India’s Financial Intelligence Unit is looking to recoup at least $345 million in goods and services tax from 7 seven foreign cryptocurrency exchanges that operated in the nation.
Sources familiar with the matter told the Economic Times that India’s anti-money laundering body is ready to hear the petitions of the exchanges—Bitfinex, MEXC Global, Kraken, Huobi, Gate.io, Bittrex, and Bitstamp—which were barred from offering their services following show-cause notices sent by the regulator.
The hearing will be held sometime this week where these companies will present their cases for resuming operations in India by demonstrating their willingness to comply with India’s Prevention of Money Laundering Act as a reporting entity.
Compliance challenges and GST liabilities loom large
As a reporting entity these exchanges are required to conduct strict customer due diligence processes and report suspicious activity, but just adhering to these requirements won’t be enough to secure a re-entry into one of the world’s fastest-growing crypto economies, which ranked first in Chainalysis’ 2024 Global Crypto Adoption Index, showing increased usage of centralized exchanges.
The source added that exchanges will also be required to pay a fine, the amount of which will be determined based on their submissions to the regulator. Further, the regulator expects to collect approximately inr 2,900 crores (roughly $345.09 million) in GST from the seven trading platforms.
The GST is a comprehensive indirect tax imposed on the production, sale, and consumption of goods and services across India. Any foreign entity operating within India’s borders is required to register under the GST framework and pay the applicable tax when offering services to Indian customers.
The FIU calculates the outstanding liabilities based on the transaction fees these platforms collected from Indian customers before the December ban, as seen in the case of Binance which was asked to clear $86 million in pending GST after it completed registration and paid a $2.25 million fine to resume operations.
Additionally, according to the source, the GST authorities are considering issuing notices to other foreign cryptocurrency exchanges that have operated within India, ensuring all entities meet their tax obligations and align with India’s regulatory standards.
However, the source indicated that it could still “take a while” before the exchanges are allowed to resume operations, even if they agree to meet all regulatory demands, clear penalties, and align with stringent compliance measures. Based on a previous report from crypto.news, this process could extend until March 2025.
Sui recorded an impressive bullish run last day propelled by Grayscale’s recent move to open its Sui Trust to accredited investors.
Sui (SUI) registered a 17% price surge over the past day — rising from $0.74 on Sep. 2 to a monthly high of $1.05 earlier today. The token is also up by 27% in the past 7 days.
Following the price hike, SUI’s market cap surpassed the $2.75 billion mark — making it the 34th-largest crypto asset — with a daily trading volume of roughly $451 million.
One of the key drivers behind SUI’s recent price surge is Grayscale’s decision to open its Sui Trust to accredited investors. As one of the leading digital asset managers, Grayscale’s backing adds a layer of credibility, drawing institutional interest toward Sui.
At the same time, a broader market rally, marked by a rise in global cryptocurrency market capitalization from $2.08 trillion to $2.26 trillion on Sep. 12, has further fueled positive sentiment, boosting SUI’s upward trajectory.
Bulls dominate as SUI gears for price rally
Looking at data from Coinglass, the total open interest for SUI jumped from $212 million to $275 million, a rise of over 40% in the past 24 hours. Further, SUI’s aggregated funding rates have jumped to positive 0.0086%, denoting a shift in market sentiment.
The dominance of long-position holders over short-position holders hints at optimism among traders, betting on a potential price surge for SUI.
SUI price, RSI, and MACD chart | Source: crypto.news
SUI’s Relative Strength Index currently stands at 65, indicating that the token can still see some gains before reaching overbought levels, which may signal potential consolidation or minor pullback if it reaches higher levels.
Positive momentum is also evident when looking at the Moving Average Convergence Divergence, with the MACD line trending above the signal line and both moving upward, reinforcing the ongoing bullish trend. Accompanied by rising trading volume, this is indicative of strong buying interest and suggests potential for further price increases in the short term.
Key levels to watch include potential resistance around the $1.10 mark, which could pose a challenge for further gains. If the price breaks past this level, a stronger rally may follow. On the downside, the $0.90 level is acting as support. A drop below this could signal a possible reversal to $0.70 or a consolidation phase as confirmed by crypto analyst Hov.
