Though Bitcoin as well as the rest of the crypto assets are attempting to rise above the bear market, several projects within the industry are witnessing a downfall. Regulatory agencies appear to be additionally strict in their operations against the crypto platforms such as Vauld more than ever.
Vauld Hit with the Freeze of $46M Worth in Assets by Indian Authorities
The authorities in India especially have not exercised such severe operations up till now. Vauld, a well-known crypto venue, counts as entangled in many difficulties because the country’s Enforcement Directorate is keenly observing the platform. On Thursday, the regulator expressed its intention to freeze a huge amount of approximately $46.5M (nearly Rs. 370 crores) in assets in Vauld’s possession.
The respective move is being witnessed at a very crucial moment in the history of the crypto industry. A noteworthy thing here is that the entirety of trading, withdrawals, and deposits have been suspended by Vauld on its venue previously in July. As it has been attempting to carry out its procedures of bankruptcy, the firm recently pursued protection from its creditors. it was additionally disclosed that the creditors of Vauld owe it an enormous amount of almost $400M. After the closure of Vauld’s assets by ED, it could experience additional suffering.
The crypto exchange, while stopping the services, asserted that the move of taking quick action according to the situation was in great favour of the stakeholders. Formerly, the venue also became a part of the news headlines when it sacked up to 30% of the workers operating under it. The possible cause behind the freezing of Vauld’s assets is that the Enforcement Directorate suspects the crypto agency of being engaged in activities related to money laundering.
Is the End of the Crypto Market Near in India?
The relationship of the Indian authorities with crypto has not been much friendly. Just in the previous week, up to $8M in assets on WazirX has been frozen by the Enforcement Directorate. The place of WazirX has been among the earliest crypto venues and presently it is considered to be the biggest crypto exchange operating within the Indian jurisdiction. The volume of the company had even surpassed the level of $43B in the previous year.
Potential anticipation is that the regulatory body would take many other financial companies (which are non-banking) under its control. Money laundering appears to be an important apprehension to the authorities at this time. In the midst of these things, up to 30% of the tax levied on crypto products has been responsible for decreasing the interest in this market.
This is why, while the entirety of the world has been involved in crypto adoption, the authorities In India have been profoundly inspecting this industry. Apart from that, if this concept is prolonged, the chances of a potential market crash in the Indian crypto industry are more probable. The ED is focusing on several other such institutions that might have infringed the guidelines provided on the behalf of the Reserve Bank of India.
