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Time of India
4 hours ago
- Business
- Time of India
SEC's crypto confusion deepens as next-gen ETFs test limits
A new line of yield-chasing crypto funds is forcing the Securities and Exchange Commission to confront unresolved gaps in its regulatory framework, just as the Trump administration eases oversight of digital assets. The immediate dispute centres on two proposed funds from ETF firms REX Financial and Osprey Funds that would allow investors to earn rewards by deploying Ether and Solana tokens to help validate blockchain transactions, a process known as staking. The firms said they had cleared an initial SEC registration hurdle last week, but agency staff took the unusual step of objecting that very same evening. Staff warned the products may not meet standards to qualify as investment companies under federal law, raising broader questions about the regulation of a hot corner of the crypto-investment world. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cristiana Oliveira mostra a sua figura perfeita em novas fotos 33 Bridges Undo SEC staff noted that to meet the definition of an investment company, a firm must primarily invest in securities. That's a problem when it comes to digital assets: there are no clear lines around what crypto activities trip securities laws and what don't. Crypto Tracker TOP COIN SETS Web3 Tracker 1.21% Buy DeFi Tracker 0.98% Buy NFT & Metaverse Tracker -0.27% Buy BTC 50 :: ETH 50 -0.94% Buy Smart Contract Tracker -1.53% Buy TOP COINS (₹) Solana 12,955 ( 2.42% ) Buy XRP 187 ( 2.37% ) Buy Bitcoin 9,000,570 ( 1.77% ) Buy BNB 55,543 ( 1.14% ) Buy Ethereum 213,477 ( 1.11% ) Buy 'When ETFs generate income from staking, they may start to resemble traditional investment companies under the Investment Company Act — especially if investors are relying on the managerial efforts of others to earn those returns,' said Adam Gana, an attorney at law firm Gana Weinstein LLP. 'However, these types of ETFs are testing the boundaries of what counts as an investment company, and the SEC is sending mixed signals.' Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » Gana added that 'just because you throw some stocks into the mix doesn't mean the SEC will look the other way.' Live Events The SEC, REX and Osprey declined to comment. The general counsel at REX said earlier that the firm expected to satisfy the SEC's questions. The crypto industry has long argued that many tokens aren't securities and shouldn't fall under the SEC rules. Under Trump, the agency has appeared open to these arguments, and its new chair, Paul Atkins, is a proponent of digital currencies. SEC staff guidance has signalled that memecoins and stablecoins may fall outside securities definitions. As recently as May 29, the staff said federal securities laws generally don't apply to staking activities — further complicating the regulatory picture as firms try to launch novel products. These piecemeal statements create inconsistent policy, according to Corey Frayer, director of investor protection at the Consumer Federation of America. 'The SEC and the industry don't get to treat crypto assets as securities when it's convenient, and not as securities when they want weaker regulation,' said Frayer, who served as a senior adviser to former SEC Chair Gary Gensler, a frequent target of crypto industry scorn. At the crux of the matter is the so-called Howey test , which comes from a 1946 Supreme Court decision that still governs securities classification. Under the test, an asset can be considered a security — and thus will fall under SEC purview — if investors contribute capital with the expectation derived from the managerial efforts of others. Bitcoin is generally considered a commodity but the status of other tokens like Ether and Solana are less clear. SEC Commissioner Hester Peirce, head of the agency's crypto task force, took the unusual step of highlighting the SEC staff's queries about whether the proposed funds met the definition. 'I have those same questions,' Peirce wrote in a post on X. Donald Trump embraced the digital-asset industry during his reelection campaign, pledging to make the US the 'crypto capital of the planet.' Since re-entering the White House, he has established a national stockpile of Bitcoin, anointed a 'crypto czar' and welcomed memecoin enthusiasts to a private dinner in Washington. Firms have recently been successful in resolving SEC staff concerns about novel offerings. Earlier this year, agency staffers rebuked an ETF by State Street Corp. and Apollo Global Management — the world's first to invest in private credit — hours after the fund listed over concerns about the fund's liquidity and its ability to comply with valuation rules. The firms took action to rectify the issues. Also read: Thanks, Mr Sanjay Malhotra for giving wings to investors' dreams Crypto executives are optimistic that US regulators will eventually greenlight the staking ETFs. 'They've followed a crawl-walk-run approach — first futures ETFs, then spot ETFs, and hopefully staking ETFs,' said Matt Hougan, chief investment officer at Bitwise Asset Management Inc., which acquired an Ethereum staking platform last year. 'I'm hopeful we'll get to the finish line soon.'
