Understanding Blockchain Technology & Cryptocurrency: A Comprehensive Overview
Delve into the world of blockchain technology and cryptocurrency through this detailed session. Explore the impact on various industries, the concept of decentralized ledgers, and the unique features of cryptocurrencies. Gain insights into the potential applications and challenges within this evolving landscape.
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Plenary 8 Blockchain Technology & Cryptocurrency April 28, 2018 IFA, New Delhi
BLOCK CHAIN TECHNOLOGY- CRYPTOCURRENCY Chairman : Mukesh Butani , Advocate Moderator: Kuntal Dave, Nanubhai Desai & Co. Panelist: Sonia Mathur, Sr. Advocate Shikha Mehra, Global Jindal Meyyappan Nagappan, Nishith Desai & Associates Place : The Lalit, New Delhi Date : 28th April, 2018 Time : 03:45 PM 05:00 PM
Contents What is Blockchain Technology & Cryptocurrency? Existing Width and coverage of Crypto Currencies. Recent Global Developments. Regulatory and Tax treatment outside of India. India s Position Regulatory Framework. Short Term Challenges at India. Long Term Impact of Blockchain. 28/04/2018 3
What is Blockchain technology & Cryptocurrency? How Internet of Things is going to change how we do business: Insurance Business More Data (and faster) Retail HR Manufacturing Management Agriculture (supply chains) Energy Industry Transport and Car Industry Business- Process Management Stock Balance Inventory Health Care Tourism 28/04/2018 4
What is Blockchain technology & Cryptocurrency? Cont d Introduction to Cryptocurrency Blockchain: Blockchain A decentralized, trustless ledger (list of transactions), on which only additions can be made The ledger history can never be changed All computers on the blockchain have the ledger Cryptocurrency A virtual currency that uses encryption to prevent double spending 28/04/2018 5
What is Blockchain technology & Cryptocurrency? Cont d The goal of Blockchain is to: Make each digital asset identifiably unique(through cryptography), Create a record that is trusted (aledger), Without a central issuer (decentralized), And form consensus among computers of which transactions are valid. P2P computer nodes 28/04/2018 6
What is Blockchain technology & Cryptocurrency? Cont d Transaction in a Blockchain: 28/04/2018 7
What is Blockchain technology & Cryptocurrency? Cont d Cryptocurrency Market Perspective: 28/04/2018 8
What is Blockchain technology & Cryptocurrency? Cont d Cryptocurrency Market Perspective: 28/04/2018 9
Recent Global Developments Source:queenwiki.com 28/04/2018 10
Recent Global Developments Cont d Major Events Q1 Global Overview: Source:News.Bitcoin|Techcrunch|CNBC|NewsBTC|BBC 28/04/2018 11
Recent Global Developments Cont d Major Events Key Regulatory Headlines: 28/04/2018 12
Recent Global Developments Cont d Tax Implications Worldwide: Standard Tax Rules will apply to emerging Tax payment systems (Cryptocurrency). On 3rdApril it Launched new Cryptocurrency Exchange Regulations. No guidance has been issued to Taxpayers completing transactions in Cryptocurrency. Tax enforcement consequences of digital currency. Outlawed Bitcoins in early February 2018. RUSSIA SWEDEN SWITZERLAND AUSTRALIA Has remained curiously mum so far on the subject. Existing tax rules apply to digital currency transactions. Trading in Cryptocurrencies illegal. VIETNAM AMERICA CANADA 28/04/2018 13
Recent Global Developments Cont d Tax Implications Worldwide: Profits from trading in Bitcoin are liable to tax, just like profits from other assets. As of 2017, Bank of Thailand is open to bitcoin provided proper controls are in place. Businesses that deal with bitcoin currency exchange will be taxed based on their bitcoin sales. Profits & losses on Cryptocurrency are subject to capital Gain tax. UNITED KINGDOM NORWAY THAILAND SINGAPORE In 2017 the Country s Government officially recognized bitcoin and digital currency as a method of payment. While not illegal in the country Korean Authorities will prosecute illegal activities involving Bitcoin. At present it has no legislation directly regulating bitcoins and other virtual currency. SOUTH KOREA HONG KONG JAPAN 28/04/2018 14
Indias Position Regulatory Framework RBI has banned Regulated Entities From Dealing In Virtual Currencies Reserve Bank of India wants its own digital currency The Finance Minister stated in Budget 2018 that Cryptocurrencies are not valid tender Cryptocurrency Investors were Sent Tax Notices by I-T Department 28/04/2018 15
Short Term Challenges at India? Key Concerns FEMA Taxation General Unique Identifiers Data Privacy Confidentiality Integration with existing System Is it a Currency / ForeignCurrency ? Transaction of Bitcoin - Current Account Transaction? Gain from Sale of Bitcoin Capital Gain or Business Income? Computation? Earned during Mining Process Taxable? Loss of Bitcoin Business Loss? Situs of Bitcoin? Significance of Online Wallet ? Is it Legal in India? Impact of ban of Cryptocurrency by Government of India? Is it Goods or Service? Is it a Prepaid Instrument? Is it Payment for Import? 28/04/2018 16
Long Term Challenges of Blockchain How can Blockchain address Transfer Pricing Issues? How can Blockchain address the issue of Transparency and Beneficial Ownership? Impact of Blockchain on the disputes and Litigation? 28/04/2018 17
Q & A 28/04/2018 18
Closing Remarks. Influence of Blockchain on Litigation: Possibility of using smart contracts with the use of blockchain, which will do away with traditional requirements of legal agreements. Smart Contracts Intellectual Property With the use of IP artist and musicians can get better income and recognition. Blockchain Law Need for Lawyers specializing in Blockchain Laws/Digital Laws. Property Rights Lesser dispute in property related cases with the use of distributed ledgers. Chain of Custody Easily track the custody of documents with the use of digital ledger. More challengers for lawyers to track anonymous payments through Cryptocurrency by criminals. Financial transaction Notary Public Save space by using blockchain technology to preserve the notary documents digitally. 28/04/2018 19
THANK YOU! 28/04/2018 20
