Abra to Venture Into Global Financial Services Powered by Stellar’s Blockchain

Abra, a popular crypto-fiat wallet along with an exchange application, is planning to create a decentralized global banking solution built on top of Stellar blockchain. The move could be inspired by Stellar’s $5 million investment in Abra earlier this year.

Bill Barhydt, CEO of Abra during the SDF’s digital second quarter review meeting on July 15, talked about the company’s roadmap and emphasized particularly on “interest-earning capability,” which will be one of the most sought after features in coming days. Barhydt while talking about the upcoming services and features and the interest-earning services commented:

“This allows consumers, for example, people who aren’t even familiar with cryptocurrency, to store dollars and earn significant interest on those dollars.”

During the meeting, Barhydt also said that the interest-earning features would also be made available for cryptocurrencies along with the staking services.

How Does Abra Work?

Abra being a crypto/fiat wallet exchange app and now collaborating with banks, exchanges, and other financial entities and acts as a liquidity provider through its platform. Recently it has shifted its focus towards retail players to offer its application and expand its reach.

Elaborating on his plans for introducing interest-earning, Barhydt explained that they would partner with large institutional players who would work in tandem with its backend infrastructure to offer “a very sophisticated lending system.” Talking about their plans and how Abra aims to create the global banking solution, Barhydt said:

“For us to take this to another level, Abra is building an entirely new part of our business to facilitate the movement of funds globally, in real-time, using the Stellar network. What this will enable for us in all forms of global lending.”

He also explained that the success of defi in the past couple of years made him believe that the crypto market is more than ready to accept crypto lending and interest-earning potential that these digital assets posses. He explained:

“We want to take this to another level, and use the Stellar platform to enable traditional banking applications at a global scale truly.”

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Author: Silvia A

South Korea is Proposing A Tax on Profits From Crypto-Fiat Transactions

The South Korean Ministry of Strategy and Finance is proposing a tax on profits from crypto-fiat transactions, reported a local news outlet.

The proposition was made earlier this week which also includes the sale of the token through initial coin offerings (ICO) and crypto mining organizations.

The full proposal is intended to be released in July and submitted to the assembly in September.

Under their current law, the country doesn’t impose a tax on the income generated from digital currency transactions. This is unlike the US, Germany, and Japan who treat crypto gains as taxable income. Singapore also levies value-added tax (VAT) on crypto transactions.

South Korea meanwhile is considering the capital gains tax or other income tax on the profits earned by domestic and foreign investors in the transfer of digital currencies. They are looking to apply the standard of “taxation where income is located.”

Just like in the securities trading taxation, in the event of loss, the tax won’t be applied.

However, this might not be as simple to establish the taxation policy. EDaily quoted Seung Seung-young, a researcher at the Korea Regional Tax Institute as saying,

“If you do business through a peer-to-peer (P2P) transaction without going through an exchange, there is a possibility of avoiding taxation.

Even with IP tracking, if there are a large number of targets, administrative costs will increase and it will be difficult to track each day.“

South Korea has been struggling over crypto taxes for quite some time now. In December, crypto exchange Bithumb got slammed with a $67 million tax bill that resulted in an ongoing lawsuit.

Earlier this year in March, new legislation was passed that legalized cryptocurrencies and provided a regulatory framework for them.

The same month, South Korea’s Financial Services Commission categorized cryptos as a “high-risk asset” which would prevent people DeFi platforms from operating in the country.

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Author: AnTy