China invades India via crypto
According to ED’s press release, WazirX’s main office in Mumbai has two chairs and a desk in a cubicle rented from WeWork, a coworking space. Similarly, Binance’s headquarters is a mailbox in the Cayman Islands. According to ED’s press release, Binance staff can only be reached via an email address that rarely responds to ED queries.
The WazirX investigation indicates how extremely complicated foreign crypto exchange inquiries can be with high chances of futility.
Anarchy is a norm for crypto-exchanges:
The concept of cryptocurrency was born to challenge and dismantle the current financial model controlled by the Central Bank, key to the existence of national sovereignty. The very ambition of cryptocurrency and its current run-ins with the law, across the world, should serve as a wake-up call for India.
KuCoin is under investigation for illegal activities by the South Korean Financial Services Commission (FSC). The Ontario Securities Commission of Canada also imposed sanctions on KuCoin for selling unregistered securities to Canadian citizens.
Binance is another crypto exchange that is being investigated in the United States for money laundering. The company is also involved in a similar investigation by the Law Enforcement Directorate of India.
Roger Ver, an early investor in Binance and Kraken, is an ex-felon convicted of selling explosives on eBay in the United States.
11 cases of GST evasion by cryptocurrency exchanges have been detected by central GST formations. The exchanges involved in the alleged GST evasion were Zanmai Labs (WazirX), Coin DCX, CoinSwitch Kuber, Buy Ucoin, UnoCoin, Flitpay. Zeb IT Services (Zebpay), Secure Bitcoin Traders (Coinsecure), Giottos Technologies, Awlencan Innovations India (Zebpay) and Discidium Internet Labs (Koinex), according to the Ministry of Finance.
The amount of charges and the seriousness of these offenses against crypto exchanges should make any country reluctant to let them operate without any regulation.
Cryptographic Chinese invasion:
It is ironic that although China itself has banned cryptocurrencies and allied crypto firms, Chinese-born companies and founders are running crypto exchanges in India.
Binance’s Changpeng Zhao is a former Chinese national who acquired Canadian citizenship. Binance originated in China and is now based in the tax haven of the Cayman Islands.
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