Cryptocurrency update: Solana gains 19.4%; Dogecoin slips 4.3%

Solana registered the highest gain of 19.44% among its peers and was trading at $134.07. With this rise, the crypto has moved one spot higher and has become the seventh-largest cryptocurrency in the world by pushing Dogecoin to the eighth position. Dogecoin declined by 4.32% to $0.29. The biggest and the oldest cryptocurrency Bitcoin slipped by 1.79% to $48, 852.79 levels, while the second-largest virtual token, Ethereum also declined by 0.21%  to $3,767.15. Meanwhile, Binance Coin decreased by 3.14% to  $481.42 in the last 24 hours. Others like XRP, Cardano and Polkadot were trading in red on September 3.

Cryptocurrency Prices

*All prices as of 3 September 2021, at 9:40 AM, Table Source: Coinmarketcap.com. Conversion rate for the USD to INR used was $1=Rs 73.07

Banks reportedly easing their stance on cryptocurrency trading

Indian banks are slowly easing their stance on cryptocurrencies, after months of uncertainty. The country’s top crypto exchange WazirX has listed internet banking payment options from public and private banks in the country, according to a Business Insider report. Top banks like Punjab National Bank, Union Bank of India and Industrial Development Bank of India (IDBI), Deutsche Bank, Federal Bank are eligible for net banking.

This comes on the back of India’s crypto bill, which is still awaiting approval from the cabinet. The government is yet to make up its mind on how to govern cryptocurrencies. According to the website, the government may be softening its stance on cryptocurrencies in the face of surging popularity in Tier 2 and Tier 3 towns.

Government to consider cryptos as commodities for taxation

Under the new draft Bill, the government is planning to define cryptocurrencies on the basis of their use cases, according to The Economic Times, reported. As per the use case, cryptocurrencies may be classified as payment, asset or utility.

The bill is also expected to outline the tax treatment of such assets so that it is clearly defined in the books of accounts. Further, if cryptos assets are categorised as commodities, the returns could be taxed as business income in the hands of investors on the returns at normal income tax returns.