The cryptocurrency exchange received more than 1023 requests from law enforcement agencies during the period October-March 2022.
Explosive data requests for reports
The Indian-based cryptocurrency exchange disclosed that it had received more than 1,023 data requests related to criminal activity in its Transparency Report from October 2021 to March 2022. The total number has more than tripled from the previous April-October 2021 period as requests from Indian and foreign law enforcement agencies flooded in. The company also reported that 952 of these requests came from Indian agencies and 71 from foreign agencies. This number more than tripled compared to 377 cases received between April and October last year. The report also stated that the exchange guarantees an immediate response to all such requests, providing full compliance to these enforcement agencies. Although the required response time is 72 hours after the request, the exchange claimed to have responded within 22 minutes to each request.
95% of Blockchain-Based Crypto Scams
The report also shed some light on the nature of these crypto-related scams, arguing that the overwhelming majority (about 95%) of these cases are based outside the blockchain ecosystem and the majority are traditional financial market scams. The report also categorizes the different scam approaches that are commonly used, claiming that 40% of all crypto scams are Ponzi scams, 25% are phishing scams, another 25% are impersonation scams, and about 5% are identity theft.
Strengthening government oversight
As the cryptocurrency market in India has grown over the past year, the government has taken notice. Not only does it do wonders with a high-yielding investment asset, it also draws the attention of undesirable factors that have been exploited to initiate fraudulent activity. Naturally, the government has tightened oversight of cryptocurrency exchanges and put pressure on law enforcement agencies.
However, it could fully sprout due to government interference in the country’s crypto market. literally high 30% tax Cryptocurrencies imposed on cryptocurrency gains announced in the 2022 budget have prompted several investors to seek refuge abroad. Even 1% TDS on all crypto trades can be catastrophic for market liquidity. In fact, since the start of the fiscal year, the industry has experienced a significant “crypto brain drain,” with transactions falling by up to 90% and many crypto platforms deciding to move abroad.
Disclaimer: This article is provided for informational purposes only. It is not given or used as legal, tax, investment, financial or other advice.