FIU issued notices to 25 offshore crypto sites for non compliance

[Bitcoin Smith]

Financial Intelligence Unit (FIU IND) issues notices for non-compliance to 25 offshore Virtual Digital Assets Service providers (VDA SPs) under Section 13 of the Prevention of Money Laundering Act (PML) Act, 2002 The 25 offshore exchanges flagged by FIU-IND include some well-known global names like Huione, Paxful, Changelly, CEX.IO, LBank, BingX, PrimeXBT, BitMex, and Poloniex. They also include emerging platforms like ZooMex, LocalCoinSwap, and CoinCola.



You can find the complete list here: Offshore VDA Service Providers Issued Notices by FIU-IND

And I checked some of the URLs are already tookdown and others like Paxful and BC.game are still working but interesting part is they consider BC.GAME as exchange?

[IIrik11]

i think they're trying to take control of swapping sites like changelly up there because they realized they can't keep track of ppl exchanging coins

and in their tax rule they have mentioned that even interchanging cryptos is taxable but they don't know how to go about doing that

so this is what i think is the result of that,, which is absurd if u ask me, they should have only targeted when crypto/btc is sold for inr

but they want bigger piece of the pie than the one they already have,, i wonder what they're going to do about various non-kyc swap sites

and wallets like metamask, myetherwallet which provide crypto swaps within the wallets itself?

our govt. is focusing so much on the things that shouldn't even matter tbh, like crypto swaps and fantasy cricket

we have so many bigger problems but no, always target the little guy, smh! 

[Bitcoin Smith]

our govt. is focusing so much on the things that shouldn't even matter tbh, like crypto swaps and fantasy cricket

we have so many bigger problems but no, always target the little guy, smh! 

AFAIK, they are not concerned about crypto to crypto swaps, they only make it a pain if the user wants to convert it into INR.

Government is just focusing on banning or with strict regulation and also impose heavy taxes but they don't give any kind of protection to the crypto users for the tax they are collecting which is what the main issue and no one wants to pay their crypto gains taxes.

Ignoring the bigger problems, yes they do that because that cost them money and also that is how they can play their political game for the next election so they may not resolve some issues even if they can because they have political benefits to reap for election after election.

[pawanjain]

we have so many bigger problems but no, always target the little guy, smh! 

They always target the little guy. They have been doing it in the past and they will keep doing it in the future.
But some of the little guys are getting smarter these days and are finding loop holes in their tax systems.
They won't solve bigger problems because it will drain their pockets and won't benefit them.
They only improve the public infrastructure when the elections are near and then after that they reap more than triple they have invested from the middle class people.

[TheUltraElite]

What will be the end result of all this?

Are they trying to get all of these sites under regulatory control or extort them money to run their operations?

They are already taxing BTC/INR and now they want to drag all the traffic to that pair only, by restricting all BTC/Altcoin and BTC/non-INR conversions, so that their tax pockets get full and they can pay out freebies to the voters.

[Bitcoin Smith]

What will be the end result of all this?

Are they trying to get all of these sites under regulatory control or extort them money to run their operations?

Our government is very aware of 30% tax if forcing the people to bypass the taxation in many other ways so they are trying to block every possible door and want to bring the maximum censorship or atleast the surveillance of each and every transactions happening in the country. But we are already moved to cashless economy when they introduced UPI and still government can't track all the tax evaders which is why still 1% of people in India is paying the income tax and government entirely depends on the indirect taxes.

[henmark]

What will be the end result of all this?

Are they trying to get all of these sites under regulatory control or extort them money to run their operations?

Our government is very aware of 30% tax if forcing the people to bypass the taxation in many other ways so they are trying to block every possible door and want to bring the maximum censorship or atleast the surveillance of each and every transactions happening in the country. But we are already moved to cashless economy when they introduced UPI and still government can't track all the tax evaders which is why still 1% of people in India is paying the income tax and government entirely depends on the indirect taxes.

What else can the government expect if they are imposing 30% taxes only on the gains ignoring the loses. People will always look for other ways to hide their money or move their money elsewhere where they don't have to pay any taxes. Even with UPI or digitization there will always be tax frauds as people already have stacks of cash piled up and hidden in their sofas or ceilings .

On a serious note, yes government is paying close attention and is trying to pull as much data as possible to identify tax theft involved with cryptos so it is always better to be safe than sorry. 

[Bitcoin Smith]

On a serious note, yes government is paying close attention and is trying to pull as much data as possible to identify tax theft involved with cryptos so it is always better to be safe than sorry. 

