Amid positive global cues, crypto prices have been rising persistently for past few days now. Brazil’s second largest city Rio de Janeiro announced that it would accept cryptocurrency payments for taxes next year.
Also, some media reports suggested that Terra's Luna Foundation Guard (LFG) has started to accumulate the top cryptocurrency as a reserve asset. Singapore-based nonprofit purchased bitcoin worth $125 million early last week.
Bitcoin surged 5.46 percent to trade at $47,083 on Monday in the global markets, ethereum rose 5.77 percent to $3,333, ripple rose by 3.41 percent to come closer to $1 at $0.867, solana rose 7.8 percent to $109, cardano rose 4.38 percent to $1.19, polkadot rose 9 percent to trade at $22.99 and Avalanche rose 5.32 percent to $90.82, according to Coindesk data.
The trend is being seen for past few days In the past one week, bitcoin saw a cumulative increase of over 14 percent, ethereum surged even higher to report an increase of 15 percent, binance coin rose by 10 percent, ripple saw an increase of 7.11 percent, cardano rose by a whopping 33 percent, solana rose by 21 percent and polkadot saw an increase of 21 percent, as per Coinmarketcap data.
Meanwhile, Government of India said ₹95.86 crore has been recovered from 11 cryptocurrency exchanges for evasion of Goods and Services Tax (GST), reported PTI.
The total amount includes penalty and interest. The exchanges which were involved in GST evasion cases included Zanmai Labs (WAZIRX), Coin DCX, CoinSwitch Kuber, Buy Ucoin, UnoCoin and Flitpay.
Others were Zeb IT Services, Secure Bitcoin Traders, Giottus Technologies, Awlencan Innovations India (Zebpay) and Discidium Internet Labs, according to the finance ministry.
In other news, the Government on Friday passed the crypto tax proposal in the Parliament, introducing an imposition of capital gains tax at the rate of 30 percent on cryptocurrency transactions starting April 1, 2022.
In addition to this, there will be a one percent tax deducted at source and taxes on crypto gifts with no provision for deduction for losses. The crypto taxed will come into effect from April 1 and TDS will be imposed from July 1 onwards.
Nischal Shetty, co-founder and CEO of WazirX said, “This is not conducive for the government or the crypto ecosystem of India, it is poised to do more harm than good."
As the bitcoin topped $47,000, the analysts said it confirmed a break out from a two-month triangular pattern defined by trendlines connecting February 10 and March 2 highs and January 25 and February 24 lows.
“The triangle breakout has opened up upside toward resistance at $53,000,” Daniel Kukan, a senior cryptocurrency trader said in a Telegram chat.