India's Pursuit for Regulatory Control in the Crypto Landscape
Introduction
In the labyrinthine world of digital currencies, a new chapter unfolds as India intensifies its scrutiny over the ethereal realm of offshore cryptocurrency exchanges. With nuance and determination that virtually mirrors the Byzantine complexities of the very currencies they seek to regulate, Indian authorities embark on a course of stringent oversight, bringing to the fore an ever-evolving narrative of control and compliance in the fintech sector. The government's latest manoeuvre—a directive to Apple Inc. to excise the apps of certain platforms, including the colossus Binance, from its App Store in India—signals a crescendo in the nation's efforts to rein in the unbridled digital bazaar that had hitherto thrived in a semi-autonomous expanse of cyberspace.
The directive, with ramifications as significant and intricate as the cryptographic algorithms that underpin the blockchain, stems from the Ministry of Electronics and Information Technology, which has cast eight exchanges, including Bitfinex, HTX, and Kucoin, into the shadows, rendering their apps as elusive as the Higgs boson in the vast App Store universe. The movement of these exchanges from visibility to obscurity in the digital storefront is cloaked in secrecy, with sources privy to this development remaining cloaked in anonymity, their identities as guarded as the cryptographic keys that secure blockchain transactions.
The Contention
This escalation, however, did not manifest from the vacuum of the ether; it is the culmination of a series of precipitating actions that began unfolding on December 28th, when the Indian authorities unfurled a net over nine exchanges, ensnaring them with suspicions of malfeasance. The spectre of inaccessible funds, a byproduct of this entanglement, has since haunted Indian crypto traders, prompting a migration of deposits to local exchanges that operate within the nation's regulatory framework—a fortress against the uncertainties of the offshore crypto tempest.
The extent of the authorities' reach manifests further, beckoning Alphabet Inc.'s Google to follow in Apple's footsteps. Yet, in a display of the unpredictable nature of enforcement, the Google Play Store in India still played host to the very apps that Apple's digital Eden had forsaken as of a nondescript Wednesday afternoon, marked by the relentless march of time. The triad of power-brokers—Apple, Google, and India's technology ministry—has maintained a stance as enigmatic as the Sphinx, their communications as impenetrable as the vaults that secure the nation's precious monetary reserves.
Compounding the tightening of this digital noose, the Financial Intelligence Unit of India, a sentinel ever vigilant at the gates of financial propriety, unfurled a compliance show-cause notice to the nine offshore platforms, an ultimatum demanding they justify their elusive presence in Indian cyberspace. The FIU's decree echoed with clarity amidst the cacophony of regulatory overtures: these digital entities were tethered to operations sequestered in the shadows, skirting the reach of India's anti-money laundering edicts, their websites lingering in cyberspace like forbidden fruit, tantalisingly within reach yet potentially laced with the cyanide of non-compliance.
In this chaotic tableau of constraint and control, a glimmer of presence remains—only Bitstamp has managed to brave the regulatory storm, maintaining its presence on the Indian App Store, a lone beacon amid the turbulent sea of regimentation. Kraken, another leviathan of crypto depths, presented only its Pro version to the Indian connoisseurs of the digital marketplace. An aura of silence envelops industry giants such as Binance, Bitfinex, and KuCoin, their absence forming a void as profound as the dark side of the moon in the consciousness of Indian users. HTX, formerly known as Huobi, has announced a departure from Indian operations with the detached finality of a distant celestial body, cold and indifferent to the gravitational pull of India's regulatory orbit.
Compliances
In compliance with the provisions of the Money Laundering Act (PMLA) 2002 and the recent uproar on crypto assessment apps, Apple store finally removed these apps namely Binance and Kucoin from the store after receiving show cause notice. The alleged illegal operation and failure to comply with existing money laundering laws are major reasons for their removal.
