The recent controversies surrounding Binance, particularly the growing interest of Indian crypto users in these exchanges, have brought the security and reliability concerns of global exchanges to the forefront. Industry experts highlighted the need for regulations by the Indian government for exchanges serving Indian users and emphasized the significant dimensions of taxation related to trading in India.
Binance, the world’s largest cryptocurrency exchange, agreed to pay $4.3 billion to resolve money laundering charges brought by the US Department of Justice. Founder Changpeng Zhao (CZ) accepted the charges and resigned from his position.
The exit of global exchanges like FTX, especially after the imposition of taxes on crypto transactions in India, has increased concerns among crypto investors about potential losses as Indian users turn towards global platforms like Binance. While the Binance incident has not yet resulted in significant fund losses for Indian users, it emphasized the necessity of robust user protection measures.
Kashif Raza, co-founder of the crypto news analysis platform Crypto Kanoon, highlighted the need for a regulatory framework similar to the regulations imposed on global banking and insurance companies entering the country for global platforms to interact with Indian users.
Dilip Chenoy, President of Bharat Web3 Association, drew attention to the inequality between Indian exchanges and foreign exchanges serving Indian users. He emphasized the need for the Indian government to define the boundaries of trading on foreign exchanges and provide transparency and protection for users.
Vikram Subburaj, CEO of Giottus, pointed out that such actors could harm the ecosystem and undermine trust in Indian exchanges. Sidharth Sogani, founder of crypto research firm CREBACO, suggested reducing the details of trading in India to promote trading on Indian exchanges and making trading in India more attractive instead of implementing measures to prevent capital flow to global exchanges.