Technology

Raids are the final blow to cryptocurrency legislation

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NEW DELHI: The recent raids on the cryptocurrency exchange and allegations of its non-transparent shareholding and lack of KYC checks are seen as the latest blow to market participants’ efforts to secure a legal framework.
With the collapse in cryptocurrency prices over the past few months, the strength of the “asset” has already come under scrutiny, especially when agencies such as the Reserve Bank of India and even part of the Treasury expressed doubts. regarding their long-term sustainability.
When the House split, the government decided to delay an immediate decision last winter, with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman calling for global cooperation, arguing that steps taken by one country were not enough to regulate it. In any case, trade was forced to slow down after Sitharaman placed it under the tax grid and also introduced TDS into the latest budget, although a ban or regulation is still being discussed given the country’s regulatory vacuum.
The regulatory frenzy has also slowed down given that the investor base has not been as high as 1.5-2 crores as some exchanges have said. “The numbers are probably a third of the numbers given,” the officer said, adding that most investors have very small ticket sizes.
However, officials have indicated that the government, which is tightening the G20 agenda next year, could push for Indian-led talks in 2023.
Officials said internal consultations are underway, mostly involving the finance ministry and regulators, and the plan will soon be finalized. But the latest round of action should take a backseat to those conversations as regulators around the world keep a close eye on the product, which has become hugely popular with young people.
“The central bank and some others have expressed some concern that crypto assets are a tool for money laundering and opacity, which agencies are currently investigating,” the officer said.
Last week, law enforcement officials said they raided the home of one of the directors of Zanmai Lab, the owner of the WazirX cryptocurrency exchange, and froze his bank account. He accused the organization of facilitating other authorities to withdraw funds from the country through cryptocurrency.

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