The Indian government stated in a recent declaration to Lok Sabha that there is no fixed timeline for the rollout of the comprehensive set of regulatory guidelines for virtual assets.

The government’s response followed queries posed by two Members of Parliament on what steps were being taken to set up a structured regulatory framework along with an expected timeline for such regulations.

Although the administration noted that it consulted with industry stakeholders and relevant international organizations both formally and informally, it asserted that policy efforts on VDA are needed globally in order to avoid regulatory arbitrage to ANI. India seeks to have effective regulation of borderless crypto assets emerge only through deep international cooperation. 

As taxation on VDA-related income already exists and with VDA transactions brought under the Prevention of Money Laundering Act since March 2023, the government said crypto assets are borderless and thus require international cooperation to prevent regulatory arbitrage. The adoption of the “G20 Roadmap on Crypto Assets” during India’s G20 Presidency brought forth the pressing need for collaborative action at the global level while urging all jurisdictions, especially emerging economies, to develop risk-sensitive regulation.

However, challenges linger as India navigates the path of innovation and investor protection alongside economic strength and financial stability. Given that VDAs transcend borders, the investor protection framework is seen as lacking without robust international cooperation. A clear regulatory timeline leaves market participants with clarity to contend with, as policies rooted in national interest as well as shifting global consensus about how to regulate digital assets continue to take shape.

These latest developments uphold a rising vulnerability in India’s quickly changing crypto sector. While it leads many countries in grassroots digital asset adoption, its popularity has also put it at the top of the list for many fraudsters.

The Andhra Pradesh scam, the most recent in a string of high-profile crypto-related frauds, fits a mold that has emerged elsewhere this year in India, where the lure of appealing monthly returns and aggregates framed as affiliated to reputable exchanges have brought investors from all backgrounds into elaborate enterprises.

 German authorities confiscated 13 crypto ATMs and seized nearly $28 million in cash across 35 locations.

It’s been quite the summer for Germany and crypto. German authorities have faced criticism for their negative stance on crypto after selling seized Bitcoin (BTC). Recent busts from August 20 reveal that German authorities are still cracking down on crypto malpractice.

On Aug. 20, German authorities carried out a wide-reaching anti-money laundering operation, confiscating 13 crypto ATMs and almost $28 million in cash from 35 locations nationwide, according to Reuters.

The raids, led by financial watchdog BaFin in collaboration with police and the Bundesbank, targeted machines operating without the necessary licenses, posing significant money-laundering risks.

Crypto ATMs are machines that allow users to buy or sell cryptocurrencies like Bitcoin using cash or debit cards. They function similarly to traditional ATMs but are designed specifically for cryptocurrency transactions.

German authorization for crypto ATMs

BaFin finds that converting euros to cryptocurrencies, or vice versa, constitutes a commercial activity that requires explicit authorization under Germany’s Banking Act. 

The unlicensed operation of these ATMs raised concerns over potential links to criminal activities, including money laundering and terrorist financing, given the anonymity often associated with such transactions.

The watchdog reiterated its commitment to safeguarding the integrity of the German financial system, highlighting the importance of regulatory compliance to protect consumers. 

ATM operators can now face prosecution, with penalties of up to five years in prison, according to AML Intelligence.