11 Tweets 3 reads Sep 02, 2024
๐Ÿšจ BREAKING: ๐Ÿ‡ฎ๐Ÿ‡ณ Explosive Revelations on India's #Crypto Clash ๐Ÿ˜ณ
๐Ÿ‡ฎ๐Ÿ‡ณ The Indian government's BLOCKING of 9 offshore exchangesโ€”triggered by a SECRET letter from Bharat Web3 Association - Sources ๐Ÿ˜ฑ
A thread ๐Ÿงต
1๏ธโƒฃ Bharat Web3 Association's Request:
๐Ÿ‘‰ India's #crypto advocacy body, Bharat Web3 Association, formally requested the government to take action against 9 offshore exchanges, citing the need for a level playing field and compliance with financial regulations.
2๏ธโƒฃ Show Cause Notices Issued:
๐Ÿ‘‰ The Indian government responds by issuing show cause notices to exchanges including #Binance, KuCoin, Huobi, Kraken, Gateio, Bittrex, Bitstamp, MEXC Global, and Bitfinex, setting a two-week response window.
3๏ธโƒฃ Reasons for Action:
๐Ÿ‘‰ The move aligns with efforts to regulate offshore exchanges, ensuring compliance with India's Financial Intelligence Unit (FIU) regulations and addressing concerns related to money laundering and investor protection.
4๏ธโƒฃ Advocating for Fairness:
๐Ÿ‘‰ Indian #crypto exchanges, represented by BWA, emphasize the need for a fair and level playing field, particularly regarding the 1% tax deducted at source (TDS) issue, aiming to protect their businesses from offshore competition.
5๏ธโƒฃ Call for Compliance:
๐Ÿ‘‰ The letter from BWA also requests offshore exchanges to establish an Indian entity, deposit applicable TDS, and, in case of non-compliance, suggests restricting access to platforms on app stores and blocking IP addresses.
6๏ธโƒฃ Unprecedented Move:
๐Ÿ‘‰ The advocacy body's direct involvement in triggering government action against offshore exchanges is unusual, highlighting the complexity of India's #crypto regulatory landscape.
7๏ธโƒฃ Level Playing Field:
๐Ÿ‘‰ Indian exchanges stress the importance of fair competition, urging the government to address challenges faced by local platforms, especially after the imposition of taxes, which led to a significant migration of traders to offshore exchanges.
8๏ธโƒฃ Protecting Users:
๐Ÿ‘‰ Industry leaders believe that actions against offshore exchanges will mitigate risks, protect users from potential scams, and contribute to the development of a secure Virtual Digital Assets ecosystem.
9๏ธโƒฃ Summary:
๐Ÿ‘‰ The unfolding situation reflects the ongoing dialogue between the government, advocacy bodies, and #crypto exchanges in India.
๐Ÿ‘‰ Stay tuned for further updates as the regulatory landscape evolves.
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