Indian Finance Minister Nirmala Sitharaman has stated that it is the position of the Indian government that crypto assets cannot be currencies, which are issued by central banks. She clarified that crypto assets can be used for trading, speculation, profit-making, and various other purposes. Moreover, she noted that India has raised the issue of crypto […]
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Indian National Pleads Guilty in Case Involving ‘Largest Single Cryptocurrency and Cash Seizure in DEA History’
An Indian national has pleaded guilty in a case involving “the largest single cryptocurrency and cash seizure” in the U.S. Drug Enforcement Administration (DEA) history. The defendant “is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world,” the U.S. Department of Justice (DOJ) described.
This Case Involves Largest Single Cryptocurrency and Cash Seizure in DEA History, Says DOJ
The U.S. Department of Justice (DOJ) announced Friday that a 40-year-old Indian national, Banmeet Singh, has pleaded guilty to “running a dark web narcotics conspiracy.” Specifically, he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. The announcement details:
According to the DEA, this case involves the largest single cryptocurrency and cash seizure in DEA history; the defendant has forfeited cryptocurrency accounts that ultimately became worth 0 million.
According to court documents, Singh created vendor marketing sites on dark web marketplaces to sell controlled substances. Customers paid with cryptocurrency, and Singh personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services.
The DOJ explained that from at least mid-2012 through July 2017, Singh controlled at least eight distribution cells in various U.S. states. “Individuals in those distribution cells received drug shipments from overseas and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland and the U.S. Virgin Islands,” the Justice Department noted.
Singh was arrested in London in April 2019 and the government secured his extradition to the U.S. last year. DEA Special Agent in Charge Orville O. Greene commented:
Banmeet Singh is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world.
What do you think about this case? Let us know in the comments section below.
Indian Government Provides Update on Crypto Regulation
The Indian government has responded to questions during a parliamentary session regarding crypto regulation in India. The government emphasized the valuable guidance provided by the IMF-FSB synthesis paper presented at the G20 summit, noting that this paper offers a framework for both G20 and non-G20 nations to develop “clearer policies on crypto assets.”
Government Provides Indian Crypto Framework Progress Update
The Indian government provided some answers on Monday regarding cryptocurrency regulation in India. The Indian government has been grappling with the question of crypto regulation since July 2019, when a draft bill was introduced.
Parliament Member Rajeev Shukla asked the Minister of Finance in Rajya Sabha, the upper house of India’s parliament, whether the government “intends to take further measures to provide for effective regulation of crypto assets in the country in sync with the New Delhi Leaders’ Declaration adopted by the G20 countries.”
Minister of State in the Ministry of Finance Pankaj Chaudhary answered the question on Tuesday. He explained: “On the crypto asset agenda, the New Delhi Leaders’ Declaration welcomed the International Monetary Fund (IMF) – Financial Stability Board (FSB) synthesis paper, including a roadmap that supports a coordinated and comprehensive policy and regulatory framework on crypto assets, taking into account the full range of risks and risks specific to the emerging market and developing economies (EMDEs).” He added:
The IMF-FSB synthesis paper was presented during the Leaders’ Summit and provides valuable guidance to not just the G20 but also the non-G20 jurisdictions in moving forward with clearer policies on crypto assets.
“The IMF-FSB synthesis paper also emphasizes that EMDEs face higher risks from crypto assets,” the minister stressed. “The IMF-FSB synthesis paper gives more flexibility to the EMDEs who may take additional targeted measures depending on their country-specific characteristics.” Examples of these characteristics include the size of the economy and financial system, regulatory priorities, institutional quality and capacity, as well as the level of financial integration into the global economy.
Minister Chaudhary concluded:
Accordingly, all jurisdictions, including India, are expected to evaluate the country specific characteristics and risks in order to reach an appropriate consideration of any necessary measures on crypto assets.
Last week, the Indian government also answered questions regarding the government’s support of Web3 startups and the number of crypto service providers that are registered with the country’s Financial Intelligence Unit.
When do you think the Indian government will finally introduce a regulatory framework for crypto? Let us know in the comments section below.
Indian Government Confirms Commitment to Supporting Web3 Startups
The Indian government has confirmed its commitment to supporting startups that are innovating in the Web3 sector in India. “Web3 represents the future of internet and the government is committed to ensuring that the innovators and innovation from India create the future of Web3 and internet,” said the country’s Minister of State for Electronics and Information Technology.
Indian Government’s Web3 Stance
The Indian government answered some questions about Web3 in Lok Sabha, the lower house of India’s parliament, on Wednesday.
The Minister of Electronics and Information Technology was asked by a parliament member “whether the government supports startups that are innovating in the Web3 sector in the form of any incubation or mentorship.” Noting that blockchain is “an important element of Web3,” Minister of State for Electronics and Information Technology Rajeev Chandrasekhar replied:
Yes … Web3 represents the future of internet and the government is committed to ensuring that the innovators and innovation from India create the future of Web3 and internet.
