Today in Crypto: India’s Terra Investors Face High Tax Bills; Crypto-Linked ETFs Among ’22’s Worst Performers

Lithuania is considering making its own crypto licensing regime because European Union laws might not come in time to safeguard things, CoinDesk wrote Monday (June 6).

Brussels’ law, the Markets in Crypto Assets Regulation (MiCA), might not be ready until 2025, so Lithuania’s plan is to do its “homework” beforehand, according to Mindaugas Liutvinskas, the country’s deputy finance minister.

However, the rules under MiCA are causing worry for some Lithuania-based countries. According to CoinDesk, Liutvinskas said that while the country is waiting for the rollout of MiCA, it intends to bolster its own regulations surrounding the digital assets.

Meanwhile, Bloomberg reported Sunday (June 5) that Terra investors in India haven’t been as fortunate as those in other countries, which got back some of their money after the stablecoin crashed in May as a new Luna token was rolled out as compensation.

This comes as India’s tax system has been punitive for crypto investing, meaning TerraUSD and Luna token holders will be taxed as much as 30% of the value of tokens received. They also won’t be able to offset gains for the new token against losses from the old one.

In other news, Cryptio, an institutional-grade crypto company, has raised $10 million in a Series A funding round, CoinDesk reported Monday.

The funds will go toward hiring new employees, product development and expanding offerings to publicly traded companies and institutions, per the report.

The reporting platform’s intent is to help financial institutions, corporates and crypto-native businesses make auditable records from fragmented decentralized finance, custody and exchange data for the purposes of accounting, treasury and tax filings, with the data able to be connected to other accounting software.

Finally, crypto exchange-traded funds (ETFs) have been clustering on the worst-performing list so far in 2022, according to a Monday report from Bloomberg, with the six worst-performing, non-leveraged ETFs all being those types of ETFs.

The worst among them is Global X Blockchain’s ETF, which is worth $63 million, with a year-to-date drop of 64%.

Crypto ETFs have increased in ranks over the last year, though the performances have not kept up, with fading interest and a tighter monetary policy impacting the digital assets. That has come with bitcoin seeing a massive drop this year after hitting a high last November.