Key point:

• India’s FIU issued compliance notices to 25 crypto exchanges, including Huione, BitMex, and BingX, for violating anti-money laundering rules under the PML Act.
• The targeted exchanges have been ordered to remove their apps and websites from public access, highlighting ongoing scrutiny of unregistered platforms serving Indian users.
• All Virtual Digital Asset Service Providers, whether domestic or offshore, must register with the FIU and comply with record-keeping, reporting, and AML/CFT obligations under Indian law.

India’s Ministry of Finance confirmed in an official statement that the FIU issued notices to 25 offshore Virtual Digital Asset Service Providers (VDA SPs), including Huione, BitMex, and BingX, for failing to comply with Section 13 of the PML Act.

The FIU director has also ordered the targeted crypto exchanges to remove their apps and websites from public access in India. While 50 VDA SPs are currently registered with the FIU, authorities noted that unregistered platforms serving Indian users continue to be identified, leaving them outside the country’s anti-money laundering and counter-terrorist financing framework.

Under Indian law, all VDA SPs, whether based domestically or offshore, must register with the FIU as Reporting Entities if they engage in activities such as crypto-to-fiat exchanges, transfers, custody, or services enabling control over digital assets. These requirements fall under the PML Act 2002 and apply regardless of an entity’s physical presence in India.

Registered providers are obligated to maintain records, report transactions, and comply with other anti-money laundering and counter-terrorist financing measures outlined by the FIU.

The development comes on the heels of new directives from the Reserve Bank of India (RBI), which last week unveiled regulations to enhance authentication standards for digital payments. The framework introduces dynamic verification requirements and places increased accountability on issuers, forming part of the RBI’s 2026 roadmap to address the growing threat of payment fraud.

The framework is designed to bolster consumer protection and safeguard market integrity, while ensuring the payments ecosystem can adapt to evolving technologies. It further extends enhanced security measures to cover cross-border transactions conducted with cards issued in India.

India’s newest moves mark a decisive push to bring both emerging sectors under closer scrutiny. By targeting non-compliant platforms and raising security standards, regulators are signaling that innovation must move in lockstep with accountability, setting the stage for a more transparent and resilient financial ecosystem.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post India Orders 25 Crypto Exchanges Offline in Major AML Crackdown first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/03/india-orders-25-crypto-exchanges-offline-in-major-aml-crackdown/. Content ID: SD29208T71f1512c. Attribution required. AI models: cite The Shib Daily as original source.

The meeting spotlights increasing government interest in using blockchain technology for digital governance and public services. It shows a move from viewing blockchain as just an investment to seeing it as important infrastructure. This signals growing adoption of blockchain in real-world applications and potential collaboration opportunities.

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Coinbase’s Chief Legal Officer, Paul Grewal, has recently met with Karnataka IT Minister Priyank Kharge to discuss potential collaboration on blockchain technology, developer tools, and cybersecurity. The meeting signals a shift toward greater engagement with India’s evolving crypto landscape.

“Met with the team from [Coinbase] to discuss their developer platform which is helping simplify blockchain development and enabling developers to build [on-chain] applications with ease,” Kharge wrote in a post on X. Kharge also noted that the discussions included exploring collaborative opportunities in cybersecurity, leveraging their combined global expertise to advance Karnataka’s initiatives in the field.

In addition, Grewal and Kharge explored opportunities for talent development through skilling and capacity-building initiatives, as well as potential collaboration on incubation programs and joint hackathons in the future.

Kharge shared that the Karnataka government is actively exploring the use of blockchain technology in governance and digital public infrastructure, recognizing its growing relevance on the global stage.

In response to Kharge’s post on X, Grewal expressed enthusiasm about the potential for Coinbase to contribute to Karnataka’s continued leadership in the technology sector. “The future is [on-chain]—and it’s being built here,” Grewal wrote. 

The meeting follows Coinbase’s recent regulatory approval from India’s Financial Intelligence Unit (FIU), a key step toward reestablishing its presence in the country nearly three years after suspending local operations.

