Quote from: Bureau on October 04, 2023, 11:24:13 AM

I recently came across this news on Economic times. All global CEX have been or are being requested to share their user database to the government of India. Every major CEX has made it mandatory for its users to pass KYC, it will be easy for them to collate the data and share it with India. India took this responsibility as it had the Presidency of the G20 summit 2023.

The problem that India will face is that these exchanges are based in countries that are tax heaven, those exchanges cannot be forced to share the data. India has time till March 2024 to come up with the database before the next G20 summit in 2024. Once the database is created it will be shared with the G21 group to fight against crime commited using cryptocurrency.

What do you think will be the impact of this database to the Indian community that are using International centralized exchanges?

Thanks.

Internationally things don't work this easily. It's more like a quid pro quo system that works when it comes to international data sharing. So if they want to gather data from international exchanges they obviously need to offer their data to these countries government as well. You cannot enforce this on them, also the threats of banning them might not also work because India isn't a very big market for them anyway.

Secondly, I am very sure this isn't to solve the crime committed using cryptos. NO ONE commits a crime using crypto and sweeps the money to a CEX. This is more to find about tax evasions and ensure tax compliance of 30% tax which the government has kept.

But as you said getting it from Tax haven exchanges would be like an impossible task for sure.