The Finance Minister of India Cautions Crypto Investors

The Finance Minister of India Cautions Crypto Investors

The Finance Minister of India has cautioned investors about cryptocurrency as the country’s Enforcement Directorate (ED) investigates several crypto exchanges and freezes the assets of some trading platforms.

Indian Finance Minister Warns Against Crypto

Indian Finance Minister Nirmala Sitharaman reportedly warned about cryptocurrency on 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."

News18 reported on Thursday that the Finance Minister asked investors to exercise caution on crypto, stating that a new cryptocurrency law is on the anvil.

Her statements were issued as India’s Enforcement Directorate (ED) probes cryptocurrency exchanges for money laundering. The law enforcement agency has already frozen the assets of at least two cryptocurrency exchanges. Wazirx‘s bank assets worth USD 8 million were frozen on August 5, and Vauld‘s bank and crypto assets worth about USD 46 million were frozen last week.

Responding to ED allegations, Vauld released a statement on Saturday revealing that it fully cooperated with the government agency and has 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 services of the exchange for a brief period, the company said:

"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 to protect the interests of the company, its customers, and all the stakeholders," Vauld detailed.