Time of India
23-05-2025
- Business
- Time of India
From holding to hedging: How to choose between spot and futures crypto strategies
Crypto trading is mainstream and is viewed as an asset class in its own right, backed by market forces, and attracting interest from both retail and institutional investors. This is great news. Investors who, like Neo in the Keanu Reeves-starrer Matrix, took the red pill now face a fundamental question: what's the best way to invest? Two methods dominate, being spot trading and futures trading strategies. Each offers multiple benefits, comes with certain challenges, and caters to different investor cohorts. In essence, spot trading appeals to those seeking long-term investment and direct asset ownership, while futures trading is favoured by active traders looking to capitalise on rapid market movements and unlock short-term opportunities. It's important to understand how these strategies work, who they're meant for, and what benefits investors can get. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Gorgeous Female Athletes Ranked. But Did We Get It Right? Click Here Undo Understanding spot trading Spot trading refers to buying or selling crypto at the current market price. In the crypto space, this means buying digital assets with immediate ownership transfer. It works best for those aiming for long-term growth and who are comfortable holding assets digitally. Crypto Tracker TOP COIN SETS DeFi Tracker 8.85% Buy BTC 50 :: ETH 50 4.87% Buy NFT & Metaverse Tracker 4.71% Buy Smart Contract Tracker 4.23% Buy Web3 Tracker 3.65% Buy TOP COINS (₹) Ethereum 228,504 ( 2.12% ) Buy XRP 209 ( 1.52% ) Buy BNB 58,785 ( 0.79% ) Buy Tether 86 ( -0.07% ) Buy Bitcoin 9,470,485 ( -0.3% ) Buy Spot trading is straightforward to execute. It doesn't require users to navigate complex contracts, meet margin requirements, or manage expiries. Instead, it allows them to trade at real-time prices determined by supply and demand. Spot markets are typically liquid and transparent, making them ideal for newcomers. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » Live Events However, spot trading doesn't allow investors to use leverage or hedge their positions. This means returns are limited to the capital invested, and investors may have to sell at a loss if the market turns bearish. Additionally, it requires upfront capital, which can be a barrier for small or first-time investors. Exploring futures trading At its core, futures trading involves speculating on how the price of crypto will move, without actually owning the underlying asset. These are standardised contracts that allow traders to agree to buy or sell crypto at a predetermined price on a future date. Futures trading gives traders the opportunity to profit in both bull and bear markets by taking long or short positions, while also offering the option to hedge. It allows the use of leverage, enabling traders to control larger positions with relatively small amounts of capital, amplifying both potential gains and losses. While the rewards can be significant, they're often tempered by the risk of liquidations due to sudden margin calls if a trade moves against the position. This style of trading demands a deeper understanding of crypto markets, technical analysis, and concepts such as contract expiries and funding rates. It's best suited for experienced traders and can serve as a powerful tool for portfolio diversification and risk management . Breaking it down Both trading strategies serve different purposes. Spot trading is simple to understand and works on the principle of 'what you see is what you get.' For instance, if someone buys Bitcoin at $80,0000 and if it rises to $100,000, they can make a profit proportional to the price increase. Futures, on the other hand, involve entering into contracts to benefit from price movements. With 10x leverage, a 10% increase in the underlying asset's price can double the deployed capital, though a sudden drop could wipe out the capital entirely. Spot traders own the actual asset, can transfer it instantly across wallets, and can stake or use it. Futures traders, however, hold contracts that are often used for hedging positions or taking advantage of short-term price changes. The spot market offers stability and tangible ownership for long-term investors. For active traders or institutional players, futures present opportunities for profits through strategies such as arbitrage, hedging, and high-frequency trading. A real-life example helps drive the point home: Over the past few years, Bitcoin has witnessed several rallies. In early 2023, it began climbing from $16,500 and peaked at a whopping $73,000 by March 2024 (a rally similar to the one seen post-Donald Trump's 