Indian Finance Minister Nirmala Sitharaman says that the biggest risk of cryptocurrencies is their usage in money laundering and terror financing.
Money Laundering and Terror Financing
Nirmala Sitharaman, the Finance Minister of India says, “The biggest global risk that faces countries across the board is money laundering and its usage in terror financing. While speaking at a seminar at the International Monetary Fund, Sitharaman said, “The crypto market needs regulations which are possible only if all countries come together”. The finance minister says that regulations by utilizing technology will mitigate the risk.
According to a report presented by Chainanalysis 2022, more than $8.6 billion in money laundering took place in 2021. Cybercriminals are using crypto assets for this purpose. Money laundering through Bitcoin was at 19% and other altcoins at 68%.
Tax on cryptocurrencies is at 30% in India. It will help to identify users who are using crypto as payment.
The Reserve Bank of India has raised concerns over the financial instability caused by crypto assets. India introduced a 30% tax on digital crypto. It will discourage new investors and prevent fraud. The Reserve Bank of India voices its reservations over digital crypto assets.
India and Crypto Currencies
India has plans to launch a digital Rupee. China and India are the fastest-growing countries that lead other countries in crypto trading. Usage of cryptocurrencies increased during the Covid-19 pandemic. The crypto market requires digital infrastructure to regulate crypto adoption. It will prevent fraudsters and hackers from wiping away investor money.
In 2018, India banned crypto transactions. But in March 2020, the Supreme Court removed the restriction.
The Indian crypto exchanges WazirX and CoinSwitch Kuber disabled rupee deposits for purchasing digital assets.
India has been against virtual digits. But with the huge adoption of cryptocurrencies, there is a rising need to address the situation. Of late, India shows more tolerance toward cryptocurrency transactions. Sitharaman said that India’s CBDC program might begin in the current year.
ASCI Frames Crypto Guidelines
The Advertising Stands Council of India (ASCI) released crypto guidelines applicable from April 1, 2022.
Cryptocurrencies have come a long way as an investment opportunity. Large companies like PayPal and Visa accept crypto payments. Non-fungible tokens are widely accepted.
However, the crypto sector does not have proper regulatory control. It runs on a decentralized technology that worries lawmakers.
The Advertising Standards Council of India stipulates that all ads and promotions related to crypto and non-fungible tokens must have prominently displayed disclaimers. Virtual digital assets or VDAs must have well-displayed disclaimers on advertisements and promotions.
The ASCI issued the guidelines as users may be fraudulently misled by improper risk disclosures. Currently, the disclosures are not prominently displayed on crypto assets and non-fungible tokens.
Advertisements have to follow new guidelines from April 15, 2022.
- The ASCI stipulates that all advertisements for virtual digital assets products (VDA) and VDA exchanges must proclaim the disclaimer that crypto products are unregulated and carry high risk.
- Advertisements should not use words like “securities”, “currency”, “depositories’, and “custodian” in their content. It may mislead users into considering them as regulated products.
- The profitability of virtual digital asset products should contain updated, clear and accurate information.
- The risks associated with the crypto sector advertisements are not adequately disclosed, says the ASCI.
- The youth should not be misled by non-transparent and over-promising advertising”, claims Indian Prime Minister Narendra Modi in a meeting held in November.
Top Cryptocurrency Prices
The Crypto market cap is at $1.94 trillion, an increase of 1.80%. Bitcoin crypto (BTC) continues to lead other cryptos with a 42% share in market cap and Ethereum with an 18% share, according to data released by CoinMarketCap.
Global crypto market volume is at $97billion on April 21, 2022, an increase of 13.5%
Bitcoin prices took support at $40,000 and are trading at the $42,200 level.
Some of the best altcoins to invest in in 2022 are Cardano (ADA), XRP, and Shiba INU (SHIB). The ApeCoin trades with high volatility as it is NFT money. APE prices are at $15, more than 5.8% lower in 24 hours.
Litecoin (LTC) rose 1.2% to trade at $112.9 during trading hours on Thursday, April 21, 2022. Ethereum trades at $3,098, showing an increase of 1.08%. Doge coins (DOGE), the top meme coin, are down 1%.
Russian-Ukraine War Hits Crypto Trading
The Russian invasion of Ukraine and rising inflation has brought down crypto trading volume. There is high volatility in crypto prices.
Leading crypto coins see a significant drop in prices. The top 10 cryptocurrencies face a sharp dip in value, with the Russian war continuing for more than 50 days. Inflation is soaring high as crude prices rose sharply to $113 per barrel.
Most users decided to exchange crypto investments into fiat currencies to prevent volatile fluctuations.