India Bitcoin and crypto ban concerns resurface

Indian regulators are reportedly considering a ban on cryptocurrencies again. According to local outlet Hindustan Times, the government has been consulting experts who support banning cryptocurrencies in favor of a central bank digital currency (CBDC).

Indian regulators are reportedly considering a ban on cryptocurrencies once again.

According to local outlet Hindustan Times, the government has been consulting with cryptocurrency experts who support banning cryptocurrencies in favor of a central bank digital currency (CBDC).

Two anonymous sources familiar with the matter told the news outlet that the consensus opinion is that the risks of cryptocurrencies outweigh their benefits.

“CBDCs can do whatever cryptos can do and even more to the benefit of the nation,” one of the anonymous sources said.

India's cryptocurrency sector has frequently encountered regulatory hurdles imposed by local authorities.

In 2018, the Reserve Bank of India banned financial institutions from providing services to crypto firms, a decision that was later overturned by the Supreme Court.

A proposed legislation in 2021 sought to ban cryptocurrencies once more. However, in 2022, instead of enforcing an outright ban, the government introduced one of the heftiest crypto tax regimes in the world.

Indian crypto traders are now subject to a 30% tax on cryptocurrency income, along with an additional 1% levy on each transaction.

India's CBDC, known as the digital rupee, is currently in its pilot phase. According to the Reserve Bank of India, retail tests have reached 5 million users.

Recent hacks of Asian exchanges BingX and Indodax have been tied together by the exploiters' use of a common address, MistTrack reveals.

Earlier, security experts suspected North Korean state hacking group Lazarus to be behind the $22 million Indodax hack in September.

Now, the blockchain trail suggests that the Lazarus Group is also the prime suspect in the BingX hack.

North Korean hackers have been linked to some of the year's biggest cyberattacks, two of which occurred against Asian crypto exchanges.

In May, Japan's DMM Bitcoin was hit with a $305 million exploit, while India's WazirX lost $235 million in July.

WazirX has been at the center of controversy this past week after its custody partner Liminal accused it of running a “disinformation campaign,” which WazirX claims led to the hack.

South Korea’s crypto exchange licensing requirements have led to the closure or suspension of operations at 14 local exchanges, leaving user funds stranded.

According to data provided to lawmaker Kang Min-guk by the Financial Services Commission (FSC), more than 33,000 customers of these now-defunct exchanges have been unable to reclaim 17.8 billion Korean won (about $13 million) in fiat and cryptocurrencies.

During the National Assembly’s audit of state affairs on Oct. 24, Kang said that more exchanges are expected to shut down due to strict local regulations, leaving additional funds inaccessible.

The local industry’s self-regulatory group, known as the Digital Asset Exchange Association, has set up a foundation with the FSC’s blessings to help return funds to users through a voluntary system.

Kang's office has slammed the voluntary model, with his office telling local media that it is “nonsensical.”

Throughout the nation’s state audit, which typically runs for about three weeks in October, the FSC’s handling of the crypto industry has faced harsh criticism from lawmakers.

They have accused the commission of showing favoritism toward Upbit, allowing it to achieve a monopoly while driving other exchanges out of business.

One lawmaker likened the FSC’s alleged actions to “Squid Game,” a children’s game popularized by the hit Netflix series of the same name. In the show, contestants are killed until only one remains.

Ubisoft, the gaming giant behind popular titles like Assassin’s Creed and Far Cry, entered the blockchain gaming space on Oct. 23 with the launch of its first Web3 game, Champions Tactics: Grimoria Chronicles, on the Japanese blockchain Oasys.

This turn-based role-playing game allows players to battle others using non-fungible token (NFT) characters on Oasys, a blockchain designed specifically for gaming.

Oasys has already attracted major gaming firms like Sonic the Hedgehog creator Sega and Pac-Man creator Bandai Namco. It supports games through specialized scaling networks known as “Verses.”

The project recently committed to a Web3 gaming expansion in Asia with backing from Japanese financial conglomerate SBI Holdings.

Ubisoft's move into the Web3 space adds to the growing momentum for blockchain games, following the success of Off The Grid, a game featuring optional blockchain elements on Avalanche subnet Gunz.

However, Off The Grid has taken a different approach, downplaying its crypto and NFT components and even distancing itself from the label.

“Off The Grid is not an NFT game. It’s a battle royale game with an optional NFT element. If you want to try out NFTs, you can; if you don’t want to, you don’t have to.