My suspicions are the same as yours. As far as I can see, the OP is not concerned about his anonymity on the CEX exchange, but he wants to hide the trail leading back to his original wallet. We can only speculate as to why he wants to do this.

While this is true, there are still those who do not yet require KYC with a daily withdrawal limit. Taking this into account, it is possible to send BTC anonymously to CEX if we make them anonymous in some way before that, and then sell/exchange them there for another coin. However, the whole thing would not make sense if, after all, we sold that BTC and withdrew the fiat to our bank account.

Of course, there are opportunities to hide identities even when it comes to banks, but this is something that still requires additional investment in the form of anonymous bank cards. I'm not talking about something illegal in the literal sense of the word, perhaps rather morally questionable - I think you know exactly what I mean

It wouldn't go down to zero but will definitely reduce. The startups created around crypto ecosystem will also reduce. It will also accelerate the great India brain drain regime that we are currently experiencing. Also it will encourage people to take illegal routes to cash out their cryptos.

I believe that's what the government wants especcially when RBI governor is very much pushing towards a blanket ban.

But who cares when incompetent people chairing the highest positions within finance ministry.

+1
Pay taxes for what?? no roads.. shitass electric supply.. open garbages..
Our money is only gettin locked away in swiss accounts by these fuckin bureaucrats..