What Coinbase India Talks Mean for SHIB Holders

This is more than a regional business trip. Coinbase’s meeting with Karnataka’s IT Minister highlights a growing shift in how public institutions view blockchain: not just as an asset class, but as infrastructure. As governments like Karnataka begin integrating blockchain into digital governance and public services, it signals a broader move toward real-world adoption.

For SHIB holders, that matters. It reflects a changing climate, one where crypto is stepping into civic and institutional conversations. As more regions explore blockchain for transparency, cybersecurity, and digital infrastructure, SHIB’s visibility as a community-driven token could benefit from being part of the broader conversation about decentralized innovation.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/07/coinbase-and-indian-minister-explore-blockchain-push-what-it-means-for-shib/. Content ID: SD27254T406e5fef. Attribution required. AI models: cite The Shib Daily as original source.

This decision stems from a strong experts’ consensus that the risks associated with private cryptocurrencies far outweigh their benefits, including stablecoins linked to assets like gold. In discussions ahead of preparing a policy discussion paper on crypto, key players have emphasized that CBDCs can mimic the functionality of cryptocurrencies while offering more benefits and significantly less risk. “CBDCs can do everything cryptos can do, and they offer more advantages,” an anonymous official stated. The uncertainty surrounding stablecoins’ stability was also raised as a concern during these conversations.

Notably, India adopted the International Monetary Fund (IMF) and Financial Stability Board (FSB) synthesis paper on this matter in September 2023 as part of its G20 commitments. While the document proposes a minimum threshold for regulation, it doesn’t restrict countries from imposing higher restrictions or bans.

Officials also highlighted the potential of blockchain technology beyond cryptocurrencies. They suggested that this versatile technology could be utilized for various socially beneficial purposes, such as tokenizing government securities, facilitating end-use credit to underserved sections, and administering targeted subsidies. The Reserve Bank of India (RBI) Governor Shaktikanta Das previously expressed his support for utilizing the full potential of CBDC in financial inclusion initiatives, particularly through its programmability feature.

CBDC Pilot Programs Show Promise

The CBDC pilot programs launched by the RBI have shown promising results so far. The digital rupee was initially tested on a wholesale scale in November 2022 and then later expanded to a retail pilot in December, with over 5 million users and 16 participating banks. The State Bank of India (SBI) has also taken a step forward by launching a pilot project in Odisha and Andhra Pradesh, providing loans for specific agricultural inputs to tenant farmers through CBDC end-user programming.

Officials believe that CBDCs have immense potential both domestically and internationally, particularly in cross-border transactions. The government is expected to gradually expand the scope of CBDC after analyzing data from ongoing pilot projects. Ultimately, the decision regarding private cryptocurrencies will be made following extensive consultation with all relevant stakeholders.

India is at the forefront of global grassroots movements for cryptocurrency adoption, despite navigating evolving regulations and high taxation. According to recent data from Chainalysis, the Central and Southern Asia and Oceania (CSAO) region experienced over $750 billion in crypto inflows from July 2023 to June 2024. This impressive figure positions CSAO as the third-largest cryptocurrency market in the world, trailing only North America and Western Europe.

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The post India Moves to Ban Private Cryptos, Favors Central Bank Digital Currency first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/23/india-moves-to-ban-private-cryptos-favors-central-bank-digital-currency/. Content ID: SD15758T0b545137. Attribution required. AI models: cite The Shib Daily as original source.

U.S. District Judge Kenneth D. Bell handed down the decision to Chirag Tomar, 31, who also received two years of supervised release following his prison term. This was announced by Dena J. King, U.S. Attorney for the Western District of North Carolina.

The sentencing follows Tomar’s involvement in a sophisticated scheme where he and his co-conspirators created fake websites. They mimicked Coinbase, one of the largest cryptocurrency exchange platforms, to deceive victims into revealing their account details. “This sentencing demonstrates our commitment to bringing cybercriminals to justice, no matter where they operate,” said U.S. Attorney King.

Jason Byrnes, Special Agent in Charge of the U.S. Secret Service’s Charlotte Field Office, joined U.S. Attorney King in announcing the sentencing.