They can issue tax notice for not paying a small amount of taxes in 2020 and that how fast our IT department works when it comes to identify the tax evaders. But yeah the risk is there so better not to evade taxes if someone using FIU register exchanges for trading crypto to INR and there are some other alternatives which can bypass 30% but they comes with own risks and restrictions.

[pawanjain]

What will be the end result of all this?

Are they trying to get all of these sites under regulatory control or extort them money to run their operations?

They are already taxing BTC/INR and now they want to drag all the traffic to that pair only, by restricting all BTC/Altcoin and BTC/non-INR conversions, so that their tax pockets get full and they can pay out freebies to the voters.

Its evident that wherever government has imposed restrictions, there people have started accepting bribes to pass people's applications.
Now that they have regularized operations and restricted these sites, there will be few people who will be accepting bribes to pass through their applications.

Apne India me ghood khilaaye bina koi kaam banta he nahi hai or naa kaam banne dete hai yeh sarkari naukar.

[LucyFurr]

Government realized that there are lot of loose ends within their system so they are trying to shut down every possible door so they can enforce 30% tax on the crypto users even if they don't want to. But people especially in India have their ways when it comes to avoid and evade taxes, the government will never achieve what they desired to be unless they can satisfy the users with fair laws instead of forcing them higher tax rates.

[M47AK16]

Government realized that there are lot of loose ends within their system so they are trying to shut down every possible door so they can enforce 30% tax on the crypto users even if they don't want to. But people especially in India have their ways when it comes to avoid and evade taxes, the government will never achieve what they desired to be unless they can satisfy the users with fair laws instead of forcing them higher tax rates.

I won't say government is imposing 30% tax "even if they don't want to". They are imposing taxes because they can and want to. This is just an extra earning opportunity for them which they won't miss. Historically, people have made immense gains when it comes to cryptos and this has caught attention of the government which made them impose the highest possible taxation slab for cryptocurrencies.

A lot of Indians will be making lakhs in this current bull run and I wonder will all of them really pay 30% tax or is there still some loophole which can be used to avoid taxes? I asked this because 30% feels way lot for me to be honest and I would try finding some ways to avoid paying this big amount of my profits .

[Bitcoin Smith]

A lot of Indians will be making lakhs in this current bull run and I wonder will all of them really pay 30% tax or is there still some loophole which can be used to avoid taxes? I asked this because 30% feels way lot for me to be honest and I would try finding some ways to avoid paying this big amount of my profits .

I would be surprised even if 10% of the people pay their taxes because we know the tax money we are paying isn't going for anything useful, just to pay the salary of government employee who isn't doing what they are supposed to do and for the road or any infrastructure that has been put in subpar quality, and everything that is not up to the standards yet they are demanding tax rates that are even higher the country where people get better for what they are paying as tax.

[TheUltraElite]

I wish there could be a system where people could vote for what has been done and what has not been done in terms of the promises made by their respective governments and the central government. Depending on that score we can gauge how much tax the government can ask from us or not.

If such a system would start then it would become brutal for the government to run the country though.

[TSen]

I would say this is just a starter. Main platter is yet to come where all major crypto firms will start received such notices and will have to undergo tight scrutiny in order to be complaint. This was not a shocking news for me to be really honest as this is something which I expected long back when taxes of 30% were imposed on crypto gains. I knew this will always have it's own side affects.

I personally would never let governments involve in my crypto affairs because they might seem lenient at the start but they are just going to screw us in coming future for making any gains throughout the crypto industry.

[Cointikka]

And I checked some of the URLs are already tookdown and others like Paxful and BC.game are still working but interesting part is they consider BC.GAME as exchange?

Currently, both platforms are operational, but they may remove their services later. BC.GAME features a crypto swap page that allows users to buy cryptocurrency using INR, which could be why it's being considered an exchange. If I recall correctly, all online gambling sites operating in India have been banned. This is also the reason why Dream11 discontinued its sponsorship of the Indian team on their jersey.

[Bitcoin Smith]

And I checked some of the URLs are already tookdown and others like Paxful and BC.game are still working but interesting part is they consider BC.GAME as exchange?

Currently, both platforms are operational, but they may remove their services later. BC.GAME features a crypto swap page that allows users to buy cryptocurrency using INR, which could be why it's being considered an exchange. If I recall correctly, all online gambling sites operating in India have been banned. This is also the reason why Dream11 discontinued its sponsorship of the Indian team on their jersey.

I didn't know about BC offers INR swap but it must be for their premium range customers not small rollers like me. Last time I checked the BC they removed their INR deposit via UPI but still they offer something like giftcard still the issue with deposit and withdrawal of INR remains the same so if anyone use that platform then please use crypto not INR which will end up like stuck in the middle and support might not a clue where the funds went based on the past experience.