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XLM $0.1857 +0.16%
ZEC $422.93 +1.90%

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India's cryptocurrency tax review exposes approximately $930 million in undeclared income, with a comprehensive strengthening of itemized reporting and cross-platform verification for the 2026 tax season

As India's tax enforcement intensifies, cryptocurrency investors face stricter reporting and compliance requirements in the 2026 tax season, with incorrect declarations potentially triggering fines and audits. Reports indicate that under current rules, cryptocurrency gains are still subject to a 30% uniform capital gains tax, and a 1% Tax Deducted at Source (TDS) is levied on transactions exceeding a certain amount, while losses cannot be offset across assets. The new Income Tax Act (2025) came into effect on April 1, 2026, but the core tax framework remains largely unchanged.In terms of reporting, investors must fill out a dedicated Schedule VDA section in the ITR-2 or ITR-3 forms and are required to record each transaction individually, including all operations such as trading, exchanging, transferring, and clearing, rather than just summarizing gains. The report emphasizes that regulatory focus has clearly escalated. The Indian tax authorities will directly obtain user-level transaction data through trading platforms, custodians, and wallet service providers, and will automatically cross-check this with reported information; discrepancies will trigger system flags and audits.Data shows that the Indian tax authorities have issued over 44,000 notices and discovered approximately 88.8 billion rupees (about 930 million USD) in unreported virtual asset income. Meanwhile, the tax department is enhancing its tracking capabilities by combining on-chain analysis tools with international data-sharing mechanisms. Additionally, starting in 2027, India will align with the OECD cryptocurrency reporting framework to achieve automatic exchange of cross-border transaction data, and overseas exchange holdings will gradually come under regulatory scrutiny.Analysis points out that common errors include misuse of reporting forms, omission of airdrop and staking income, and failure to correctly match 1% TDS records, among others. The report emphasizes that cryptocurrency tax compliance is shifting from "post-reporting" to "real-time traceability," and investors need to strengthen year-round record management.

Kalshi, Polymarket and other prediction market platforms jointly sued Kentucky over a 14.25% trading tax

According to Abcnews, several prediction market platforms including Kalshi, Crypto.com, and Polymarket have formed an alliance and filed a lawsuit in state court this Friday, attempting to block Kentucky's newly implemented 14.25% prediction market transaction tax.This tax was passed by the Kentucky legislature in April of this year, targeting transaction fees on prediction market platforms, with a rate of 14.25%, which is higher than the local horse racing industry's tax burden of about 9.75%. The plaintiffs in the lawsuit claim that the tax is discriminatory, unconstitutional, and may conflict with federal law.Prediction market platforms allow users to trade contracts on real-world events (such as economic data, election results, etc.), essentially belonging to the event derivatives market. The plaintiffs argue that this tax will significantly raise compliance costs and may force trading activities to shift to offshore platforms with weaker regulations.Kentucky Attorney General Russell Coleman stated that he will vigorously defend the law in court and asserted that the state government is capable of handling the related challenges.Meanwhile, Kalshi stated that excessive state-level tax burdens will weaken the competitiveness of the legal market and may drive users to illegal trading platforms that lack regulation and protection.This case is seen as the latest development in the ongoing conflict between the U.S. prediction market industry and state regulatory and tax systems.

Analysis: Anthropic refuses to fix the Fable jailbreak vulnerability, leading the U.S. government to implement export controls

David Sacks, the head of AI and crypto affairs at the White House, stated that although the commercial version of the Mythos series model Fable released by Anthropic this week includes safety barriers, once those barriers are bypassed, users will be able to access Mythos's advanced cyber attack capabilities. Sacks pointed out that Anthropic had previously described Mythos as a "cyber weapon" that requires regulation, so fixing the related vulnerabilities should have been its responsibility.Sacks mentioned that a partner trusted by both Anthropic and the U.S. government discovered a jailbreak method to bypass the safety barriers while testing Fable. The U.S. government subsequently requested Anthropic CEO Dario Amodei to fix the vulnerabilities or take the model offline, but this request was refused. Anthropic stated in a declaration that the vulnerability is "not serious," a claim that contradicts the judgment of the U.S. government and relevant partners.Sacks stated that Anthropic has always emphasized that safety should be prioritized, but this time it prioritized maintaining consumer-grade model services. In response, the U.S. government reluctantly imposed export control measures on Anthropic and hopes that Anthropic will resolve the safety issues as soon as possible to lift the related restrictions and restore the full release of Fable.Sacks also denied that this action is related to previous disputes between the U.S. Department of Defense and Anthropic, stating that the government recognizes Anthropic's technological capabilities and believes that the current issues can be resolved relatively easily, with the initiative currently in Anthropic's hands.
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