2016 election as U.S. President). This price surge in 2023 offered up to 340% returns for investors who bought and held the asset. An investor who bought 1 BTC in early 2023 would have made a profit of $56,500, without executing multiple trades or constantly tracking the market. Now, with Bitcoin reaching a new all-time high of over $110,000, the long-term growth story continues to build momentum. This latest milestone reinforces how holding through cycles can deliver substantial rewards for those who believe in the asset's future. On the other hand, a trader in the futures market using 10x leverage could have amplified gains significantly during this run. But the risk of capital erosion also rises, even a temporary price dip can trigger margin calls. While leverage can boost profits, long-term conviction in spot markets tends to give stronger and more sustainable returns. Spot markets are ideal for new and risk-averse investors who want to get comfortable in the crypto space without the pressure of short-term losses. As these investors become more experienced and understand the nuances of leverage and risk management, futures can serve as a powerful next step. Ultimately, the best strategy depends on an investor's financial goals and risk appetite. Success in crypto investing is driven by domain knowledge, discipline, and adaptability, skills that contribute to meaningful wealth creation and long-term portfolio growth. (The author, Raj Karkara is the COO at ZebPay) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
21-05-2025
- Business
- Time of India
India must lead, not linger, on global Crypto regulation
The year 2025 has emerged as a pivotal juncture for the crypto-asset industry within the evolving landscape of global digital innovation. Jurisdictions spanning from Washington D.C. to Brussels, and from Singapore to Dubai, are progressing beyond exploratory phases to the formal integration of digital assets into their established financial systems. As our country takes the next leap forward in economic and technological advancement, it is imperative that we actively engage and articulate our position on this transformative phenomenon. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click here for more information Undo Over the preceding year, the international discourse surrounding crypto-asset regulation has transitioned from a question of implementation to a focus on modalities. The United States, previously noted for its regulatory ambiguity, is now undertaking substantive measures to supplant its enforcement-centric approach with a framework predicated on clearly defined rules. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Crypto Tracker TOP COIN SETS BTC 50 :: ETH 50 1.52% Buy DeFi Tracker 0.95% Buy Smart Contract Tracker -0.97% Buy Web3 Tracker -4.09% Buy NFT & Metaverse Tracker -8.97% Buy TOP COINS (₹) Ethereum 222,343 ( 2.26% ) Buy Bitcoin 9,223,097 ( 2.22% ) Buy BNB 56,551 ( 1.72% ) Buy XRP 204 ( 0.74% ) Buy Tether 86 ( 0.11% ) Buy Recent legislative initiatives are addressing inter-agency jurisdictional complexities and Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » establishing explicit parameters for stablecoins and investment products derived from crypto-assets . These reforms are not merely legal adjustments; they are strategic enablers for the mobilization of mainstream capital, the attraction of technological innovation, and the cultivation of public trust in this nascent asset class. Live Events The European Union's recent implementation of the Markets in Crypto-Assets (MiCA) framework has elevated global regulatory benchmarks. This represents the first instance of a pan-jurisdictional, harmonized regulatory regime governing crypto-assets. MiCA provides clarity for businesses operating within the digital asset space, enhances consumer protection, and adds strategic depth to the EU's broader digital finance agenda. Within the Asian financial sphere, key hubs are articulating definitive regulatory intentions. The Hong Kong Special Administrative Region is actively cultivating an environment conducive to becoming a regional center for crypto-assets, while Singapore has finalized its regulatory framework for stablecoins and operates a stringent licensing regime for digital asset service providers. Both jurisdictions are adeptly navigating the delicate equilibrium between fostering innovation and ensuring robust investor protection. Japan, an early adopter in this domain, continues to refine its Virtual Asset Service Provider (VASP) licensing framework and mandates the segregation of client funds, thereby ensuring robust safeguards for consumers. South Korea is in the process of formulating comprehensive legislation aimed at consolidating