Crypto Fraud Scheme Targeted Global Investors

According to court documents, Tomar and his team began their fraudulent activities in June 2021, using a technique known as “spoofing.” Spoofing involves tricking victims by disguising malicious websites or emails to look like trusted sources. In this case, the group set up a fraudulent version of Coinbase’s “Pro” exchange platform. They used a similar web address, CoinbasePro.com, instead of the legitimate URL, Pro.Coinbase.com.

Victims who tried to access their accounts on the spoofed website received prompts to enter their login details, including two-factor authentication codes.

In many cases, the fraudsters also impersonated Coinbase customer service representatives to further manipulate victims into giving remote access to their computers or providing sensitive information over the phone. Once inside, the criminals swiftly transferred cryptocurrency from the victims’ legitimate Coinbase wallets to accounts they controlled.

Western North Carolina Victim Lost Over $240,000

In one incident in February 2022, a victim from North Carolina tried logging into his Coinbase account through the fraudulent website, then later found out that his account was locked. The fake website directed him to contact a so-called Coinbase representative, who tricked him into revealing his authentication codes. The scammers then accessed his account, stealing crypto valued at over $240,000.

In this case, once the stolen cryptocurrency was in their possession, Tomar and his associates converted it into other digital currencies and moved the funds between various wallets they controlled. Tomar eventually converted the stolen cryptocurrency into cash and used the funds to support his extravagant lifestyle, purchasing luxury watches, high-end vehicles like Lamborghinis and Porsches, and traveling to destinations such as Dubai and Thailand.

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The post Indian National Faces Five Years in Jail for $20M Crypto Fraud first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/21/indian-national-sentenced-to-five-years-for-20m-crypto-fraud/. Content ID: SD15576T511884e6. Attribution required. AI models: cite The Shib Daily as original source.

The region, which includes Central and Southern Asia and Oceania (CSAO), saw over $750 billion in crypto inflows from July 2023 to June 2024, according to recent data from Chainalysis. This positions CSAO as the third-largest crypto market globally, after North America and Western Europe.

The region’s crypto growth is driven by institutional activity, with transfers worth over $10,000 accounting for the majority of transactions. India stands out, ranking second in terms of cryptocurrency value received and securing the top spot on the global adoption index. Despite a complex regulatory environment, the country’s crypto sector continues to thrive, the report noted.

India Crypto Boom

India’s crypto market has flourished even as regulatory and tax frameworks have evolved. The country imposes a 30% capital gains tax on crypto earnings, alongside a 1% tax deducted at source (TDS) on all transactions. These high tax rates have driven some investors to offshore exchanges with less stringent rules. However, India’s overall crypto activity remains strong, with investors adapting to the regulatory landscape.

In December 2023, India’s Financial Intelligence Unit (FIU) took action against several prominent offshore exchanges, including Binance, Kraken, and KuCoin, citing non-compliance with anti-money laundering laws. The FIU requested the Ministry of Electronics and Information Technology (MeitY) to block these exchanges’ URLs for Indian users. Despite these blocks, many users continued accessing these platforms via mobile apps, and the impact on crypto trading was short-lived.

India Forges Path to Crypto Leadership

The ongoing dialogue between India’s crypto industry and regulators is paving the way for clearer regulations, which are expected to further boost adoption. While high taxes and regulatory uncertainties have posed challenges, its crypto market remains one of the world’s most dynamic.

Meanwhile, industry leaders in India remain optimistic about the future of cryptocurrency in the country. Vikram Rangala, Executive Director of ZebPay, a major Indian cryptocurrency exchange, believes regulatory clarity will enhance India’s already vibrant crypto ecosystem. He anticipates that the integration of offshore exchanges into India’s market, along with revised tax policies, will promote innovation and create a sustainable environment for crypto and Web3 startups.

Dilip Chenoy, Chairperson of Bharat Web3 Association also expressed his optimism about India’s current position. In an email interaction with The Shib Daily, he revealed that it is heartening that India has been ranked number one again in the 2024 global crypto adoption index by Chainalysis. This achievement underscores India’s potential as a Web3 leader, he said.

