Foreign Cryptocurrency Exchanges to Face Difficulties in India
A survey conducted by Yahoo Finance in 2022 placed India as the fifth largest country in terms of Bitcoin and crypto investments. However, the Indian government has retained a stringent stance towards the sector.
At the same time, the ban policy of Indian officials for crypto trading platforms was not aligned with FIU policies. Financial analysts hailing from the region have pointed towards a lack of regulatory framework and high tax rates as a motivating factor towards the rising use of foreign exchanges.
Indian FIU operating under the Ministry of Finance has compiled a report regarding Money Laundering Act violations. The report has listed various firms such as Binance, Kraken, HTC, KuCoin, Gate.io, Bitstamp, MEXC Global, Bittrex, and Bitfinex that had been operational in the country as of December 28th, 2023. T
his notification has been issued as a warning for the defaulting firms to ensure compliance with regulatory requirements within 12 days. Regulators have directed the exchanges to ensure the implementation of Know Your Customer and AML guidelines.
Indian YouTuber, SMC Kapil Dev commented on the matter noting that OKX is one of the first foreign exchanges operating in India to take the initiative of complying with regulatory guidelines. Another prominent crypto influencer from India namely Aditya Singh claimed that various cryptocurrency exchanges have already responded to FIU notice and working with regulators to reach a resolution.
Apple India Blocks Foreign Crypto Trading Applications After FIU Notice
Apple has delisted various foreign cryptocurrency trading platforms for its Indian consumers after receiving a notification from FIU officials. The delisting was confirmed on 10th January and after this incident, the same crypto exchanges also disappeared from Google Play Store. The ban was followed by a geological ban on URLs and alternative URLs that grant access to these digital asset trading platforms.
This ban will harm the retail investors who resorted to using foreign cryptocurrency exchanges to avoid a 30% tax implication on capital gains. Many individual crypto investors hailing from the region have expressed worry and shock at the sudden decision to delist trading alternatives. A report published in the Economic Times noticed that $4 billion in cryptocurrency client funds from India were held on foreign platforms.
The report also stated that around 80% of this sum was at Binance. This report also shared data projections associated with the use of foreign digital trading platforms among Indian consumers. It indicated that the Indian government lost around 30 billion INR or $361 million in taxes due to foreign trading alternatives.
The latest round of regulatory tightening against crypto exchanges is also directed towards foreign exchanges with no particular obligations placed on their domestic counterparts.
Mumbai Organizes Metaverse Event to Boast Infrastructure Revolution
The Mumbai Metropolis Metaverse (M3) is a local Web 3.0 project that showcases its infrastructure projects. The city also known as the financial and economic hub of India sponsored the project to highlight the impact of megaprojects on the daily lives of locals.
M3 is a free participation project that allows users to dive into different infrastructure projects presented in 3D and VR. One of these projects as reported by Cointelegraph is an Arabian Sea highway to distribute traffic pressure.
Another noteworthy project is the underground and undersea tunnel network that enables intra-city commutes. All of these projects are modeled into a VR version and accessible on Mumbai’s metaverse app. Devendra Fadnavis, deputy chief minister of Maharashtra posted an M3 invitation on his X profile on 19th February. Citizens can access the project via the official website or apps on Apple and Google stores.
On the blockchain front, the Reserve Bank of India (RBI) has announced plans for finalizing retail and wholesale CBDCs. The Central Bank started blockchain recruitment for the project in 2023. Governor Shaktikanta Das told the media that the CBDC utility has been upgraded to offline and programmable tokens.
In contrast, federal monetary institutions of Europe and England have retained that their CBDC projects will not be programmable at the core. This stance has emanated from the criticism and concerns of citizens regarding the loss of financial freedom and autonomy.