As Democrats and Republicans argue over DeFi, what message does Trump’s silence send to the crypto community? Is it a sign of disinterest or strategic neutrality?
Table of Contents
DeFi gets the spotlight
On Sep. 10, the first-ever Congressional hearing on decentralized finance took place, marking an important moment in the evolution of this technology.
Titled “Decoding DeFi: Breaking Down the Future of Decentralized Finance,” the hearing was led by Congressman French Hill and lasted nearly two-and-a-half hours.
U.S. lawmakers gathered to discuss both the potential benefits and risks that DeFi could introduce to the financial system.
The hearing exposed a clear divide among lawmakers. Republicans, led by Hill, were optimistic about DeFi’s ability to remove intermediaries and transform financial markets.
As Hill stated, “by substituting intermediaries for autonomous, self-executing code, decentralized finance can shift the way financial markets and transactions are currently structured and governed.”
Meanwhile, Democratic lawmakers raised concerns, focusing on DeFi’s potential misuse, particularly its role in enabling criminal activity. While Republicans called for lighter regulations, Democrats advocated for stricter oversight, citing the risks of illicit use.
What does this hearing mean for the future of DeFi and the broader crypto market, especially with the U.S. presidential elections approaching?
A clash of perspectives on DeFi
The hearing itself turned into a battlefield of opinions, with sharp contrasts in how lawmakers viewed DeFi. The subcommittee chair, Hill, kicked off the discussion by focusing on the opportunities DeFi and tokenization could offer to finance.
However, not everyone saw it that way. Congressman Brad Sherman, a Democrat from California, took a more critical approach. He expressed concerns that DeFi might be nothing more than a tool for tax evasion, especially for the ultra-wealthy.
What we have here is an effort to liberate billionaires from income taxation… Every time a billionaire successfully cheats on his taxes, a member of the Freedom Caucus earns his wings.
In response to Sherman’s concerns, Peter Van Valkenburgh, director of research at Coin Center, provided a counter-argument. He acknowledged that tax evasion is a crime but pointed out that DeFi’s transparent, decentralized ledger makes it difficult for bad actors to hide their activities.
Tax evasion is a crime. It should be aggressively policed. I do not, however, think that tax evasion and its existence warrants a 100% surveilled and controlled financial system.
Van Valkenburgh also pointed out the confusion surrounding tax guidance from the IRS. He argued that many crypto users want to comply with tax laws but lack clear instructions on how to do so.
A difficult area in the cryptocurrency space has been getting clear tax guidance from the IRS on how Americans can pay their taxes when they earn capital gains, or perhaps their wages, on these networks
He added that criminals are more likely to use traditional financial systems to hide illicit funds rather than transparent blockchain networks.
On the other side, Mark Hays, Senior policy analyst at Americans for Financial Reform, painted DeFi in a less favorable light. He described the space as volatile and rife with scams, where investors often face devastating losses.
Hays stressed that DeFi should not get a free pass and that existing securities laws should apply to decentralized systems to protect investors.
Meanwhile, Amanda Tuminelli, the chief legal officer at DeFi Education Fund, took a different approach. She highlighted DeFi’s potential to democratize finance. According to Tuminelli, traditional financial systems rely on intermediaries, often acting as gatekeepers.
“Big banks can and do deny access to the system for discriminatory reasons or no reasons,” she stated, contrasting this with DeFi’s open-access nature. She suggested that anyone with an internet connection can use DeFi, calling it “the epitome of financial inclusion.”
Tuminelli argued that treating DeFi as traditional finance is not the right approach, as the underlying structures are fundamentally different. She suggested that regulations should take into account the self-custodial nature and transaction anonymity of decentralized systems.
Crypto left out of the presidential debate spotlight
Vice President Kamala Harris and former President Donald Trump faced off on Sep. 10 in the second presidential debate of the 2024 election. Despite Trump’s well-known pro-crypto stance, the debate avoided any mention of crypto entirely.
Instead, the focus was on traditional economic issues, with no reference to crypto, blockchain, or broader financial technology topics.
Harris’ strong performance during the debate appeared to unsettle Trump, particularly as he struggled to defend his position on contentious issues like abortion.