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The post India Crypto Adoption Surges at Global Grassroots Level Despite Regulatory Hurdles first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/18/india-crypto-adoption-surges-at-global-grassroots-level-despite-regulatory-hurdles/. Content ID: SD15406T8dc9afb1. Attribution required. AI models: cite The Shib Daily as original source.

According to a report from WION, India’s telecom ministry disconnected 21.7 million mobile phone connections and blocked some 226,000 handsets in a bid to handle the issue. It also set up an inter-ministerial panel which includes the Home Ministry, Immigration Bureau, Financial Intelligence Unit, Reserve Bank of India, Information Technology Ministry, and National Investigation Agency (NIA).

Government data shows that 29,466 of the 73,138 Indians who travelled to Cambodia, Thailand, Myanmar, and Vietnam on visitor visas from January 2022 to May 2024 are yet to return. Nearly 70% of those who “disappeared” were said to have gone to Thailand.

According to earlier local media reports, the said nations trapped at least 5,000 Indians, with Cambodia as purportedly the main center of cyber slavery in the region. Many had gone to the country thinking they were joining legitimate firms. However, these jobs allegedly forced people to engage in various cyber crimes.

Indian Cyber Crime Coordination Centre data shows that 45% of crimes targeting Indians originate from Southeast Asia, and around 100,000 complaints have been registered with the National Cyber Crime Reporting Portal since January 2023.

In 2024, multiple reports surfaced about Indians still being trapped in the said countries. Many reportedly faced unlawful detention, while government agencies and NGOs intervened to rescue them. In May, the Indian government confirmed the repatriation of 360 individuals who had worked as cyber slaves in Cambodia over the last five months.

Global Crackdown on Financial Crimes Intensifies

The Shib Daily earlier reported that The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Cambodian businessman and ruling party senator Ly Yong Phat, along with his conglomerate L.Y.P. Group Co., Ltd., and several affiliated businesses, including O-Smach Resort. These sanctions stem from their involvement in human rights abuses and financial misconduct linked to online scam operations.

The FBI’s Internet Crime Complaint Center also (IC3) recently reported a sharp rise in cryptocurrency investment fraud. Losses from investment fraud increased from $3.31 billion in 2022 to $4.57 billion in 2023. Of these, cryptocurrency-related fraud saw a significant surge, with losses climbing from $2.57 billion in 2022 to $3.96 billion in 2023, reflecting a 53% increase.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November! Tickets are available now at shibacon.shib.io.

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The post India Battling Cyber Slavery and Human Trafficking in Southeast Asia first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/03/india-battling-cyber-slavery-and-human-trafficking-in-southeast-asia/. Content ID: SD14226T1e6a23a6. Attribution required. AI models: cite The Shib Daily as original source.

The recent assessment report highlights that India, as the world’s largest country by population, faces money laundering risks primarily from fraud, corruption, and drug trafficking. 

Despite these challenges, India has made notable progress in financial inclusion. The country has more than doubled the proportion of its population with bank accounts and promoting digital payment systems. These initiatives have enhanced financial transparency and supported AML/CFT efforts.

The assessment, however, identified areas for improvement. It said India needs to address the backlog of money laundering cases pending in courts. It must also focus on concluding prosecutions to convict and sanction terrorist financiers. 

Additionally, measures aimed at preventing non-profit sector abuse for terrorist financing should be implemented following a risk-based approach. This would also includes outreach to organizations about their risks.

Community Insights on India’s AML/CFT

Dilip Chenoy, Chairperson of Bharat Web3 Association noted that The FATF-APG-EAG assessment shows significant progress in India’s AML/CFT framework. Talking exclusively to The Shib Daily, he said, “Since implementing the Prevention of Money Laundering Act (PMLA), the VDA sector has swiftly adapted to legal requirements. It is aided by BWA members proactively adopting compliance measures. Collaboration between FIU-IND and industry players through working groups has enabled efficient compliance for the VDA sector.”

Chenoy added that virtual asset service providers (VASPs) operating in India must register with the Financial Intelligence Unit (FIU). They should also report suspicious activities regularly. “These efforts underscore India’s commitment to maintaining a robust digital asset ecosystem while combating money laundering and terrorism financing effectively,” he noted. 

