer-to-peer (P2P) transactions.Incentivizing community engagementThe Beoble team explained that the ongoing beta test will be an opportunity to incorporate user feedback and improve services. It will also be a period during which users can receive rewards based on their chat room engagement.“The more active users are in the community, the higher their rewards. Rewards can be obtained through activities like completing quests, following others, reacting to messages and logging in,” the firm explained. The Beoble rewards system distributes “cat points” to users based on their participation and contribution to the ecosystem, which are then used to determine their eligibility for rewards like token airdrops.Beoble also previously raised $2 million in pre-seed funding, backed by investors like Digital Currency Group, HashKey Capital and Genesis Blockchain Ventures. The platform’s public launch is scheduled for Q1 2024.

Crypto-Friendly Xapo Bank Enters Indian MarketXapo Bank, a cryptocurrency bank based in Gibraltar, has set its sights on India and plans to offer banking and cryptocurrency services in the country.Xapo, which claims to be the first bank in the world to integrate traditional private banking with crypto, issued a press release which was published via Bloomberg on Thursday to announce the development.Photo by Julian Yu on UnsplashMassive market opportunityWith a population of over 1.3 billion, India presents a massive opportunity for Xapo Bank, which is backed by prominent investors like SoftBank, DST Global, and Ribbit Capital. This move comes at a time when India has seen impressive foreign inflows of $15.5 billion in the first quarter of 2023.The CEO of Xapo Bank, Seamus Rocca, suggested that the absence of conventional banking services in certain parts of South Asia has created a void that Xapo Bank aims to fill. By providing innovative financial products and services, the bank hopes to empower individuals and businesses with access to reliable and inclusive banking solutions.Rocca stated that the move “represents an opportunity to provide our hybrid banking and investment solutions to its large underserved populations, bridging an important gap in the region’s financial systems and allowing its savvy savers, investors, and professionals the freedom to explore their financial potential with a single mobile application.”Competitive interest rate offeringOne of the attractive features of Xapo Bank for customers in India is its competitive interest rates on deposits. The bank offers attractive returns, with a yearly interest rate of 4.10% on US dollar deposits and 1.00% on Bitcoin deposits. Notably, the daily interest payments on Bitcoin deposits are distributed in the smallest denomination of the cryptocurrency, a satoshi.Xapo Bank’s expansion into India aligns with the country’s projected economic growth of 6.3%, according to Fitch Ratings. Despite the worldwide economic downturn, India’s GDP demonstrated robust growth of 6.1% in the first quarter, showcasing the country’s resilience.Government policy challengesHowever, Xapo Bank will face challenges as it enters the Indian market. The world’s most populous country has implemented strict measures regarding cryptocurrencies, including a 30% tax on all cryptocurrency income and the elimination of deductibility for losses. Such regulations could potentially impact Xapo Bank’s operations and profitability in India.Authorities like the country’s central bank, the Reserve Bank of India (RBI), have been more inclined to encourage the financial services sector to adopt blockchain technology rather than offer cryptocurrencies directly. Earlier this month, American multinational financial services company JPMorgan Chase partnered with six major Indian banks in a blockchain offering that aims to improve the interbank settlement process.Nevertheless, Xapo Bank remains undeterred, recognizing the immense potential of India’s growing economy and the urgent need for accessible financial services. The bank’s expansion promises to create opportunities for individuals and businesses across the nation, contributing to India’s economic development and financial inclusion.Moreover, Xapo Bank’s entry into India reflects a broader trend of fintech innovation and the convergence of traditional banking and digital currencies. As the world becomes increasingly interconnected, financial institutions like Xapo Bank are reshaping the financial services landscape by offering forward-thinking solutions that bridge gaps, ultimately empowering individuals and fostering economic growth.