The ‘Internet and Mobile Association of India vs RBI’ case hearing resumed on August 14 where the Supreme Court faced some strong arguments from the IAMAI counsel, Ashim Sood over Reserve Bank of India [RBI] overstepping its jurisdiction, as reported by Crypto Kanoon.
In the previous hearing on August 8, the Council had argued that the ban proposed by the central bank was in opposition to Constitution’s Article 19  g- All citizens shall have the right to practice any profession or to carry on any occupation, trade or business.
However, the Supreme Court explained to the council that the users could switch to banks who do not fall under RBI’s jurisdiction that is the foreign banks and exchanges. Since there are alternatives available to people and the businesses, Article 19  g cannot be levied in this matter.
Sood continued to argue the legality of the RBI ban and that it did not have the authority to place a ban when there was a lack of legislative policy for crypto. Counsel submitted various judgments in support of this argument and summarised that “RBI cant step out of its powers as set out in Banking regulation Act. Therefore its action against private businesses in the form of 6th April circular is illegal,” noted Crypto Kanoon live-tweeting the hearing.
Along with the previous judgments, it was also pointed out that “the RBI in its reply had admitted that it did not have the jurisdiction to speak on the legality of cryptocurrencies due to the lack of clarity on its status on being a coin or a currency”, however, used its ancillary power to impose a ban. They added that RBI acted under the “error of law” and that the law states that something which is not prohibited is legally permitted.
The power to ban or regulate something lies in the hands of the legislature and is a legislative act; thus the decision to ban or regulate crypto is in the hands of the legislature alone and not RBI. Sood, while presenting UK’s financial conduct authority’s report on crypto-assets noted a stark difference as it recognized 3 kinds of crypto assets, whereas the RBI in its reply stated that there was no need to define virtual currencies.
The case took an interesting turn when the counsel explained cryptos and DLT to the court, where the Counsel noted that
“Crypto is an electronic token to incentivise people who serve the DLT system to maintain its integrity.”
The discussion extended where the court was presented with data of various nations wanting to regulate cryptocurrency, rather than putting a ban. The cases of EU, China, France, and Japan had been discussed with a special focus on Japan, which regulates the exchanges under the Payment Services Act and had implemented KYC and AML laws. The court heard about the actions of regulations taken up by the G20 nations like Singapore, Saudi Arabia, Australia, Malaysia, UK, South Africa, and the USA.
The judge showed a keen interest in the type of Virtual Currencies as provided under the NY law, which was taken as a positive sign by the community. In closing, the counsel added that even though there is no denying about the detrimental effects of crypto like every other technology, these implications need to be regulated like other countries and not banned.Kashif Raza, co-founder of Crypto Kanoon and a prominent crypto expert stated:These arguments that are happening in the court should not be seen with the perspective of whether a negative thing is happening or a positive thing is happening. Everything that is happening in the court right now is good for the industry because today you’re getting a platform where you are able to communicate and convince as the world is watching.
Tron, Stellar, Litecoin are not the over-hyped coins, claims a new report
In the report, cryptocurrencies such as TokenPay, Electroneum, Dragonchain, Telcoin, and DigiByte are termed as the most overhyped cryptocurrencies on Twitter.
An indicator reveals the hype game of few cryptocurrencies. Research platform “The Tie” shared a detail report on which cryptocurrencies are the most and the least overhyped on crypto Twitter.
TRX, XLM, and LTC are not overhyped
Often, crypto projects run the race of capturing most audience and users via bot accounts tweeting about them, increasing user engagement ratio to make it more genuine. Recently, The Tie, which offers valuable information for crypto traders created “Hype-Activity-Ratio.” The validator affirms that the tool measures “the number of tweets each crypto has per $1million in trading volume.”
Across the 450 cryptos, we investigated, there was an average of 1.02 tweets per $1M in volume, The TIE wrote. We used 30-day averages for the tweet and trading volumes.
According to the report, Tron, Stellar, Litecoin are not the overhyped cryptocurrencies. Tron which is currently ranked as the 14th largest cryptocurrency, Stellar being the 11th largest coin and Litecoin as the 5th most significant coins don’t fall under most-hyped cryptocurrencies on Twitter.
However, The Tie claims that “While this metric is not perfect, we think it’s a good tool for identifying massive outliers.”
