India is creating a Global database of Crypto Exchanges.

[Bureau]

I recently came across this news on Economic times. All global CEX have been or are being requested to share their user database to the government of India. Every major CEX has made it mandatory for its users to pass KYC, it will be easy for them to collate the data and share it with India. India took this responsibility as it had the Presidency of the G20 summit 2023.

The problem that India will face is that these exchanges are based in countries that are tax heaven, those exchanges cannot be forced to share the data. India has time till March 2024 to come up with the database before the next G20 summit in 2024. Once the database is created it will be shared with the G21 group to fight against crime commited using cryptocurrency.

What do you think will be the impact of this database to the Indian community that are using International centralized exchanges?

Thanks.

[1714644431]

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[1714644431]

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[elevates]

The idea is to help every country to counter illegal activities that are being conducted using crypto. Whereas for the Indian community who might have evaded tax, the objective would be to find them. I do agree this database would help countries to counter money laundering and stop terrorist funding.

[TheUltraElite]

India cant even stop their TB pandemic and has to postpone the End TB program, cryptocurrency is way beyond their concerns and putting a deadline like that seems to be a joke. Obviously it will get flunked and delayed and what not.

Let the biggest countries out there make their moves first, India is still traveling backwards in civilization with increasing taxation on crypto and more restrictions from their brain-dead policy makers.

It is a good concept and tax evaders do need to be punished. However in my opinion, this will take time and such a thing before G21 is not happening easily.

[pawanjain]

I recently came across this news on Economic times. All global CEX have been or are being requested to share their user database to the government of India. Every major CEX has made it mandatory for its users to pass KYC, it will be easy for them to collate the data and share it with India. India took this responsibility as it had the Presidency of the G20 summit 2023.

The problem that India will face is that these exchanges are based in countries that are tax heaven, those exchanges cannot be forced to share the data. India has time till March 2024 to come up with the database before the next G20 summit in 2024. Once the database is created it will be shared with the G21 group to fight against crime commited using cryptocurrency.

What do you think will be the impact of this database to the Indian community that are using International centralized exchanges?

Thanks.

So they are planning to invest 200 cr in their development center and improve their infrastructure but they haven't mentioned anything about their development plans.
If there are plans of making development to their exchange or something new in the crypto sphere then it would be great.
Even if they are not making developments in the crypto sphere and making the development elsewhere then I take it as a positive sign because it will contribute to India's growth and boost economy.

[pakhitheboss]

Something like this was in the making, I am not sure how the Indian government would convince CEXs like Binance and others to hand over their user database. I do not think the Indian community would be facing any issues. They are already using multiple non-KYC DEX for P2P transactions after the Binance P2P issue. Creating a user database from the CEX won't help the governments in countering illegal activities. Criminals won't be using them, most of them would be using non-KYC exchanges like a DEX.   

[Bitcoin Smith]

If I am not wrong, they won't even pay attention about this for the next one-year cause of the Parliament election which will happen in 2024 so the government will most likely concentrate on keeping their vote bank alive as much as possible.

But about the topic, exchanges will share the user database to government with no hesitation at all cause every exchange is already having mandatory KYC and Binance also charges 1%TDS if I am not wrong so why they have to say no because every company see India as a money growing field so they will do whatever to get support from their government which will be used later to harvest their benefits in one or other way.

[teosanru]

I recently came across this news on Economic times. All global CEX have been or are being requested to share their user database to the government of India. Every major CEX has made it mandatory for its users to pass KYC, it will be easy for them to collate the data and share it with India. India took this responsibility as it had the Presidency of the G20 summit 2023.

The problem that India will face is that these exchanges are based in countries that are tax heaven, those exchanges cannot be forced to share the data. India has time till March 2024 to come up with the database before the next G20 summit in 2024. Once the database is created it will be shared with the G21 group to fight against crime commited using cryptocurrency.

What do you think will be the impact of this database to the Indian community that are using International centralized exchanges?

Thanks.

Internationally things don't work this easily. It's more like a quid pro quo system that works when it comes to international data sharing. So if they want to gather data from international exchanges they obviously need to offer their data to these countries government as well. You cannot enforce this on them, also the threats of banning them might not also work because India isn't a very big market for them anyway.

Secondly, I am very sure this isn't to solve the crime committed using cryptos. NO ONE commits a crime using crypto and sweeps the money to a CEX. This is more to find about tax evasions and ensure tax compliance of 30% tax which the government has kept.

But as you said getting it from Tax haven exchanges would be like an impossible task for sure.

[pakhitheboss]

Internationally things don't work this easily. It's more like a quid pro quo system that works when it comes to international data sharing. So if they want to gather data from international exchanges they obviously need to offer their data to these countries government as well. You cannot enforce this on them, also the threats of banning them might not also work because India isn't a very big market for them anyway.

Secondly, I am very sure this isn't to solve the crime committed using cryptos. NO ONE commits a crime using crypto and sweeps the money to a CEX. This is more to find about tax evasions and ensure tax compliance of 30% tax which the government has kept.

But as you said getting it from Tax haven exchanges would be like an impossible task for sure.

Knowing the current government and its foreign policy it is possible that data-sharing between the governments would be the primary way to get user data on CEX. Getting Indian user's data would be the primary motive as it does not make sense to ask CEX for user data. If someone wants to commit a crime they will always use a DEX to sweep their money. It is far more convenient for a criminal as they can hide their identity.     

[TheUltraElite]

Knowing the current government and its foreign policy it is possible that data-sharing between the governments would be the primary way to get user data on CEX. Getting Indian user's data would be the primary motive as it does not make sense to ask CEX for user data. If someone wants to commit a crime they will always use a DEX to sweep their money. It is far more convenient for a criminal as they can hide their identity.     

Monitoring the data from a DEX is also possible but this is India we are talking about and a lot of digital improvement is needed before such things can be shown daylight. We are in an era where the government is trying to make things digital while ignoring the amount of cybercrime happening. The foundation of a good digital infrastructure is the cybersecurity and cyber-awareness from the people.

Long way to go in my opinion, although what delights me is that at least India is taking part in crypto related talks, back when I first came to this forum, it was much less.

[avikz]

I recently came across this news on Economic times. All global CEX have been or are being requested to share their user database to the government of India. Every major CEX has made it mandatory for its users to pass KYC, it will be easy for them to collate the data and share it with India. India took this responsibility as it had the Presidency of the G20 summit 2023.

The problem that India will face is that these exchanges are based in countries that are tax heaven, those exchanges cannot be forced to share the data. India has time till March 2024 to come up with the database before the next G20 summit in 2024. Once the database is created it will be shared with the G21 group to fight against crime commited using cryptocurrency.

What do you think will be the impact of this database to the Indian community that are using International centralized exchanges?

Thanks.

It's difficult but not impossible! But if it happens, all crypto exchanges will loose their credibility and might have to breach their own privacy policy. Also many countries have their data protection act which might get breached. So it's difficult but not entirely impossible.

This is very risky for those people who have been under reporting their crypto income in their tax return. That's why I always mention not to stand on the different side of the law. It's better to pay 30% tax than to get into regulatory hassles.