All of this seemed to affect the crypto market, as Bitcoin (BTC) dropped from around $58,000 to $56,000 after the debate. As of Sep. 11, it has slightly recovered, hovering around $56,800.
Ethereum (ETH), the second-largest crypto by market cap, also experienced a minor dip of about 0.5%, trading at around $2,340 during the same period.
In a surprise for Trump, who has long positioned himself as a champion of deregulated financial markets, his odds of winning, according to online betting platform Polymarket, fell from 52% before the debate to 50% as of this writing.
Meanwhile, a CNN flash poll reflected Harris’ dominance, with 63% of viewers stating she outperformed Trump. However, most respondents noted that the debate wouldn’t influence their vote in November.
As the campaign continues and the demand for a third debate grows, it remains to be seen whether crypto will finally take center stage.
What to expect next?
Throughout the Biden administration, Democrats have consistently been skeptical of crypto, highlighting the risks and pushing for stronger regulations. Amid this, Vice President Kamala Harris has remained silent on the issue, making her stance unclear.
Meanwhile, Trump, who once strongly opposed crypto, has shifted his tone in an effort to attract pro-crypto voters. In recent months, Trump has shown more openness toward blockchain and crypto on several instances.
However, like Harris, he has remained silent when it matters most, such as during the Trump vs. Musk Twitter space conversation in August and again during the second presidential debate, where crypto was notably absent.
The future of crypto and DeFi in the U.S. remains uncertain. With the upcoming election, how the next administration handles this growing sector could have a lasting impact on both innovation and regulation in the financial space.
Dominic Williams, chief scientist at DFINITY Foundation, shared major upgrades implemented across the Internet Computer blockchain protocol.
Williams shared an updated Internet Computer (ICP) deck detailing new developments on the self-styled “World Computer” decentralized network. Perhaps the boldest claim in the document said ICP-native applications boast cyber attack immunity.
This means hackers and ransomware attacks cannot infiltrate tools built and hosted on ICP’s network. Improved security has paved the way for simplified blockchain web development and lowered app administration requirements, according to the deck.
The information shared by Williams also revealed that a new ICP software powers expanded artificial intelligence functions. Developers can train network-resident AI models to “design, build, deploy, and handoff” apps. One example detailed a user setting Bitcoin (BTC) sell limit orders using AI prompts. Limit orders refer to trades executed at pre-determined prices.
ICP has also introduced automated processes for decentralized autonomous organizations and on-chain governance. In other words, an AI model can manage tasks when community members submit proposals.
AI DAO tools on ICP can also finalize the proposal’s parameters if it gains community approval, reducing the chances of human errors and code bugs. Williams and the DFINITY Foundation noted that these updates have significantly boosted on-chain compute on ICP’s network, with the updated deck highlighting a 500% year-on-year growth in this area.
DFINITY Foundation spun out from Ethereum’s community in 2015 and launched the open-source ICP protocol in May 2021. ICP envisions itself as a global decentralized chain where anyone can build anything.
Osmosis has introduced the Polaris portal, a solution to the fragmentation that crypto users face across decentralized finance.
With crypto’s increasing popularity, the number of different blockchains and their associated ecosystems has surged. This has led to a difficulty where users are required to handle multiple wallets, navigate bridges, and conduct complicated transactions to engage with different chains.
Dubbed the “Token Portal,” Polaris will allow users to trade tokens across multiple blockchain ecosystems from a single interface, addressing liquidity and asset management divided by individual chains, according to a press release that Osmosis (OSMO) shared with crypto.news.
Polaris aims to address blockchain challenges by providing a chain-agnostic platform for trading assets across various networks such as Bitcoin (BTC), Solana (SOL), and Ethereum (ETH).
In simpler terms, Osmosis’s Polaris is a platform that lets users trade and manage tokens from different blockchains, like Bitcoin and Ethereum, in one place using their current wallet. This makes it easier to handle everything without switching between apps.
Polaris and its cross-chain integration
At its core, Polaris abstracts over existing decentralized exchanges, bridges, and wallets, enabling users to access liquidity across all chains without needing to switch between platforms.
The Polaris platform will support one-click token trading, portfolio tracking across networks, and easy acquisition of gas tokens required for transactions on various chains.
