crypto exchanges: Indian crypto exchanges’ futures trade with foreign peers may test FEMA limits
Mumbai : As Bitcoin surged toward $70,000 and Wall Street went long on Donald Trump, Indian crypto exchanges tapped offshore bourses for crypto futures trade which is catching on, while many HNIs reportedly made misleading declarations to banks to show their foreign crypto holdings as ‘security’ investments.
Local bourses as well as these HNIs believe their trades are kosher — drawing comfort from the fact that the foreign exchanges they are dealing with are registered with Financial Intelligence Unit (FIU). However, they may be unwittingly walking through a minefield of rules on the Foreign Exchange Management Act.
Crypto exchanges in India draw liquidity from overseas exchanges like Binance to support the futures market. In the…