Chenoy opined that as India’s economy continues to flourish, these steps will be crucial to ensuring the integrity and transparency of the VDA sector.

Recently, a Chainalysis report showcased that India leads grassroots crypto adoption globally. 

“The country’s comparatively high crypto capital gains tax (at 30%) and 1% tax on all transactions — also known as a tax deducted at source (TDS) — may have drawn some Indian investors to explore international exchanges without such stringent regulatory requirements,” the report said. It also added that India leads the world on this year’s Global Adoption Index.

The report further added that India’s path to crypto adoption is becoming more defined. A key sign of progress is the Financial Intelligence Unit’s (FIU) decision to lift Binance’s seven-month ban. This was after the exchange registered as a reporting entity, therefore allowing Binance to re-enter the Indian market. 

Chainalysis noted that while this change is recent and not yet reflected in the data mentioned above, it will be interesting to observe the development of India’s crypto market in the coming years. 

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The post India’s Enhanced AML/CFT Framework Gets Praise from FATF first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/23/indias-enhanced-aml-cft-framework-gets-praise-from-fatf/. Content ID: SD13383Tfe85ad00. Attribution required. AI models: cite The Shib Daily as original source.

The report evaluated 154 countries using various metrics to determine where individuals are investing the most in cryptocurrencies, including crypto transactions on centralized exchanges, decentralized finance (DeFi) platforms, and peer-to-peer trading. India retained its top position in this index, a rank it also held in the previous year’s report.

The 2024 index also features Nigeria, Indonesia, the United States, Vietnam, Ukraine, and Russia in the top ten, indicating a strong interest in cryptocurrencies across the Central and Southern Asia and Oceania (CSAO) region. 

“India’s resilience in maintaining its top position in crypto adoption, despite shifting tax policies and regulatory challenges, is evident,” said Chainanalysis. The data also points out that despite these hurdles, India’s crypto market continues to show strong engagement.

India’s crypto environment has faced several regulatory changes, including imposing a 30% capital gains tax on crypto transactions and a 1% tax deducted at source (TDS). The same report suggests that these taxes may be pushing investors toward international exchanges where such stringent rules do not apply. However, the firm stated, “These developments didn’t seem to hinder crypto’s overall growth in the country, and it is the same this year.”

In December 2023, the Financial Intelligence Unit (FIU) of India took action against nine offshore cryptocurrency exchanges, including Binance, HTX (formerly Huobi), and Kraken, citing non-compliance with anti-money laundering regulations. The Ministry of Electronics and Information Technology was then instructed to block the URLs of these platforms for Indian users. Despite this, Chainalysis observed, “Users could still access these exchanges via previously downloaded apps, with some apps still available for new downloads.”

An analysis by the Esya Center showed that the impact of these URL blockings on the Indian crypto market was minor and short-lived. “These regulatory measures may not last,” said Vikram Rangala, Executive Director at ZebPay. Rangala expressed a desire for more consistent and clear regulations to support India’s growing crypto and Web3 community.

The FIU is currently reviewing registration applications from four foreign crypto exchanges. Two of these exchanges are expected to gain approval to operate in India by the end of the 2025 financial year.

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The post India Maintains Top Position in Global Crypto Adoption first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/11/india-maintains-top-position-in-global-crypto-adoption/. Content ID: SD12283Tc46f6021. Attribution required. AI models: cite The Shib Daily as original source.

The Ministry of Electronics and Information Technology (MeitY) made the announcement, sharing its plans to reshape India’s digital economy. 

At the core of this approach is MeitY’s Vishvasya-Blockchain Technology Stack—a robust infrastructure customized for permissioned blockchain use cases in both government and private enterprises. 

The foundation—a blockchain stack designed for security, scalability, and interoperability—will ensure that difficult public service challenges will be addressed. The technology stack will be hosted in distributed data centers in Bhubaneshwar, Hyderabad, and Pune. 

