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WazirX: India’s ED Unfreezes Crypto Exchange’s Bank Account

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WazirX brings some good news to its users. After more than a month, India’s financial crime-fighting agency announced on Monday that WazirX’s bank accounts had been unfrozen. The exchange is connected to Binance, the largest digital currency exchange in the world.

The company was under investigation by the federal Enforcement Directorate (ED) last year for alleged violations of foreign exchange laws, and its assets worth $8.16 million worth of rupees were frozen. View More

The exchange claimed that it is now able to carry on with regular banking operations.

“After an in-depth internal investigation, WazirX noticed that most of the users whose information was sought by ED were already identified as suspicious by WazirX internally and were blocked in 2020-2021.”

The exchange stated in a blog.

WazirX stated that it cooperated with the investigators

According to the exchange, it has worked with the investigators by giving them all the pertinent facts, information, and documentation regarding the alleged accused businesses that used its platform.

Changpeng Zhao, the chief executive of Binance, revealed last month that the purchase of WazirX, which was announced in 2019, was never finalized. But CEO Nischal Shetty was of the opinion that the deal was completed.

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WazirX: India's ED Unfreezes Crypto Exchange's Bank Account 2

Finance Minister Nirmala Sitharaman presided over a meeting on September 8 about the apps, which also witnessed participation by the Deputy Governor of RBI, and brought the “illegal loan apps” scam with connections to China into the public eye.

The ED raided the exchange’s director Sameer Mhatre’s properties on August 5 for reportedly assisting “approximately 16 accused industry players in laundering the criminal proceeds using the crypto route,” freezing $8.1 million in assets held by the exchange.

BitConnect Founder Under Investigation by Indian Police Following Indictment in the US

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BitConnect founder seems to be in trouble. Indian authorities are currently looking into Satish Kumbhani, the creator of the bitcoin investment website BitConnect, for the multi-million dollar fraud.

According to reports, Kondhwa Budruk, a lawyer from Pune, reported the incident to the cybercrime police on August 16.

As per the initial information report (FIR), the lawyer allegedly lost close to 220 bitcoins, which are roughly worth $5.14 million on the open market. Kumbhani (36) and six other people have been named by the attorney. According to the report, no arrests have reportedly been made thus far.

Fugitive BitConnect Founder Kumbhani Indicted in US Website
BitConnect Founder Under Investigation by Indian Police Following Indictment in the US 4

BitConnect founder was earlier charged with Ponzi scheme allegations

The BitConnect founder was charged by a federal jury in San Diego earlier in February on charges of running a Ponzi scheme. According to this, the founder was discovered to have stolen up to $2.4 billion from later investors by using their money to pay off early investors.

The FIR claims that the complainant in this instance was defrauded of both his initial investment of 54 bitcoins and the returns of 166 bitcoins, which he was reportedly compelled to reinvest in the sites between 2016 and June 2021. Kumbhani and his friends reportedly defrauded investors in a virtual currency scheme, according to senior police inspector DS Hake.

The report was released a few days after Nirmala Sitharaman, India’s finance minister, expressed new worries about investing in virtual assets. “The government has issued an alert. Sitharaman cautioned the general public and startup business owners, “I think all of us will have to express our ideas and act with a little caution on this.

Her remarks also follow an ongoing investigation in which the Indian Enforcement Directorate (ED) froze the bank account of one of the directors of Zanmai Lab Private Ltd, the company that runs the Indian cryptocurrency exchange WazirX, and blocked bank assets worth approximately $46 million that belonged to the troubled crypto exchange Vauld.

India Might Add 28% To Its Existing Crypto Tax

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People with knowledge of the situation indicated that an Indian cabinet panel will meet next week to talk about imposing a goods and services tax on cryptocurrency transactions.

The council, made up of the finance ministers of the federal government and the states, is looking to expand the tax net in order to more effectively track transactions involving virtual digital assets, according to the people, who declined to be named due to restrictions on speaking with the media. Beginning on June 28, the panel will convene for two days in Chandigarh, in northern India.

The individuals added that although conversations may be done about including it in the highest tax bracket of 28 percent, the panel is unlikely to decide on a rate in the forthcoming meeting.

India thinks a hefty 30% tax is not enough

In an effort to gauge the extent of the local cryptocurrency market and keep track of users, India’s Finance Minister Nirmala Sitharaman levied a 30 percent tax on revenue from the transfer of virtual assets and a 1 percent source tax on all cryptocurrency transactions earlier this year. The action was perceived as resolving doubt over the legality of cryptocurrency transactions.