Polaris goes beyond Ethereum-based chains, incorporating non-EVM ecosystems like Solana, TON (TON), and Bitcoin. This cross-chain capability is powered by non-custodial technologies such as Multiparty Computation, allowing faster and more efficient integration of diverse blockchain technologies.
With Polaris, users can use their existing wallets and enjoy streamlined DeFi interactions, making it easier to manage assets across different ecosystems. This new approach aims to bridge to push DeFi towards a more user-friendly, decentralized future.
Dune, a platform specializing in onchain analytics, has integrated over 50 parachains from the Polkadot ecosystem, making it a comprehensive data hub for Polkadot’s blockchain network.
This Polkadot (DOT) expansion will allow developers, investors, and data analysts to access and analyze real-time data from the Polkadot ecosystem, according to a press release shared with crypto.news.
In other words, Dune has added data from over 50 different blockchains, known as parachains, in the Polkadot network, making it easier for people to track and analyze activity in real time.
Details of the Polkadot integration
This new integration broadens its coverage, allowing users to explore onchain activities such as transaction flows, DeFi activity, and developments in gaming and NFTs.
Earlier in 2024, Dune began supporting Polkadot, Kusama (KSM), and six parachains. Key parachains added in this integration include Moonbeam, Acala, Phala, and Mythos, each contributing to various sectors within Polkadot, ranging from DeFi to gaming.
This integration was developed through a partnership with Colorful Notion, ensuring reliable and accurate data. Additionally, Dune offers enhanced functionality via its API, allowing users to create flexible endpoints for deeper analysis.
Last year, Dune launched DuneAI, enabling users to query crypto data through natural language, removing the need for SQL. Additionally, Dune introduced the Dune Data Hub, allowing seamless integration and contribution of datasets for enhanced data management.
Hackers hijacked the Delhi Capitals’ X account, using the popular cricket franchise’s social media presence to push a scam Solana-based token.
Delhi Capitals, a cricket franchise team that competes in the popular Indian Premier League, fell victim to an X breach with hackers taking control of the account to advertise a Solana-based token with the ticker HACKER to the team’s over 2.6 million followers.
In the now-deleted posts, the bad actors took responsibility for the attack while announcing their intentions to “make profits” by targeting other X accounts in a bid to inflate the price of the HACKER token that was created a little over a day ago according to DEX screener data.
“We hack accounts on each account the token address will be posted and the token will pump,” the attackers wrote.
The attacker’s strategy is common in these sorts of attacks, where fraudsters exploit the large follower base of high-profile X accounts to promote crypto tokens. They artificially pump the token’s price and then sell off their pre-acquired holdings shortly after, leaving unsuspecting investors that rush in for a quick profit at a loss.
The culprits continued to make a series of similar posts, publicizing the scam token’s contract address, adding “search $HACKER to see our strength.” Shortly after, the Delhi Capitals management regained control of their account.
Meanwhile, searching X for the term “$HACKER” led to posts from another hacked account, sharing screenshots of similar attacks on the South Korean esports team T1 and other X accounts, all featuring the same message but with a different contract address.
However, the attacker’s efforts appeared to fall flat, with the HACKER token attracting little attention. At the time of writing, the scam token had a market cap of just $4,300 and only 46 transactions, most of which seemed to have been executed by the creators themselves shortly after the token’s launch.
Hackers keep finding ways around X’s security measures
Nevertheless, these attacks appear to be part of a growing trend where scammers target high-profile X accounts to promote deceitful crypto tokens—raising concerns about the platform’s security. The social media giant has yet to address this issue.
On Sep. 4, the X accounts of Lara and Tiffany Trump were hijacked simultaneously to mislead the public into buying a fake token themed around former president Donald Trump’s new decentralized finance project World Liberty Financial.
Just days earlier, French soccer star Kylian Mbappé fell victim to a similar breach and the attackers executed a pump-and-dump scheme using the MBAPPE token.
SuperVerse’s token, SUPER, surged over 17% in the past day, driven by the upcoming launch of a new Web3 action game on its platform.
The surge has spotlighted SuperVerse (SUPER) as the top-performing cryptocurrency among the top 300 digital assets by market value and elevated its price from $0.731 to $0.855.