Minister Chandrasekhar proceeded to outline various initiatives undertaken by the Ministry of Electronics and Information Technology (Meity) to support Web3 startups.
He explained that in March 2020, a Centre of Excellence (CoE) focused on blockchain technology was established through a collaborative effort involving Meity, Software Technology Parks of India (STPI), the government of Haryana, Padup Venture Private Ltd., IBM, Intel, the Global Blockchain Association (GBA), and the Foundation for Innovation and Technology Transfer (FITT).
“The CoE is a domain-specific specialized incubation facility for start-ups in the area of emerging technologies where infrastructure, technology, leadership, mentoring, training and networking are made available,” Chandrasekhar detailed. “This is an initiative to identify and evaluate promising start-ups in the field of blockchain technology.”
Moreover, he added that Meity supports startups that are innovating in emerging technologies in the form of incubation or mentorship through the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme; the Product Innovation, Development and Growth (SAMRIDH) startup accelerator program; the Next Generation Incubation Scheme (NGIS); and the Support for International Patent Protection in E&IT (SIP-EIT) Scheme.
What do you think about the Indian government supporting startups innovating in the Web3 sector in India? Let us know in the comments section below.
Indian Government Reveals 28 Crypto Service Providers Are Registered With Financial Intelligence Unit
The Indian government has revealed that 28 crypto service providers are currently registered with the country’s Financial Intelligence Unit. Furthermore, the Ministry of Finance has clarified that the anti-money laundering guidelines and reporting requirements apply to offshore cryptocurrency exchanges servicing the Indian market.
28 Crypto Firms Are Registered Entities
India’s Ministry of Finance answered some crypto-related questions in Lok Sabha, the lower house of India’s parliament, on Monday.
The finance minister was asked by a parliament member to provide “the details of all the registered entities as per the AML and CFT [Anti-Money Laundering and Countering the Financing of Terrorism] Guidelines for Reporting Entities providing services related to virtual digital assets.”
Pankaj Chaudhary, Minister of State in the Ministry of Finance, provided parliament with a list of 28 Virtual Digital Assets Service Providers (VDA SPs) registered with India’s Financial Intelligence Unit (FIU). They include Coindcx, Unocoin, Giottus, Bitbns, Zebpay, Wazirx, Coinswitch, Mudrex, Buyucoin, Pyor, Valr, and Bytex.
The Indian Ministry of Finance said in March that entities dealing in virtual digital assets, including crypto exchanges and intermediaries, are considered ”reporting entities” under the Prevention of Money Laundering Act (PMLA).
The minister of state was also asked in Lok Sabha whether the aforementioned “guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market.” He replied:
Yes, the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market. The process of registration for the said VDA SPs has been initiated. Appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms.
What do you think about the information provided by Indian Minister of State Pankaj Chaudhary regarding registered crypto trading platforms and offshore exchanges? Let us know in the comments section below.
FBI Busts Indian Citizen Group For $15 Million Crypto-To-Cash Money Laundering Scheme
In a recent crypto investigation, the US FBI successfully infiltrated a group of Indian citizens suspected of engaging in illicit activities involving the exchange of cryptocurrency for over million in cash.
The alleged transactions took place at various locations in Westchester County, with the group catering to customers seeking anonymity for their activities.
Crypto Crime Unveiled
According to recent reports, five out of the six suspects were apprehended on October 17 and subsequently charged in US District Court, White Plains.
The charges primarily revolve around operating an unlicensed money-transmitting business. The investigation unfolded with the assistance of law enforcement agents who monitored 80 “cash hand-offs”.
The FBI’s scrutiny began in April 2021 when they identified a suspect operating within the “dark web” criminal marketplaces.
Although the individual remains unnamed in the criminal complaint, they are believed to be a co-conspirator of the arrested local suspects. Notably, the suspect offered to ship cash to customers in exchange for cryptocurrency.
According to the complaint, the unidentified co-conspirator disclosed to an undercover officer in January that some of their customers were involved in drug sales, while their wealthier clients were hackers.
The co-conspirator claimed to have amassed approximately million over three years by exchanging cash for cryptocurrency.
In February, an individual responsible for mailing packages of cash on behalf of the co-conspirator was arrested. The complaint reveals that this individual had been receiving sacks of cash from various individuals, three times a week for 18 months, at a Westchester County post office. The cash bundles ranged from 0,000 to 0,000.
In a bid to receive leniency during sentencing, the aforementioned individual agreed to assist the FBI with their investigation. Over several months (from February 10 to September 27), they allegedly participated in 80 controlled cash pick-ups amounting to ,067,000.