Due to the ambiguity around whether digital currencies should be treated as products or services and the absence of a legal framework, there is still uncertainty over the implementation of a sales tax on them.

We previously reported that the federal government is already working on legislation to either regulate or strengthen regulations. However, it is envisaged that this would only happen until a worldwide agreement on the regulation of such assets emerges.

As global central banks have started to raise interest rates to rein in growing inflation, digital currencies and other risky assets have been under attack all year. This year, Bitcoin has decreased by almost 50%, while Ether has decreased by 70%

Turkish Cryptocurrency Exchange Bitay Marks Its Entry Into The Indian Market

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Bitay a Turkish Cryptocurrency Exchange is set to enter the Indian market to tap the rapid usage of Cryptocurrency in the country.
According to Bitay, it is going to comply with India’s proposed Cryptocurrency tax guidelines. The exchange with its wide range of customer base of approximately 1 million worldwide has also set up an office in Gurgaon, India.
As per sources, the exchange plans to reach out to the population between the ages of 21 and 35 in cities such as Delhi, Mumbai, Chennai, Kolkata, Pune, Hyderabad, and Bangalore, Indore, Patna, Lucknow, and Jaipur.
Speaking on the new development, Niyazi Yilmaz, the CEO of the exchange, stated,

“The company embraces and welcomes the decision of the Govt of India of laying a 30 percent tax on Cryptocurrency profits and 1 percent TDS beginning in July”.


Yilmaz added that through their initiatives, they are going to attract Indian merchants and investors. Early users shall also receive an Airdrop after they have completed their KYC on the exchange platform.
In addition to this, Yilmaz also pointed out its goal to reach out to the millennial generation, which constitutes 30 percent of the population and generates 38 percent of the total gross income.

Bitay says “Namaste India!”


A few days back, the firm tweeted on its official handle “Namaste India. Our localization starts with India.”
Besides India, the trading platform also plans to expand into other nations such as England, the United States, the Netherlands, and Estonia. It claims to have licenses in 12 states in the US.
Not limited to cryptocurrency and trading activities, Bitay has also extended its operations into other initiatives and products namely Game, Bitay Academy, Bitay NFT Platform, and Bitay Visa Card.
This Cryptocurrency exchange based in Istanbul Turkey further claims to keep customer assets in cold storage such as hardware wallets rather than paper wallets and PCs without internet access.

India’s Two Crypto Experts Busted for Looting Crypto

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Two crypto experts of India were apprehended by the Pune Police’s Cyber Crime Cell, who allegedly drained wallets that were supposedly under investigation by the police.

According to local media sources, Pankaj Ghode and Ravindranath Patil, two alleged cyber-crime professionals, may have siphoned off substantial sums of cryptocurrency from a Bitcoin Ponzi scam that took place in 2018.

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India’s crypto experts stole from the loot

Since last year, the two specialists, one of whom was a former Indian Police Service officer, have reportedly been supporting the Pune police’s Special Inquiry Team (SIT) in the investigation.

According to the report, the crew seized 241.46 bitcoins, 452 bitcoin cash, and 94 Ethereum. However, they are now suspected of moving millions of dollars in cryptocurrency from the accused’s wallets to personal accounts. According to the study, 237 bitcoins from the funds have been traced so far.

As part of their investigation into an alleged 900 bitcoin difference, the police have reportedly recovered approximately $770,000 in 34 different cryptocurrencies. The former officials, meanwhile, will be tried for a variety of violations and are currently in judicial custody. In addition, the alleged crypto specialists have been charged with a 4,400-page charge sheet.

India and its stance on crypto

The Securities and Exchange Board of India (SEBI) recently provided an update on the condition of crypto regulation in India to the Parliamentary Standing Committee on Finance.

“Because crypto assets are kept in decentralized distributed ledgers, which are nested in computer nodes all over the world,” the agency wrote, “there is a high risk of illicit exchanges not in accordance with any regulatory framework.”

In the past, SEBI has advised celebrities to avoid advocating crypto assets in order to protect investors.

The watchdog emphasized more controls this time, saying, “A digital currency operates as a bridge between the fiat currency of the foreign jurisdiction and the Indian rupee.”

“One goal of bringing crypto trading platforms under regulatory scrutiny could be to offer AML/CFT/KYC reporting; this can be accomplished by registering the companies as money changers, authorized dealers, or FX dealers,” according to the research.

Meanwhile, the central bank is waiting for the government to disclose its crypto consultation paper, which it has been critical of since its inception.

RBI Says That India’s CBDC Will Go Hand in Hand With the Monetary Policies

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The debut of India’s Digital Rupee CBDC, which is slated to take place in the current fiscal year 2022-23, is highly anticipated by the investors of the country.

