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BTC $63,063.11 +0.05%
ETH $1,882.17 -0.05%
BNB $606.66 -0.66%
XRP $1.00 +0.00%
SOL $75.48 +0.06%
TRX $0.3316 +0.19%
DOGE $0.0699 -0.04%
ADA $0.1766 -1.28%
BCH $204.36 -0.03%
LINK $9.36 -1.19%
HYPE $57.34 +1.09%
AAVE $86.84 -0.20%
SUI $0.6797 -0.47%
XLM $0.1579 -0.26%
ZEC $493.47 +0.82%

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Nigeria issues guidelines for virtual asset taxation, requiring the declaration of income from mining, staking, and airdrops

According to The Nation Online, the Nigerian Tax Authority has released the "Virtual Asset Taxation Guidelines," officially incorporating cryptocurrencies, stablecoins, NFTs, and other blockchain digital assets into the country's tax system. The guidelines were published on July 31 and provide the first detailed framework for taxing the income from assets such as cryptocurrencies, stablecoins, governance tokens, and NFTs.The guidelines stipulate that income generated from the disposal, exchange, or transfer of virtual assets must be taxed according to Nigerian tax law, and income from blockchain activities such as mining, staking, validating, airdrops, and token rewards is also subject to taxation. Virtual assets must be valued at the market price of exchange platforms recognized by the tax authority. Individuals and businesses must maintain complete transaction records, and virtual asset service providers must register for taxation and report large or suspicious transactions. The SEC continues to regulate securities-type virtual assets, while the tax authority is responsible for tax management. The guidelines do not set a separate tax rate for cryptocurrencies but apply existing tax law provisions. The guidelines follow President Bola Tinubu's executive order on establishing a coordinated regulatory framework for virtual assets.

The msUSD of MetronomeDAO once deviated from its peg by 11% due to insufficient collateral issues in the synthetic asset module

According to Blockaid monitoring, the trading price of MetronomeDAO's Synth USD (msUSD) on Ethereum, Base, and Optimism once dropped about 11% below the pegged value. Subsequently, MetronomeDAO released a post-mortem report stating that its synthetic asset swap module had insufficient collateral issues, resulting in a lack of adequate asset backing for approximately 6,367 msETH and 4.57 million msUSD, with the impact primarily concentrated on that module.The report pointed out that the problem stemmed from delays in the Chainlink price oracle during swap execution, and Metronome's fee design failed to adequately account for this variable, particularly on the Base chain where the situation was more severe. The team has deployed over $34 million in defensive positions and about $6.5 million in "last exit" liquidity, which could be used to repurchase and destroy sufficient assets to eliminate the gap if the peg deviates by about 30%. The team has increased the transaction fees for all synthetic trading pairs and upgraded the protocol to support a directionally isolated fee mechanism. Priority will be given to ensuring the treasury repurchases and destroys synthetic assets to restore 100% adequate collateral, while not affecting the rights of MET token holders, and the MET repurchase and distribution plan will proceed as usual.
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