The Most and Least Over-hyped Cryptocurrencies
On the other hand, the platform finds Tether, EThereum Classic, EOS, NEO, and Cosmos as the least overhyped crypto, which has the very lowest number of tweets per $1 million trading volume. However, cryptocurrencies such as TokenPay, Electroneum, Dragonchain, Telcoin, and DigiByte are termed as the most overhyped cryptocurrencies on Twitter. Notably, the platform mentioned;
These tokens had more than 500 times more tweets per $1M in trading volume than the average crypto.
These tokens, Token Pay, Electroneurm, Dragoncoin, doesn’t hold much trading volume, but the increased activity on Twitter made them the most overhyped cryptocurrencies – presumably, they are paying much to its army.
Moreover, the platform analyzed the “hype-activity-ration” of the few largest cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. According to its logarithmic chart, these coins have relatively consistent Hype to Activity ratio. It outlined that the Ripple’s XRP with its tags (such as #XRPthestandard, #XRPcommunity ) is significantly higher than the above most significant coins.
Adding a note on a social media manipulation, the report compared Coinbase’s reach on Facebook v/s the reach of Tron CEO Justin Sun. It mentioned while Coinbase with over 30 million users has just 187k likes, Justin Sun’s profile counts 6 million likes.
Although many within crypto can easily detect manipulative practices, this deception is aimed at new entrants into crypto who are often less informed.
Fidelity Adds XRP to List of Supported Cryptos for Charitable Donations
Fidelity Charitable has added XRP to its list of assets, allowing donors to make contributions using the world’s third-largest cryptocurrency.
According to the announcement,
“The addition of Ripple expands the existing array of assets, including bitcoin, that donors can contribute into their donor-advised funds to fuel their philanthropy.”
Cryptocurrency donations give people a way to increase their charitable giving since gifts are exempt from paying capital gains taxes. Instead, the 501(c)(3) charity receives the full value of a donor’s contribution.
Crypto Donations to Fidelity Charitable
In the example above there are three key assumptions.
- Assumes all realized gains are subject to the maximum federal long-term capital gains tax rate of 20% and the Medicare surtax of 3.8%. This does not take into account state or local taxes, if any.
- Amount of the proposed donation is the fair market value of the appreciated property held more than one year that donor considers, as determined by a qualified appraisal.
- Assumes a contribution of 100 bitcoin. Alex’s tax basis is assumed to be $100/bitcoin. If Alex sold 100 bitcoin for $250,000, he would have $240,000 in capital gains and would pay $57,120 in tax.
The organization says there’s also another upside to making donations using cryptocurrencies such as Bitcoin and XRP to Fidelity Charitable, which has a donor-advised fund program: participants can recommend how the contribution is invested and potentially grow it tax-free.
The organization has helped donors support more than 278,000 nonprofit organizations with more than $35 billion in grants. It hit a milestone last year with $1 billion in contributions from complex assets such as private stock, limited partnership interest, real estate and cryptocurrency.
The addition of XRP rounds out the organization’s support for the world’s top five cryptocurrencies: Bitcoin (BTC), Ether (ETH), XRP, Bitcoin Cash (BCH) and Litecoin (LTC).
Ethereum co-founder Vitalik Buterin: Blockchain “is much bigger than just Bitcoin”
- People need to know that blockchain has transformed from being “just about Bitcoin.”
- Governments do have a regulatory role in the industry.
Vitalik Buterin is popular for the creation of Bitcoin’s competitor Ethereum. The “skinny visionary” was a speaker at the Blockchain Futurist Conference. However, he was also interviewed by the Star where he shared a lot about the blockchain and the journey in the cryptocurrency field.
According to Buterin, people need to know that blockchain has transformed from being “just about Bitcoin.” He says that blockchain is much bigger than Bitcoin and can take “a lot of different versions.”
“For bitcoin, the idea is that you have decentralized cryptocurrency running on blockchain and protected from corporate and state control that’s not going to deflate on you and it’s not going to get confiscated. The blockchain is just a tool to make that specific thing possible.”
While comparing the above Bitcoin scenario to Ethereum, Buterin added:
“That’s the bitcoin side. For Ethereum what we care about is taking the blockchain technology behind bitcoin that makes decentralized cryptocurrency possible and making it more general purpose so that other things can be decentralized in the same way.”
Buterin also clarified that governments do have a regulatory role in the industry. However, there is a lot that needs to be done to understand initial coin offerings (ICOs) when it comes to securities categorization. “The regulators are definitely grappling. They are undecided in many ways,” Buterin said. The founder also shared his opinion on how to improve scalability which will help speed up adoption.
“The main problem with the current blockchain is this idea that every computer has to verify every transaction. If we can move to networks where every computer on average verifies only a small portion of transactions then it can be done better.”