According to a report produced by the Reserve Bank of India (RBI), the CBDC will be in line with the country’s current monetary policies and payment systems.

The Reserve Bank of India (RBI), which will have responsibility for the Digital Rupee, intends to use a graded approach in line with the country’s financial system.

A Central Bank Digital Currency (CBDC) is a central bank-regulated blockchain-based payment mechanism. While it functions similarly to a traditional cryptocurrency in that it allows for quick, high-value digital payments, CBDC transactions are traceable and overseen by the government.

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RBI Says That India’s CBDC Will Go Hand in Hand With the Monetary Policies 8

Will India’s CBDC improve the government’s stance on crypto?

“The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of Proof of Concept, pilots and the launch. The design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems.”

RBI highlighted in the report

The news comes after a top RBI official was quoted as saying that the CBDC would be implemented separately for the wholesale and retail sectors.

The country’s finance minister, Nirmala Sitharaman, has stated on multiple occasions that the Digital Rupee will expand payment choices for Indians.

The Indian government is also counting on the CBDC to expand its efforts to bring financial inclusion to people who have yet to access the country’s banking networks. The creation and roll-out of the Digital Rupee are underway, and the Indian government does not want to expedite the process.

RBI Governor T Rabi Sankar remarked in April that the launch of India’s first digital currency would require a sophisticated and calibrated approach because it would have multiple consequences for the economy and monetary policy.

Several other countries, including the United States, Russia, China, Jamaica, Nigeria, and Mexico, are working on their own CBDCs.

India Is Eyeing to Impose GST on Foreign Crypto Exchanges

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India is considering imposing a “reverse charge” on virtual digital asset investments made through foreign platforms.

A reverse charge is a tax owed by the recipient of goods or services rather than the supplier.

The burden of goods and services taxation (GST) will rest on an Indian investor who purchases services from a domestically unregistered crypto exchange.

“If a crypto exchange is situated in India and is not subject to GST, then the receiver will be obligated to pay GST on a reverse charge basis,” a source told Business Today TV.

According to reports, depending on commissions gained through crypto transactions, the percentage of this reverse charge maybe 18 percent.

India might blow up the crypto growth in the country

India is considering expanding the scope of its goods and services tax (GST) to include cryptocurrency. While the judgment is expected this month at the GST council, investors have already been paying 30% tax on cryptocurrency earnings since April 1.

“[The government] is unlikely to tax crypto on the overall value of the transaction, per se,” the source added to Business Today. The conversations are at a point where more thought is required.”

The Reserve Bank of India (RBI) warned the Parliamentary Standing Committee on Finance recently that bitcoin could lead to “dollarization.”

The problem with using foreign currency in any economy, according to Jaijit Bhattacharya, president of the Centre for Digital Economic Policy Research, is that the central bank lacks authority over the currency when using monetary policy tools.

Meanwhile, the RBI’s tough position on cryptocurrency continues to cause investors legal concerns.

Despite such worries, the Confederation of Indian Industry (CII) president Sanjiv Bajaj stated in another interview that the business should be controlled rather than outlawed. The Indian government is actively developing a cryptocurrency policy. However, crypto earnings are already subject to a 30% tax rate. On July 1, a 1% tax deducted at source (TDS) will be imposed on cryptocurrency transactions.

Crypto Might Lead To Dollarization of Indian Economy, Says RBI Officials

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The Reserve Bank of India (RBI) is said to be worried about cryptocurrency acceptance, stating that it will lead to the “dollarization” of the Indian economy.

According to an unidentified source mentioned in a Monday piece in the Indian edition of the Economic Times, the RBI is concerned about cryptocurrencies dominated by the US dollar losing market share from the Indian rupee.

According to the magazine, RBI officials, including Governor Shaktikanta Das, held a briefing to the Parliamentary Standing Committee on Finance this week. They emphasized their pessimism about the possible influence of cryptocurrency on the financial sector. According to an unnamed source:

“Almost all cryptocurrencies are dollar-denominated and issued by foreign private entities, it may eventually lead to dollarization of a part of our economy which will be against the country’s sovereign interest.”

RBI thinks that crypto might undermine the economy

They cautioned that “it will substantially impair the RBI’s ability to establish monetary policy and govern the country’s monetary system.”

The RBI was said to be irritated by the prospect of digital assets being used in cross-border transactions rather than the rupee, and the typical anti-crypto cliches of terror funding, money laundering, and drug trafficking were also highlighted.