This is the highest the token has been since June 13, with its market capitalization leaping to $385 million, positioning it as the 153rd largest digital asset globally, according to CoinGecko data.
SuperVerse (formerly SuperFarm) is a decentralized autonomous organization that connects blockchain game developers and players. Its native token, SUPER, is used for governance, fundraising, payments, and transactions within blockchain-based games across multiple blockchains, facilitated by its LayerZero infrastructure.
A key factor behind SUPER’s recent rally is the upcoming release of a new web3 public game on the SuperVerse platform, launching on Sep. 12. The combat-focused territorial warfare game, offering 30 million tokens in rewards, has sparked bullish sentiment around SUPER as the launch date approaches.
Another factor driving SUPER’s price is the recent growth of TON Station, a web3 gaming platform by SuperVerse on The Open Network (TON) blockchain, which has now exceeded 6.3 million users.
The renewed optimism led to a 330% increase in trading volume within 24 hours, boosting the bullish momentum for SUPER.
Data from Coinglass shows that SUPER’s daily open interest jumped by 147%, reaching $28 million at the time of writing. This, along with an increase in trading volume, indicates heightened investor activity, potentially contributing to the token’s continued rally.
SuperVerse’s price has broken above the upper Bollinger Band, which is currently at $0.8338, with the price standing at $0.8551. This breakout suggests strong bullish momentum, as the token has surpassed the typical resistance provided by the upper band.
Notably, SUPER has also moved above the 50-day Exponential Moving Average, with the Relative Strength Index nearing overbought territory. However, with the price moving above the upper Bollinger Band, further upward movement is possible, particularly if the strong buying interest persists.
If the upward trend continues, traders should watch for a breakout above $0.90 with strong volume which could push the token toward $1.00. However, caution is warranted due to the overbought RSI, as this could lead to a potential pullback or consolidation phase. In case of a reversal, the middle Bollinger Band at $0.70 may act as the first support level.
Singaporean regulators have no plans to allow cryptocurrency use for gambling due to the risks of money laundering.
During a Sept. 10 parliamentary address, Ms Sun Xueling, Minister of State for the Ministry of Home Affairs and Ministry of Social and Family Development, clarified Singapore’s regulatory stance on using cryptocurrencies in casino gambling. The minister’s remarks were made during the wrap-up speech for the Second Reading of the Casino Control (Amendment) Bill.
Introduced on July 4, 2024, the bill aims to future-proof the framework governing casino gambling activities in Singapore, while giving the Gambling Regulatory Authority the power to prescribe any wagering instrument as chips for casino gambling.
However, the minister has stressed that cryptocurrencies will not be part of this expanded scope.
While the amendments to Singapore’s Casino Control Act were promoted as a step toward “future-proofing the regime” and establishing a framework for “cashless gambling,” the Minister of State firmly ruled out the use of cryptocurrencies citing money laundering concerns.
“GRA has no intention of allowing cryptocurrency to be used as chips for casino gambling as this presents money laundering risks.“
Ms Sun Xueling, Minister of State for the Ministry of Home Affairs
Singapore’s exclusion of cryptocurrencies from its casino operations aligns with a growing recognition of the risks they pose in the realm of money laundering.
According to a January 2024 report by the UN Office on Drugs and Crime, cryptocurrencies and casinos have increasingly become tools for laundering illicit funds, with criminal networks exploiting the anonymity and lack of regulation associated with digital currencies to obscure the origins of illicit funds, using online casinos as conduits.
“Organized crime groups have converged where they see vulnerabilities, and casinos and crypto have proven the point of least resistance.”
Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific
A growing trend
Boycotting cryptocurrencies for gambling is part of a broader trend, as seen in Australia, where the government recently banned cryptocurrencies for online betting, including digital wallets and credit-linked cards, to help individuals maintain control over their gambling habits.
Similarly, Brazil has also banned the use of cryptocurrencies for gambling payments in April 2024, targeting digital assets like Bitcoin to enhance transparency and reduce the potential for money laundering.
Nevertheless, the global crypto gambling market tells a different story altogether. As previously reported by crypto.news, the crypto gambling market almost doubled to over $70 billion in the first half of 2024, with projections pointing toward a staggering $150 billion by 2030.