crypto-asset oversight and establishing clear standards pertaining to disclosure, reserve requirements, and cybersecurity protocols. In the Middle East, the United Arab Emirates is strategically positioning itself as a prominent destination for global financial technology firms through regulatory frameworks spearheaded by Dubai's Virtual Asset Regulatory Authority (VARA) and Abu Dhabi's Financial Services Regulatory Authority (FSRA). These authorities have instituted licensing regimes, regulations governing virtual asset exchanges, and regulatory sandboxes designed to foster innovation while maintaining rigorous compliance standards. In this global context, India 's current stance warrants critical evaluation. While commendable progress has been made in areas such as taxation and the monitoring of financial intelligence related to digital assets, the absence of a publicly available, principles-based discussion paper on the regulation of crypto-assets remains a notable gap. Our country has demonstrated grounds for global leadership in the development of digital public infrastructure, exemplified by initiatives such as UPI, Aadhaar, and ONDC. Consequently, the perceived lag in proactively shaping the future of digital assets is incongruous with this established trajectory. Our Fintech innovators possess world-class capabilities, the consumer base exhibits a strong affinity for digital solutions, and our developers are integral to the global crypto-asset infrastructure. However, the lack of a clear domestic regulatory framework risks the migration of both capital and talent to more accommodating jurisdictions and greener pastures. A structured national dialogue, predicated on reasoned deliberation rather than reactive measures or inconsistent signals, is essential now more than ever. The publication of a comprehensive discussion paper would serve as an optimal initial step in catalyzing this crucial process. Furthermore, India is scheduled for a Financial Stability Board (FSB) peer review in October 2025, which will assess our nation's preparedness and alignment with international standards in the regulation of crypto-assets. Demonstrating clear regulatory intent prior to this review is of paramount importance. Additionally, September 2025 will mark the second anniversary of the G20 Delhi Declaration, which underscored the critical need for global cooperation in the regulation of the crypto-asset ecosystem. Our country can no longer afford to defer decisive action in this domain. The global landscape is rapidly evolving, and it is imperative that we align our trajectory accordingly. (The author G M Harish is a Member of Parliament) ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
14-05-2025
- Business
- Time of India
Tiny company with China ties announces big purchase of Trump cryptocurrency
A struggling technology company that has ties to China and relies on TikTok made an unusual announcement this week. It had secured funding to buy as much as $300 million of $TRUMP, the so-called meme coin marketed by President Donald Trump. GD Culture Group , a publicly traded firm with a Chinese subsidiary, has only eight employees, its public filings show, and recorded zero revenue last year from an e-commerce business it operates on TikTok, a Chinese-owned video-sharing app. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Doctors Are Stunned: This Patch Targets Stubborn Belly Fat Overnight Today's Health Insight Learn More But on Monday, GD Culture Group became the latest business with foreign ties to seize on Trump's crypto venture, which channels profits directly to the Trump family and has generated conflicts of interest that have alarmed ethics experts. (Meme coins like $TRUMP are a type of cryptocurrency based on an online joke or celebrity mascot and have traditionally not had any utility beyond speculation.) Crypto Tracker TOP COIN SETS DeFi Tracker 34.62% Buy AI Tracker 34.26% Buy NFT & Metaverse Tracker 29.10% Buy Web3 Tracker 21.50% Buy Crypto Blue Chip - 5 17.41% Buy TOP COINS (₹) Ethereum 224,319 ( 6.91% ) Buy XRP 223 ( 4.69% ) Buy BNB 56,069 ( 1.34% ) Buy Bitcoin 8,833,359 ( 0.9% ) Buy Tether 85 ( -0.05% ) Buy In its statement, GD Culture Group, which is traded on the Nasdaq, said it would spend $300 million on a stockpile of bitcoin and $TRUMP, using proceeds from a stock sale to an unnamed entity in the British Virgin Islands, a popular tax haven. It confirmed that investment plan in a securities filing late Tuesday. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » The purchase would create clear ethical conflicts, enriching Trump's family at the same time that the president tries to reach a deal that would allow TikTok to keep operating in the United States rather than face a congressionally approved ban. Live Events The announcement also shows how investors around the world, including some that have virtually no public footprint, have latched on to the president's crypto ventures to boost their own business prospects. Just asserting a connection to Trump's business can quickly raise a company's profile. GD Culture Group's struggling stock rose 12% on Monday, before losing those gains the next day. "Make no mistake. These foreign entities and governments obviously want to curry favor with the president," said former Rep. Charles Dent, R-Pa., who was the chair of the House Ethics Committee. "This is completely out of bounds and raises all sorts of ethical, legal and constitutional issues that must be addressed." Investors in foreign countries have rushed to stock up on the $TRUMP coin since it hit the market in January. Some have stated explicitly that they hoped to use their purchases to influence Trump. GD Culture Group was less clear about its intentions. In its statement, the company said it wanted to "enhance its balance sheet with high-performance, scalable digital assets." It is unclear whether the company will even follow through on the announcement, or how much of the $300 million it has received from its unidentified investor. Last month, the company disclosed that it was in danger of losing its Nasdaq listing because it had failed to meet certain financial requirements. But any purchase by GD Culture Group would be the first known example of a China-linked firm buying Trump's meme coin. In its financial disclosures, the company has noted that its subsidiary, Shanghai Xianzhui, might be influenced by demands from the Chinese government, though that is not unusual wording for a Chinese company. "The Chinese government may intervene or influence its operations at any time," the company said in an annual report filed in March. In recent weeks, the Trump family has faced an intensifying backlash in Washington over its business dealings with foreign countries. On the Senate floor Tuesday, Sen. Chris Murphy, D-Conn., spent 20 minutes walking through the various sources of overseas money pouring into the Trump family business, including the meme coin, a real estate deal involving the government of Qatar and a separate $2 billion crypto deal with a firm backed by the United Arab Emirates. "If a mayor of a small town was selling meetings at City Hall for a thousand bucks, he would be run out of town on a rail, but that's exactly what Donald Trump is doing in the Middle East and all over the world," Murphy said. Representatives for the White House, the Trump Organization and GD Culture Group did not respond to requests for comment. Trump started selling the $TRUMP coin three days before his inauguration, one of several crypto ventures that he and his sons have pursued. The coin's price briefly surged, then crashed just as quickly, costing investors billions of dollars. Last month, Trump and his business partners announced that the top 220 buyers of the coin would be invited to a dinner with the president at his golf club in Virginia, sparking another round of frantic trading that further enriched the Trump family. An analysis by The New York Times and crypto forensics firm Nansen found that many of the coin's buyers were based overseas in countries including Mexico, Singapore and Australia. Under federal law, foreign investors are barred from donating to a political campaign or a president's inaugural fund. But Trump's crypto ventures have offered a new avenue for these overseas buyers to support him financially. In April, a Mexico-based shipping firm, Fr8Tech, announced that it would spend $20 million on Trump's meme coin as a way to "advocate for fair, balanced and free trade between Mexico and the U.S." The statement by GD Culture Group did not mention any policy objectives. Xiaojian Wang, the CEO, said the company was embracing "industrial transformation" through cryptocurrencies and moving to "strengthen our financial foundation." It was unclear how exactly GD Culture Group had secured the funding to buy hundreds of millions of dollars of crypto. In its statement, the company did not reveal any information about the entity in the British Virgin Islands that agreed to purchase its stock. In its filing with the Securities and Exchange Commission on Tuesday, GD Culture Group confirmed its plans to buy $TRUMP -- but again omitted any information about the entity that is financing the purchase. Historically, the British Virgin Islands has been a favorite jurisdiction for overseas investors seeking to maintain confidentiality, because it is easy to set up a shell company there. This article originally appeared in The New York Times.
