The Enforcement Directorate of India has taken a step to seize $115.5 million in the crypto sphere under the speculation of money laundering cases. A few crypto ventures may have been spooked, but the measure ensures that the interests of investors and crypto platforms are safe at every step.
As of now, five culprits are under custody, with WazirX running with a warning over its expensive transaction fees. The Ministry of Finance finds the crypto market problematic, with theft cases that are worrisome for everyone involved. A non-Indian situation rings a bell – FTX collapse has taken the crypto market by storm, and SBF is under investigation for 8 fraudulent charges. Unrelated but countries across the globe are on guard since the ways in which loopholes are exploited have been exposed.
ED’s investigation has so far given them the power to seize $115.5 million, and the department is taking every possible action to provide a decent level of tranquility.
The Indian Government has not completely sidelined the crypto market. There is a level of commitment that comes from the authorities. This is evident from the fact that the Government has placed rules to monitor and improve the activities of digital assets.
A 30% tax with 1% TDS is at the center of controversy, with every big cryptocurrency exchange in India in a state of fear. Furthermore, the crypto exchanges feel that the tax provision will only encourage customers to look for a foreign alternative. Nischal Shetty has spoken in favor of security measures in his recent tweet and has also earlier expressed his concern over the tax application on Virtual Digital Assets.
No matter the situation and time, platforms involved in providing NFTs, custody wallets, and crypto exchange services are to ensure that they cooperate with the investigations being done by relevant authorities.
The roles have been divided into two parts, with companies having to ensure that they operate their services after concluding the KYC process for their customers and authorities looking to issue licenses and supervise AML/CFT services. The New Delhi region in India has sought an exemption from the KYC process for its digital currency environment.
Seizing $115.5 million puts India’s ED shows how strong the stand can be of regulators if needed. Money laundering has become a way, and the crypto market is suffering because of it. ED’s measures in such situations put the department under the spotlight for a lot of appreciation.