FX.co ★ Indian authorities accuse 11 crypto exchanges of tax evasion

BTC and ETH are hovering near their monthly and yearly highs, indicating that investors are unwilling to sell crypto assets. Furthermore, the rally, which has been going on since mid-March, is currently on hold. Crypto assets will likely resume their upward movement when the market calms down and major market players again come into action, bringing losses to traders holding short positions.

The Indian government has accused 11 top crypto exchanges operating in the country of tax evasion, seizing close to $12.6 million. According to Indian authorities, the crypto exchanges were under investigation for tax evasion.

India's Finance Minister Nirmala Sitharaman earlier proposed enacting a 30% capital gains tax on cryptocurrencies, as well as a 1% tax on every crypto transaction. Some members of the Indian parliament opposed these plans, saying the 1% tax would jeopardize the crypto market in India.

Indian crypto users have long opposed new legislation on digital assets, claiming it did not represent the interest of market players. The Indian government says the new laws would protect the rights of investors and regular crypto users, and claim further regulation is necessary. The recent tax evasion charges against major Indian crypto exchanges would add weight to the arguments of Indian government about combating tax evasion and money laundering.

UK cryptocurrency companies face an uncertain future - today is the deadline for crypto companies to register with the country's financial regulator, the Financial Conduct Authority (FCA). Only 33 companies out of more than 100 were registered. 60 were rejected or withdrew their applications, while 13 companies remain under a temporary registration regime, which would end on March 31. Among these companies are the crypto start-up Copper, the fintech company Revolut, which is valued at $33 billion, and the crypto wallet service Blockchain.com, which is valued at about $14 billion.

If these companies fail to obtain a license, it could shake up the crypto market.

On the technical side, BTC is pushing against the 200-day SMA line at $48,550. A breakout above this level could lead bitcoin towards monthly highs at $41,800 and $55,150. Bitcoin still has upside potential thanks to continuing investor demand for the asset. If BTC breaks through the 200 SMA line, it will signal that the long-term bull market will continue. However, if BTC breaks below $45,700, it could fall towards the low at $43,100, opening the way towards $40,400.

ETH is facing the resistance at $3,470, where the 200-day MA lies. If Ethereum breaks above the MA line, it could give the asset momentum to reach $3,682 and $3,887. Renewed pressure could allow opening long positions near the major support level of $3,270. A breakout below this level would push ETH towards the lows at $3,050 and $2,830, where major market players would act once again.