Time of India
13-05-2025
- Business
- Time of India
Govt instructs crypto exchanges to monitor J&K transactions amid money laundering concerns
Mumbai: Indian cryptocurrency exchanges have been told by the government to keep an extra eye out for transactions linked to persons located in Jammu & Kashmir and border areas. The Financial Intelligence Unit (FIU-IND), the central agency dedicated to curb money-laundering and financial crimes, communicated this to several local crypto platforms last week, two persons aware of the advisory told ET. Crypto bourses are directed to particularly watch out and report trades involving 'private wallets' that allow managing of virtual digital coins without relying on third parties like exchanges or crypto custodians. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Co-Founder of Google Brain, Andrew Ng, Recommends: "These 5 Books Will Turn Your Life Around" Blinkist: Andrew Ng's Reading List Undo If regular banking channels are to be avoided in making payments to dubious actors, terrorists, or their handlers, cryptos, moved from an exchange wallet to a private wallet, can be directly transferred to the private wallet of the payee through a blockchain network. Under the circumstances, exchanges will have to keep tabs on withdrawals from exchange wallets to private wallets as well as deposits from them. Crypto Tracker TOP COIN SETS DeFi Tracker 34.61% Buy AI Tracker 33.29% Buy NFT & Metaverse Tracker 30.81% Buy Web3 Tracker 24.30% Buy Crypto Blue Chip - 5 17.64% Buy TOP COINS (₹) XRP 213 ( 5.04% ) Buy BNB 55,794 ( 0.02% ) Buy Tether 85 ( -0.55% ) Buy Bitcoin 8,707,908 ( -2.34% ) Buy Ethereum 210,276 ( -2.62% ) Buy "As per the instructions, exchanges for the time being would focus more on crypto trades by persons in the border locations and report them to FIU, than the regular STR trades," said a person requesting anonymity due to the confidential nature of the communication. Just as banks share data with FIU, STR, or 'suspicious transaction report', refers to regular filing of information on suspicious trades and activities by crypto exchanges with central body. Did you Know? The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors. View Details » Over the past one year, exchanges have restricted free withdrawals of cryptos, insisting on enhanced due diligence of customers-enquiring about the identity of beneficiaries and the purpose of withdrawals to private wallets. The safeguards, though not fool-proof, have been put in place as it is widely perceived that cryptocurrencies can be used for illicit purposes, thanks to their pseudonymous nature and the relative ease with which they can be moved across borders. Live Events "For instance, privacy coins like Monero or Zcash, which have greater privacy and anonymity, can be misused. Though these coins are not listed on Indian bourses, theoretically, a person can purchase a common and universally accepted crypto like USDT, transfer to its wallet with an exchange outside India, and then swap them for privacy coins before making payments. Such transactions would not leave a trail that Indian law enforcement agencies can track easily," said an industry person. Indeed, ever since Binance, one of the world's largest crypto exchanges, has been registered with FIU-IND, many crypto users have been transferring part of their coin holdings to Binance wallets run from other countries. "Some of the exchanges are allowing coin withdrawals once they verify that the Binance wallet belongs to the customer. But, once cryptos are moved to Binance, they can be transferred, swapped freely, or paid to anyone. Since regulations are unclear and applicability of foreign exchange laws are ambiguous in crytos, platforms find it tough to fully clamp down on such transfers once the account holder ticks the necessary boxes," said a source. Agencies SEBI SEEKS AIF DATA The Securities & Exchange Board of India reached out to trustees of private equity and venture capital funds-also known as alternative investment funds (AIFs)-last Friday to evaluate risks related to "money laundering, terrorist financing and proliferation financing." Among other things, the trustees were told to ask the funds houses whether they had identified the beneficial owners while on-boarding clients. AIFs are required to find out the last natural persons behind entities which own 10% or more in an investor (like companies, partnerships etc). While this could well be part of the usual regulatory drill, large AIFs have been asked to disclose the percentage of 'high-risk customers', 'percentage of clients from countries in the list prepared by the Financial Action Task Force (FATF), the global anti-money laundering body, and proportion of clients on internet-based transactions.
