Indian Exchanges are facing the heat!

Bureau

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Quote from: elevates on June 01, 2023, 06:33:33 AM

Quote from: pakhitheboss on June 01, 2023, 04:33:47 AM

The government of India is not going to stop until they completely dismantle cryptocurrency exchanges in India. Found this image on one of Indian influencers telegram channel. I am assuming it was taken from an article published on TOI.

Crypto transfers from Indian exchanges to private wallets will now have to go through identity check. This is being done to prevent money laundering. I have not heard anything as of now from Indian exchanges but this policy will be a big blow to Indian exchanges. Those who are genuine might shift to international exchanges for crypto to crypto transaction. The only purpose of Indian exchanges would be to convert crypto to fiat. I am sure volumes on these exchanges would take a good hit.

Another tactic to pressurize India exchange and eventually trying to halt thier services. Situation look very bad at the moment. Why does the government of India always feel that crypto is the root cause of money laundering? They are basically asking the community to trade on International exchanges. When they will start doing that the next step by the government would be to introduce special rules under FEMA. It is better to move out of India to a crypto friendly country. Setup an entity in that country and then send INR from that country to India. Another option is to permanently settle in that country.

Lol! Indian government is encouraging the community to start dealing in cash. I have a feeling we might find a telegram channel dedicated to F2F transactions. There one problem with F2F USDT selling price and buying price would be very bad than Indian exchanges.

elevates

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Quote from: pakhitheboss on June 01, 2023, 04:33:47 AM

The government of India is not going to stop until they completely dismantle cryptocurrency exchanges in India. Found this image on one of Indian influencers telegram channel. I am assuming it was taken from an article published on TOI.

Crypto transfers from Indian exchanges to private wallets will now have to go through identity check. This is being done to prevent money laundering. I have not heard anything as of now from Indian exchanges but this policy will be a big blow to Indian exchanges. Those who are genuine might shift to international exchanges for crypto to crypto transaction. The only purpose of Indian exchanges would be to convert crypto to fiat. I am sure volumes on these exchanges would take a good hit.

Another tactic to pressurize India exchange and eventually trying to halt thier services. Situation look very bad at the moment. Why does the government of India always feel that crypto is the root cause of money laundering? They are basically asking the community to trade on International exchanges. When they will start doing that the next step by the government would be to introduce special rules under FEMA. It is better to move out of India to a crypto friendly country. Setup an entity in that country and then send INR from that country to India. Another option is to permanently settle in that country.

pakhitheboss

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The government of India is not going to stop until they completely dismantle cryptocurrency exchanges in India. Found this image on one of Indian influencers telegram channel. I am assuming it was taken from an article published on TOI.

Crypto transfers from Indian exchanges to private wallets will now have to go through identity check. This is being done to prevent money laundering. I have not heard anything as of now from Indian exchanges but this policy will be a big blow to Indian exchanges. Those who are genuine might shift to international exchanges for crypto to crypto transaction. The only purpose of Indian exchanges would be to convert crypto to fiat. I am sure volumes on these exchanges would take a good hit.

Heisenberg_Hunter

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As @elevates pointed out, large volume traders and individuals or businesses who have immersed their feet too much into the crypto space have already moved onto other countries where the regulatory framework is much more favorable or taxation of cryptocurrencies are far lower than India. Interestingly, CoinDCX has been playing favorable to the Indian government since the beginning as they never allow us to withdraw nor deposit crypto which goes completely against the aphorism of decentralized cryptocurrencies Tongue

Additionally, It is becoming increasingly difficult for regulatory crypto businesses such as exchanges to survive in our country whereas, businesses which consist mostly of backend work have made India their prominent destination to hire blockchain engineers. WazirX founders, on the other hand have generated tremendous amount of wealth with their false claims and marketing propaganda and it won't really be a surprise if they close the exchange sooner than later.

IMO, if you believe in the potential of cryptocurrencies just like how geeks believed in the potential of Internet in 1990s it is better to take steps and move out of the country ASAP.

elevates

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As soon as the government announced the cryptocurrency tax slab, such a situation would was predictable. Those traders who were generating good volumes have now shifted to crypto favouring countries. Those who could not started using International exchanges. Those who had no options continued using Indian exchanges.

I feel WazirX would be the first exchange which might officially shut shop. Considering the founders leaving the country and the multiple regulatory cases on them. They haven't even changed their managment after those case. They are the ones who have downsized their staff and are looking for ways to cut cost.

I agree the Indian cyber cell has been very proactive with P2P transactions. If they find a single account linked with fraud they are blocking all accounts that fall under that transaction chain. The next issue is dealing with the cops who do not know about cryptocurrency. The situation is not habitable in India for anyone into crypto business.

Bureau

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Recently Coindesk published an article: Indian Crypto Exchanges Are in Survival Mode, Trying to Extend Their Runways

Did anyone here read this article? Coindesk interviewed six prominent exchanges about their financial status. Their answers point towards the direction that they are all in survival mode. The present situation has arised after the government's new rules on cryptocurrency tax.

It's important to remember that India might be the first country in the world where there is a tax infrastructure built before a regulation framework has been introduced on cryptocurrency.

The current status of WazirX hints towards a possible closure of it in the coming months. I have also read that Bitbins has halted withdrawals. The current situation of P2P scams and hyper active activities of cyber cell hints towards a shadow ban on crypto business. In few months time either cryptocurrency users will leave India or will stop investing in it.

What do you think is going to happen in the next six month?

Thansk.

Topic: Indian Exchanges are facing the heat! (Read 65 times)