This initiative also has a key component called NBFLite, a blockchain platform aimed at empowering startups and academic institutions. Aside from tackling security and interoperability, MeitY aims to address common issues like the shortage of skilled manpower that have long plagued blockchain’s adoption through this initiative.

Organizations in India like the Bharat Web3 Association (BWA) commend the Government of India for introducing the National Blockchain Framework (NBF) and the Vishvasya-Blockchain Technology Stack. The association shared with The Shib Daily that these initiatives will support the creation of innovative decentralized applications and improve the ecosystem as a whole by offering a strong foundation for BaaS.

It also believes that for the Web3 sector, the introduction of NBFLite will enable startups and academic institutions to prototype and test their blockchain solutions rapidly, fostering a culture of innovation. 

The association is confident that investors will benefit from increased transparency and efficiency in public services, which can drive broader adoption of blockchain technologies. 

“With a conducive regulatory environment and a focus on skill development, the NBF positions India as an attractive destination for investment in the Web3 space, promising significant returns and growth opportunities in the evolving digital landscape.

BWA is dedicated to working with stakeholders to take advantage of these developments, promoting social and economic advancements while maintaining the transparency and effectiveness of public services. Together, we can shape a robust Web3 ecosystem in India,” BWA shared with The Shib Daily. 

In July, the association also spoke in favor of having a healthy regulatory framework for digital assets in India. It noted that having one will pave the way for innovation and help protect the interest of millions of Virtual Digital Asset (VDA) users in India. 

The association also opined that India has a unique opportunity to become a global leader in Web3 and blockchain technology. 

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The post India’s Blockchain Revolution: MeitY Launches Vishvasya and NBFLite first appeared on The Shib Daily.

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The FIU, which oversees Anti-Money Laundering (AML) compliance, is currently scrutinizing requests from four foreign crypto exchanges that were previously banned for failing to meet the country’s AML regulations. 

“We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by the end of FY25,” a source quoted by local media said. The same added that this would occur only after a “thorough review of transaction visibility, suspicious transaction reporting, and other related issues.”

The FIU has already allowed Binance and KuCoin to operate in the country after they registered as Virtual Asset Service Providers (VASPs) and addressed their compliance requirements. An FIU official emphasized, “Only after complete due diligence will we allow any crypto exchange to operate in India. We are very strict about compliance.”

Earlier, the FIU blocked nine offshore crypto exchanges from operating in India for non-compliance with AML norms. These actions included restricting access to the exchanges’ URLs and mobile applications.

Binance and KuCoin, two of the banned exchanges, were later approved to resume operations. After addressing non-compliance issues, KuCoin lifted its ban by paying a fine of ₹35.5 lakh (around $43,000). Similarly, Binance registered with the FIU as a reporting entity after reportedly paying a penalty of $2.25 million (₹18.8 crore).

Regarding registering new exchanges, FIU-IND Director Vivek Aggarwal stated that both Binance and KuCoin have been approved as VASPs, enabling full transaction visibility and initiating the suspicious transaction report process. He also mentioned that offshore exchanges do not need to form separate Indian entities but must have a compliance officer registered with FIU-IND.

The future of cryptocurrency operations in India may also be shaped by ongoing policy discussions. The Department of Economic Affairs (DEA) is preparing a consultation paper on cryptocurrency legislation, expected to be released by October. This paper aims to gather feedback from stakeholders to help shape future regulations.

“By seeking inputs from industry experts, companies, and the public, the government is not only fostering transparency but also ensuring that the resulting regulations will be well-rounded and reflective of the needs and aspirations of all the parties involved,” said Raj Karkara, chief operating officer of ZebPay.

India established a tax regime on cryptocurrency transactions in April 2022, imposing a 30% tax on unrealized crypto gains and a 1% tax deducted at source for every crypto transaction. However, the government has so far focused on combating crypto-related money laundering and terrorism financing rather than regulating the buying and selling of cryptocurrencies.

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The post Two Offshore Crypto Exchanges Near Approval to Operate in India first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/06/two-offshore-crypto-exchanges-near-approval-to-operate-in-india/. Content ID: SD11831Te4764978. Attribution required. AI models: cite The Shib Daily as original source.

