To clean up crypto, raise the guardrails, Pg10

Key Highlights:

• Crypto exchanges face increasing scrutiny for facilitating money laundering and other illicit activities.
• FTX founder Sam Bankman-Fried was convicted of fraud in 2022, and Binance founder Changpeng Zhao pleaded guilty to violating anti-money laundering laws in 2023.
• The Financial Intelligence Unit (FIU) of India has levied fines on crypto exchanges like Binance, ByBit, and KuCoin between 2024 and 2025 for violating anti-money laundering laws.
• The Indian Cyber Crime Coordination Centre (I4C) has identified at least 27 exchanges allegedly used for laundering purposes between January 2024 and September 2025.

Detailed Insights:

• The anonymity and ease of cross-border transfers offered by cryptocurrencies make them a preferred medium for illicit activities like hawala and cybercrime.
• Following the Russia-Ukraine conflict, concerns arose about the use of crypto to evade international sanctions, highlighting the global implications of unregulated crypto usage.
• An estimated Rs 623 crore obtained through cybercrimes has been funneled through crypto routes, with trails leading to countries like Dubai, Cambodia, and China.
• Despite India having over 100 million crypto users, there is a lack of a comprehensive regulatory framework, necessitating policy clarity as the market is projected to grow from $2.6 billion to $15 billion by 2035.

Key Concepts Involved:

• Money Laundering: Concealing the origins of illegally obtained money.
• Hawala: An informal value transfer system based on trust.
• Financial Intelligence Unit (FIU): National agency responsible for receiving, processing, analyzing and disseminating information concerning financial activities suspected of being related to crime.