Will CEXs be able to function properly if they get an Indian License?

[DegenLite]

We all know the battles and struggle to use a CEX in our daily trading because of the government limitations on cryptocurrency, we've seen big CEXs like Binance exiting the country and leaving us with fewer and fewer options when it comes to major CEXs to trade with. We all use murky was too access our CEXs lol, well two days I saw an article on cointelegraph that claimed an exchange is actively in talks to get a license from the government to properly operate in the country. I assume this license will come with some sort of weird attachment like maybe additional tax on on transactions or heavy limitations

Fair enough that an exchange wants to get a licence to operate properly but I'm not so optimistic cause there will almost definitely be added on conditions we might not like, What's you guys thought on this?

Source: https://cointelegraph.com/news/bitget-fiu-licensing-india

[pakhitheboss]

FIU is mandatory for any international exchange to properly operate in India. Previously 7 exchanges were shadow banned because they were operating in India without FIU. One of the important requirement of FIU is that every exchange needs to have an office in India and a contact person. Apart from following other various obligation by the government of India. It has nothing to do with tax or TDS for now. Maybe sometime later they will start deducting TDS on thier platforms. I have not seen or heard BInance deducting TDS at point of sale for now.

[Bitcoin Smith]

Fair enough that an exchange wants to get a licence to operate properly but I'm not so optimistic cause there will almost definitely be added on conditions we might not like, What's you guys thought on this?

Exchanges may not be facing any difficulties apart from their privacy invasion but we the users are going to be screwed by the FIU because all they do is just to track the tax evaders so over the time people will have no choice other than paying what government wants from us.

In case if you are not aware of it, I already shared this link in the press & News section.

[Phoenixtrader]

FIU is mandatory for any international exchange to properly operate in India. Previously 7 exchanges were shadow banned because they were operating in India without FIU. One of the important requirement of FIU is that every exchange needs to have an office in India and a contact person. Apart from following other various obligation by the government of India. It has nothing to do with tax or TDS for now. Maybe sometime later they will start deducting TDS on thier platforms. I have not seen or heard BInance deducting TDS at point of sale for now.

I think according to the article that's what Bitget is trying to obtain. It's good that these platforms take compliance seriously & are been transparent about it ahah . What's TDS.?

[Parvati_j]

I feel so sad anything I hear things like this, it makes me want to ask if we are the only ones passing through this torment from the government in regards to cryptocurrency. If only they can see the opportunities that cryptocurrency can bring to our economy, they wouldn't keep on making decisions as though they are completely against it. Though scammers on the other hand are a big reasons why most persons deem crypto to be a scam and all that is within it. Trying to impose all these taxes and limitation/restriction would only serve as a public example to chase other developments that has to do with cryptocurrency. Anyway I hope bitget makes all the possible settlement and agreement so they can start functioning fully.

[pakhitheboss]

Fair enough that an exchange wants to get a licence to operate properly but I'm not so optimistic cause there will almost definitely be added on conditions we might not like, What's you guys thought on this?

Exchanges may not be facing any difficulties apart from their privacy invasion but we the users are going to be screwed by the FIU because all they do is just to track the tax evaders so over the time people will have no choice other than paying what government wants from us.

In case if you are not aware of it, I already shared this link in the press & News section.

That is what is meant to be FIU compliant as this is only a shadow license for AML. The real reason was always to track the users using those international exchanges. The government will come up with such a strict policy unless they get details of everyone who is using the international exchange to avoid taxes. I mean this is just the beginning and we will encounter more such policies by the present government in the coming 5 years time. I hope after their humiliation in the current election result where they were not able to gain a full majority they should come to some senses.

It is not always about religion or the underprivileged, it is all about the middle class and the policies that they have taken to suppress us. The election result is a warning to the ruling party and those who are currently holding positions as ministers in the current government.

[avikz]

We all know the battles and struggle to use a CEX in our daily trading because of the government limitations on cryptocurrency, we've seen big CEXs like Binance exiting the country and leaving us with fewer and fewer options when it comes to major CEXs to trade with. We all use murky was too access our CEXs lol, well two days I saw an article on cointelegraph that claimed an exchange is actively in talks to get a license from the government to properly operate in the country. I assume this license will come with some sort of weird attachment like maybe additional tax on on transactions or heavy limitations

Fair enough that an exchange wants to get a licence to operate properly but I'm not so optimistic cause there will almost definitely be added on conditions we might not like, What's you guys thought on this?

Source: https://cointelegraph.com/news/bitget-fiu-licensing-india

Pakhitheboss has given the correct answer here. All crypto exchanges are required to be registered with Financial Intelligence Unit of India. However, as India doesn't recognise cryptocurrency as a legal tender, any de government can come up with rules to close down all exchanges related to cryptocurrency. So a risk will always be there!

You need to ensure that you do not keep your cryptos in the wallet of any centralised exchanges. Because you never know when the rule is going to be changed. Also a lot of time Indian banks main freeze your account if they find any crypto related transactions.

Also when you are dealing with an Indian crypto exchange, please ensure that you keep all data with you so that you can report it to your income tax filing. If you fail to disclose the transactions, you might have to face additional hassles.