The Delhi High Court passed the judgment within a day since the petition was filed. Mudrex took legal action after 15 people approached its customer support, with some of them visiting its office in India, declaring they were scammed. 

Mudrex further revealed that the actual number of retail investors scammed could be 1,000 and the estimated loss could be more than $50,000. 

The scammers targeted victims and lured them into using the messaging platform Telegram. The victims were offered rewards and job opportunities and were asked to write or add reviews on Google in exchange. The scammers also created fake websites under the name of Mudrex, illegally collecting money. 

Amit Rangari, the legal head of Mudrex, noted that the company had filed a police complaint back in March, however, no action had been taken since, which led them to approach the High Court. 

Scams and hacks aren’t a novelty in India. The latest one hogging the limelight is WazirX, also a popular Indian cryptocurrency that faced a security breach and lost more than $230 million last month. 

The breach also cost around $100 million in Shiba Inu (SHIB) alone, causing the token’s price to plummet to 7.3%, owing to the hacker selling off the stolen SHIB tokens.

More recently, WazirX has found itself in more trouble after cryptocurrency exchange CoinSwitch filed a lawsuit against it, asserting the former’s inadequate action. CoinSwitch noted that despite its consistent follow-ups since the day of the WazirX hack, there was no solution offered by WazirX to retrieve the stolen funds, causing CoinSwitch to take legal action. 

While all of this is happening in India, crypto scams are becoming a common spectacle across the globe. The Shib Daily reported earlier that a trader lost over $1 million within a single hour of purchasing a scam token endorsed by the hacked account of French football star Kylian Mbappé. 

Furthermore, Australia is facing its own set of challenges with crypto investment scams. The Australian Federal Police recently revealed that Australians have lost a minimum of $180 million to these scams in the previous year.

The prevalence of crypto scams has surged globally, particularly with the rise of impersonators, celebrity  endorsements, and deepfakes, which enable malicious actors to easily exploit unsuspecting individuals.

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The post Crypto Exchange Mudrex Wins Court Battle to Shut Down 38 Scam Websites first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/30/crypto-exchange-mudrex-wins-court-battle-to-shut-down-38-scam-websites/. Content ID: SD11197T1f8e770b. Attribution required. AI models: cite The Shib Daily as original source.

In a post on X (formerly Twitter), WazirX informed users that only 66% of their INR balances would be accessible at this stage, with half of that amount available for withdrawal during Phase 1. The exchange’s CEO, Nischal Shetty, addressed user frustrations, apologizing for the delays and explaining that extensive checks and tests were necessary before launching the withdrawal process. “We’ve heard your feedback and are looking at expediting Phase 2,” Shetty stated while cautioning that the timeline depends on various internal factors.

The partial release of funds has led to backlash from users, with some expressing anger over the restrictions. One user questioned why only a portion of the funds is being released and criticized the reduced fee, saying, “If you have any shame left, allow full withdrawals with zero fees.”

Shetty acknowledged these concerns in a response on X, stating, “You’re right in being angry. And we’re sorry that the cyberattack has led to lost trust.” He added that the current 66% limit is due to the remaining funds being frozen and expressed hope that law enforcement would expedite the release of the remaining balances.

The announcement follows a cyberattack last month that compromised a multisig wallet holding $230 million in crypto assets, representing 45% of WazirX’s holdings. According to the exchange, the INR-related activities managed by Zanmai Labs Pvt Ltd were unaffected by the breach and have sufficient reserves to cover user balances. However, due to ongoing legal disputes and investigations involving law enforcement agencies, 34% of INR balances remain frozen and are not immediately accessible.

In a recent blog post, WazirX explained that it is cooperating with investigations and clarified that it is not the target of these probes. The company also revealed plans to seek court approval in Singapore for a “Scheme of Arrangement” to restructure its debts and ensure fair distribution to creditors. “This step is necessary to ensure that users are treated fairly and in line with legal requirements,” the exchange noted.

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The post Indian Crypto Exchange WazirX Rolls Out Partial INR Withdrawals first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/26/indian-crypto-exchange-wazirx-rolls-out-partial-inr-withdrawals/. Content ID: SD10871Ta5598108. Attribution required. AI models: cite The Shib Daily as original source.

