India Cracks Down on Crypto Owners

What happened

After raiding crypto exchanges, Indian regulators now target wealthy crypto owners. Securities and Exchange Board of India (SEBI) announced new initiatives regarding ICOs which it describes as “Ponzi Schemes.”

Why are they doing this?

Indian regulators suspect the owners of Bitcoin and other cryptocurrencies in tax evasion. The reports show that crypto exchanges are being asked about ‘whale’ crypto investors, with around half a million users under suspect.

Why is it important?

India took a weird position on crypto. There are no KYC nor anti-money laundering (AML) requirements on crypto exchanges. At the same time, SEBI is expected to actively prosecute ICOs within the country soon.

What can we learn from it

  • Perhaps, the strong Bitcoin rate has stimulated the regulatory activity within the country – but seems like there is no definitive approach within the government agencies.
  • The case brings back the discussion around the taxation of crypto gains.

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