The RBI has shown an anti-crypto attitude twice this month, with Coinbase CEO Brian Armstrong stating last week that the RBI forced the exchange to shut down its United Payments Interface (UPI) in India.

Since announcing plans to regulate the business in December, it appears that the Indian government is not fond of digital assets and has adopted a cautious approach to digital assets.

On April 1, the government implemented a 30% tax on digital asset ownership and transfers, as well as a slew of other stringent taxation requirements based on gambling and lottery ticket win legislation.

In the 10 days following the legislation’s introduction, trading volume on major Indian exchanges fell by as much as 70%.

DeFi In The Spotlight: Indian Authorities Mulling 20% TDS

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Indian Tax regulators are reportedly exploring ways to bring income generated from crypto platforms operating outside India under the lens, sources familiar with the matter said.

According to a local news source, India’s Central Board of Direct Taxes [CBDT] is planning to impose a 20% tax deducted at source [TDS], an equalization levy on such transactions and interest income generated by Indians.

The new rules are targeted at those who have not submitted their PAN card details [Permanent Account Number], a unique ten-character alphanumeric identifier, an informed official revealed.

Speaking on the upcoming development, Girish Vanwari, founder of tax advisory Transaction Square noted,

“For the tax department tracking these transactions is very crucial. The government could slap a 5% additional tax in the form of an equalization levy on any transaction where one of the persons is not based in India and has not submitted their PAN card or other tax details. “

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After the stiff tax came into effect, many Indians were on the lookout for alternative platforms to earn income from digital assets. At a time when decentralized finance started gaining a foothold, the proposed move might jeopardize the already tax-burdened crypto industry.

If that wasn’t enough, India’s IT cell now demands customer records should be stored for at least 5 years.

Indian IT body turns its attention to Crypto Exchanges

In a recent development, India’s IT body has directed, virtual asset service providers, virtual asset exchange providers, and custodian wallet providers to maintain all information obtained from the Know Your Customer [KYC] process and financial transactions records for a minimum of five years.

As per the press release, the Computer Emergency Response Team or CERT-In can demand this information for the purposes of “cyber incident response, protective and preventive actions related to cyber incidents.”

The department said this will help “ensure cyber security in the area of payments and financial markets for citizens while protecting their data, fundamental rights, and economic freedom in view of the growth of virtual assets.”

“Any service provider, intermediary, data center, body corporate and
Government organization shall mandatorily report cyber incidents to CERT-In within 6 hours of noticing such incidents or being brought to notice about such incidents,” it added.

The new directions would go into effect from late June, it said.

Indian Banks Approach NPCI to Receive Clarity on Crypto UPI Payments

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Banks in India have contacted the National Payments Corporation of India (NPCI), a government agency under India’s Central Bank Reserve Bank of India that is responsible for operating retail payments and settlement systems in the country.

They contacted NPCI to clarify the relationship between cryptocurrencies and the country’s Unified Payments Interface (UPI) platform.

Local banks recently convened to request that the National Payments Corporation (NPCI) issue a formal guideline prohibiting the use of UPI payment systems for buying and selling digital assets.

The decision comes after Coinbase, a US-based crypto exchange recently opened its crypto trading services in the country and declared that its CEO, Brian Armstrong, would accept UPI payments for crypto transactions.

The ambiguous crypto situation in India

On April 7, Coinbase began offering trading services in India. Following that, it announced that users in the country would be able to purchase cryptocurrencies through the UPI system.

The NPCI fined Coinbase as a result of this, and the authority investigated the company. Shortly after, the National Payments Corporation (NPCI) made an official statement explaining that it is not aware of any cryptocurrency exchange in the nation that uses UPI.

Following the NPCI’s explanation, all major crypto exchanges in the country blocked UPI payments on their sites, including billion-dollar firms CoinSwitch Kuber and CoinDCX.

Major banks have purportedly suspended all online banking alternatives for crypto transactions.

Banks have now requested official guidance from the NPCI on how to proceed with adopting the UPI system for cryptocurrency transactions.

According to sources, the NPCI is unlikely to release any of these orders very soon.

NPCI refused to limit money transfers for cryptocurrency trading in May of last year instead of leaving it up to individual banks to assess their own risk threshold.

Banks in the country were prohibiting various crypto exchange and investment transactions during that time.

The NPCI’s newest statement, released earlier this month, has reignited the tense relationship with cryptocurrency exchanges. Local banks are now hesitant to supply crypto exchanges with deposit channels.

The use of cryptocurrencies by 20 million Indians is being harmed by confusion in the banking system. India’s supreme court overturned the RBI (Reserve Bank of India 2018) decision to prohibit banks from providing services to crypto businesses in March 2020.