One of the arrested individuals, Raju “Jay” Patel from Flushing Queens, played a significant role in the operation. The complaint alleges his involvement in 58 cash transfers totaling .8 million.
Raju would collect cash from various locations in George, Massachusetts, North Carolina, Pennsylvania, and South Carolina. Subsequently, Raju allegedly coordinated the transfers with the co-conspirator and the FBI’s confidential source.
On March 6, Raju allegedly arranged an exchange of 0,000 at a Tarrytown supermarket parking lot. Surveillance conducted by law enforcement agents captured Raju leaving his Queens apartment with an orange cloth bag, which he handed over to the FBI’s confidential source upon arrival in Tarrytown. The bag reportedly contained 9,715.
Illicit Cash Exchange
Similar exchanges took place at a parking lot in Port Chester, further implicating the suspects involved. On August 6, Shaileshkumar Goyani allegedly handed over a bag containing 4,000 to the FBI’s confidential source.
Apart from Goyani, the complaint identifies Brijeshkumar “Samir” Patel, Hirenkkumar Patel, Naineshkumar Patel, and Nileshkumar Patel as additional suspects in the case.
All the suspects are charged with operating an unlicensed money-transmitting business under New York and federal laws.
According to an affidavit by FBI agent Lawrence Lonergan, such unlicensed money-transmitting businesses operate as shadow banks, enabling funds to pass through without undergoing the scrutiny imposed by Congress on the United States financial system.
While the allegations against Goyani’s crypto fraud remain unproven, his defense attorney, Daniel A. Hochheiser, emphasizes that his client has not been indicted by a grand jury. Hochheiser further stated that if and when an indictment is issued, Goyani intends to enter a plea of not guilty.
Featured image from Shutterstock, chart from TradingView.com
G20 Nations Actively Discussing Crypto Framework, Says Indian Finance Minister
The G20 countries are actively discussing a global framework for crypto assets under India’s presidency, Finance Minister Nirmala Sitharaman has revealed. “India’s presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets,” she emphasized.
India Says ‘Active Discussions’ on Crypto Are Happening
Indian Finance Minister Nirmala Sitharaman provided an update on the discussions regarding global cryptocurrency regulations under India’s G20 presidency on Tuesday at this year’s Global Fintech Fest in Mumbai.
Regarding crypto discussions at the G20, the Indian finance minister emphasized: “India’s presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets.” She affirmed:
Active discussions are happening.
Sitharaman proceeded to reference various in-depth papers relating to the regulation of crypto assets that have been presented at G20 meetings from global organizations such as the International Monetary Fund (IMF), the Financial Stability Board (FSB), and the Organisation for Economic Co-operation and Development (OECD). She specifically mentioned that the IMF and the FSB have submitted their synthesis paper on crypto assets.
She also noted that crypto is both “a threat as well as an opportunity,” emphasizing: “As much as you build firewalls, there are more and more newer ways in which attacks are being made.”
India has been deliberating on the regulation of crypto assets for several years. In 2019, a draft crypto bill was submitted to the Ministry of Finance but it was never taken up in parliament. Subsequently, the Indian government indicated that more work is needed on the bill and underscored the need for global coordination in overseeing the cryptocurrency sector.
India’s Prime Minister Narendra Modi said last month that crypto needs “a global framework and regulations.” He stressed: “The rapid pace of change of technology is a reality — there is no point in ignoring it or wishing it away. Instead, the focus should be on adoption, democratization, and a unified approach.”
Last month, India also put forward proposals for a roadmap to introducing a global regulatory framework for crypto assets. Sitharaman previously said that India seeks a common framework for crypto for all countries.
What do you think about Indian Finance Minister Nirmala Sitharaman stating that active discussions are taking place within the G20 regarding crypto? Let us know in the comments section below.
Indian Official: De-Dollarization Remains Distant, Rupee Should Become Dominant Currency
India’s oil and gas minister says de-dollarization is a long way away. The official emphasized his desire to conduct all transactions in rupees, expressing his wish for the Indian currency to become “the lead currency in the world.”
Indian Official on De-Dollarization
India’s Minister of Petroleum and Natural Gas Hardeep Singh Puri stated in an interview with CNBC on the sidelines of the B20 Summit in New Delhi on Friday that de-dollarization is a long way off.
Puri explained that he expects the U.S. dollar to maintain its dominance in global trade. Commenting on factors that could dethrone the USD as the world’s reserve currency, he opined:
I don’t know what kind of change [the dollar needs to] be affected but I don’t see it … It’s not so easy.
The minister further shared that he does not see the Indian rupee challenging the U.S. dollar as a major global currency, even though it is being used in some oil transactions alongside the Chinese yuan and the Russian ruble. Nonetheless, he stressed:
I would like to be able to transact everything in rupees … I wish the Indian rupee should be the lead currency in the world. But I’m also a realist.
