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Indian Finance Minister Asks Crypto Investors to Exercise Caution as Authorities Investigate Exchanges

Indian Finance Minister Asks Crypto Investors to Exercise Caution as Authorities Investigate Exchanges

India’s finance minister has cautioned investors about cryptocurrency as the country’s Enforcement Directorate (ED) investigates a number of crypto exchanges and freezes the assets of some trading platforms.

Indian Finance Minister Cautions About Crypto

Indian Finance Minister Nirmala Sitharaman reportedly warned about cryptocurrency Saturday at an event organized by the BJP Economic Cell. She cautioned the public and entrepreneurs that cryptocurrency is not currency, stating:

The government has already warned. I think all of us will have to share our thoughts and move with a bit of caution on this.

On Thursday, News18 reported that the finance minister asked investors to exercise caution on crypto, emphasizing that a new law on cryptocurrency is coming soon.

Her statements came as India’s Enforcement Directorate (ED) probes cryptocurrency exchanges in relation to its money-laundering investigations. The law enforcement agency has frozen the assets of at least two cryptocurrency exchanges this month. Wazirx‘s bank assets worth $8 million were frozen on Aug. 5 and Vauld‘s bank and crypto assets worth about $46 million were frozen last week.

Responding to the ED’s allegations, Vauld released a statement Saturday revealing that it fully cooperated with the ED and provided all the required information and documents after receiving a summons in July. Noting that the freeze order is specific to one customer whose account was deactivated after using the exchange’s services for a brief period of time, the company stressed:

We respectfully disagree with the freezing order. We follow strict KYC requirements in every country, including India.

“We are seeking legal advice on our best course of action in order to protect the interests of the company, its customers, and all the stakeholders,” Vauld detailed.

What do you think about the finance minister cautioning investors about crypto and the ED investigating crypto exchanges? Let us know in the comments section below.

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