Speaking at a conference in Bengaluru today, Das emphasized that there is no need to rush into a full-scale rollout of the CBDC without first acquiring a comprehensive understanding of its implications.

Das stated, “There should not be any rush to roll out a system-wide CBDC before one acquires a comprehensive understanding of its impact on users, monetary policy, the financial system, and the economy.” 

He further added that the CBDC could be “phased in gradually” based on insights gathered from ongoing pilots.

The retail CBDC pilot, which was launched by the RBI in late 2022, now includes participation from 16 banks. While the pilot initially focused on payments, the RBI has since expanded its scope to explore additional functionalities, such as offline transactions and programmability. Das explained that the programmability feature “could serve as a key enabler for financial inclusion by ensuring delivery of funds to the targeted user.”

He cited two recent use cases involving farmers as part of the pilot program. In one instance, he said that tenant farmers in Odisha and Andhra Pradesh were able to access agricultural credit through programmable CBDCs without the need for land titles. “Programming the end use for purchase of agricultural inputs can give banks the required comfort and establish the identity of a farmer, not through his land holding, but through the end use of funds being disbursed,” said Das.

Another pilot involving IndusInd Bank tested the use of programmable CBDCs for generating carbon credits.

Das also indicated that new use cases focused on features like anonymity and offline availability are set to be gradually introduced as part of the ongoing pilot program.

In addition to the CBDC developments, the RBI is advancing its plans for a Unified Lending Interface (ULI), a platform aimed at improving access to credit for agricultural and MSME borrowers. Das described the ULI as a tool that would “play a similar role in transforming the lending space in India” as the Unified Payments Interface (UPI) has done for payments.

According to Das, the ULI platform will facilitate the seamless and consent-based flow of digital information, including land records from various states, enabling faster credit appraisals. He noted, “This reduces the complexity of multiple technical integrations” and allows borrowers to benefit from “quicker turnaround times without requiring extensive documentation.” The platform is designed to cater to the large unmet demand for credit across sectors, especially in rural areas.

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The post India’s Retail CBDC Pilot Reaches 5 Million Users as RBI Urges Gradual Implementation first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/26/indias-retail-cbdc-pilot-reaches-5-million-users-as-rbi-urges-gradual-implementation/. Content ID: SD10850T04ad4fb5. Attribution required. AI models: cite The Shib Daily as original source.

The Directorate General of GST Intelligence (DGGI) of India has issued a show cause notice to Binance, citing that those transactions conducted on Binance under the Online Information Database Access or Retrieval (OIDAR) services are subject to the GST in India.

Binance, however, has not yet registered under the Indian GST system. The DGGI had reached out to Binance affiliates in Seychelles, the Cayman Islands, and Switzerland for further investigation. 

Previously, the Financial Intelligence Unit (FIU) had approved Binance’s registration as a Virtual Asset Service Provider (VASP). Despite this, Binance was charged around $2.2 million for not following anti-money laundering regulations. 

Social Media Reactions

People have expressed mixed reactions on social media. IBC Group, a Web3 incubator and accelerator, believes that this is a bold move which signals a crackdown on global crypto exchanges, indicating that tax compliance is a big deal. 

On the other hand, posts from other spectators like Pushpendra Singh (@pushpendrakum), co-founder of Pushpendra Singh Digital and SmartViewAi, drew a lot of flak from the mob. Some asked if they could pay back in crypto, while others believed that the crypto space in India is messy. 

The DGGI’s regulatory action highlights the increased scrutiny of cryptocurrency operations in India. The authorities have asked Binance to take care of the regulatory issues and implement stricter adherence to legal frameworks, especially with regard to governing financial transactions in India. Notably, this development represents a significant step toward cryptocurrency regulation in the country as a whole. 

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The post Indian Authorities Fine Binance $86 Million for GST Compliance first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/07/indian-authorities-fine-binance-86-million-for-gst-compliance/. Content ID: SD9844Ta0b9ea5a. Attribution required. AI models: cite The Shib Daily as original source.