A growing number of countries are moving away from settlements in U.S. dollars. The BRICS nations (Brazil, Russia, India, China, and South Africa), for example, are encouraging the use of local currencies in international trade and financial transactions.
While acknowledging a growing de-dollarization trend, the Indian minister questioned: “The main point is that … there are arrangements, but the transactions which are taking place, how many percent is coming in rupees?” He noted: “We heard about decoupling. But these international arrangements, trading arrangements, payment arrangements, these have been in place for a long time.”
Do you agree with the Indian official about de-dollarization? Let us know in the comments section below.
BRICS Bank to Issue First Indian Rupee Bond — Plans to Boost Local Currency Lending
The New Development Bank (NDB), also known as the BRICS Bank, is reportedly planning to issue its first Indian rupee bond by October. Last week, the bank issued its first South African rand bond. “NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans,” said the BRICS Bank’s chief financial officer.
BRICS Bank to Issue INR Bond
The New Development Bank (NDB), commonly referred to as the BRICS Bank, is planning to issue its first Indian rupee bond by October, Reuters reported, citing Vladimir Kazbekov, vice president and chief operating officer of the BRICS Bank.
The NDB is a multilateral development bank established by the BRICS nations (Brazil, Russia, India, China, and South Africa) with the purpose of mobilizing resources for infrastructure and sustainable development projects in emerging markets and developing countries. In 2021, the BRICS Bank initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates, and Uruguay as its new member countries.
Kazbekov stated during a press briefing on Monday:
We’re going to tap Indian market — rupees — maybe by October in India.
“Now we start thinking seriously … to use one member country’s currency to finance projects with that currency in another member. Let’s say, a project in South Africa to be financed in CNY (Chinese yuan), not with USD (U.S. dollar),” he added.
The Shanghai-based lender aims to increase local currency lending, most of which has so far been in the Chinese yuan, from about 22% to 30% by 2026. Dilma Rousseff, the former Brazilian leader who heads the New Development Bank, recently told the Financial Times that the bank expects to lend between billion to billion this year. “Our aim is to reach about 30% of everything we lend . . . in local currency,” she emphasized.
On Aug. 15, the New Development Bank announced the successful issuance of its first ZAR bond in the South African bond market. Leslie Maasdorp, the BRICS Bank’s chief financial officer, explained at the time that “the proceeds will be used to fund infrastructure and sustainable development projects in South Africa.” He noted:
NDB is seeking to increase its presence in the local capital markets of its member countries, to fund its robust portfolio of local currency loans.
What do you think about the BRICS Bank issuing Indian rupee bonds and seeking to increase local currency lending? Let us know in the comments section below.
BRICS Not Focusing on Creating Common Currency, Indian Official Says
A top Indian official has downplayed the creation of a shared BRICS currency. Emphasizing that “common currency discussions have several prerequisites before you can even talk about a common currency framework,” the official stressed that the BRICS nations have focused on boosting settlements in national currencies.
Indian Foreign Secretary on BRICS Currency
India’s Foreign Secretary Vinay Mohan Kwatra explained in a media briefing on Monday that the BRICS economic bloc is not focusing on the proposed common currency for member states, Indian news outlet Mint reported. The BRICS nations are Brazil, Russia, India, China, and South Africa.
“The substantive part of trade and economic exchanges and discussions that have been a part of BRICS discussions have so far, in a major way, focused on how to increase trade in respective national currencies which … is considerably different from a common currency concept,” the official detailed, elaborating:
You would know that common currency discussions have several prerequisites before you can even talk about a common currency framework. The discussion framework in BRICS and the substance of that discussion framework in BRICS have focused principally on trade within national currencies.
Recently, India’s Minister of External Affairs S. Jaishankar similarly stated that there is no discussion of a common currency for the BRICS nations.
The economic bloc’s summit is scheduled to take place on Aug. 22-24 in Johannesburg. South Africa is the host of this year’s BRICS summit. While many people expect the BRICS leaders to discuss the creation of a shared currency, the top South African diplomat in charge of BRICS relations has affirmed that the topic of a common currency is not on the agenda to be discussed at the summit.
Some people firmly believe that the proposed common BRICS currency will dethrone the U.S. dollar and become the world’s dominant currency, including Rich Dad Poor Dad author Robert Kiyosaki. However, some are cautious, including British economist Lord Jim O’Neill, who was credited with coining the acronym BRIC. He called the proposed common currency idea “ridiculous” and “embarrassing.”
What do you think about the statements by Indian Foreign Secretary Vinay Mohan Kwatra regarding the proposed common currency for the BRICS nations? Let us know in the comments section below.