The Indian Narrative
The overarching narrative of India's embrace of rigid oversight aligns with a broader global paradigm shift, where digital financial assets are increasingly subjected to the same degree of scrutiny as their physical analogues. The persistence in imposing anti-money laundering provisions upon the crypto sector reflects this shift, with India positioning its regulatory lens in alignment with the stars of international accountability. The preceding year bore witness to seismic shifts as Indian authorities imposed a tax upon crypto transactions, a move that precipitated a downfall in trading volumes, reminiscent of Icarus's fateful flight—hubris personified as his waxen appendages succumbed to the unrelenting kiss of the sun.
On a local scale, trading powerhouses lament the imposition of a 1% levy, colloquially known as Tax Deducted at Source. This fiscal shackle drove an exodus of Indian crypto traders into the waiting, seemingly benevolent arms of offshore financial Edens, absolved of such taxational rites. As Sumit Gupta, CEO of CoinDCX, recounted, this fiscal migration witnessed the haemorrhaging of revenue. His estimation that a staggering 95% of trading volume abandoned local shores for the tranquil harbours of offshore havens punctuates the magnitude of this phenomenon.
Conclusion
Ultimately, the story of India's proactive clampdown on offshore crypto exchanges resembles a meticulously woven tapestry of regulatory ardour, financial prudence, and the inexorable progression towards a future where digital incarnations mirror the scrutinised tangibility of physical assets. It is a saga delineating a nation's valiant navigation through the tempestuous, cryptic waters of cryptocurrency, helming its ship with unwavering determination, with eyes keenly trained on the farthest reaches of the horizon. Here, amidst the fusion of digital and corporeal realms, India charts its destiny, setting its sails towards an inextricably linked future that promises to shape the contour of the global financial landscape.
References
- https://www.business-standard.com/markets/cryptocurrency/govt-escalates-clampdown-on-offshore-crypto-venues-like-binance-report-124011000586_1.html
- https://www.cnbctv18.com/technology/india-escalates-clampdown-on-offshore-crypto-exchanges-like-binance-18763111.htm
- https://economictimes.indiatimes.com/tech/technology/centre-blocks-web-platforms-of-offshore-crypto-apps-binance-kucoin-and-others/articleshow/106783697.cms?from=mdr
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Introduction
Misinformation has the potential to impact people, communities and institutions alike, and the ramifications can be far-ranging. From influencing voter behaviours and consumer choices to shaping personal beliefs and community dynamics, the information we consume in our daily lives affects every aspect of our existence. And so, when this very information is flawed or incomplete, whether accidentally or deliberately so, it has the potential to confuse and mislead people.
‘Debunking’ is the process of exposing false information or countering inaccuracies and manipulation by presenting actual facts. The goal is to minimise the harmful effects of misinformation by informing and educating people. Debunking initiatives work hard to expose false information and cut down conspiracies, catalogue evidence of false information, clearly identify sources of misinformation vs. accurate information, and assert the truth. Debunking looks at building capacity and educating people both as a strategy and goal.
Debunking is most effective when it comes from trusted sources, provides detailed explanations, and offers guidance and verifiable advice. Debunking is reactive in nature and it focuses on specific instances of misinformation and is closely tied to fact-checking. Debunking aims to mitigate the impact of misinformation that has already spread. As such, the approach is to contain and correct, post-occurrence. The most common method of debunking is collaboration between fact-checking groups and social media companies. When journalists or other fact-checkers identify false or misleading content, social media sites flag or label it such, so that audiences are alerted. Debunking is an essential method for reducing the impact and incidence of misinformation by providing real facts and increasing overall accuracy of content in the digital information ecosystem.
Role of Debunking the Misinformation
Debunking fights against false or misleading information by correcting false claims, myths, and misinformation with evidence-based rebuttals. It combats untruths and the spread of misinformation by providing and disseminating debunked evidence to the public. Debunking by presenting evidence that contradicts misleading facts and encourages individuals to develop fact-checking habits and proactively check for authenticated sources. Debunking plays a vital role in boosting trust in credible sources by offering evidence-based corrections and enhancing the credibility of online information. By exposing falsehoods and endorsing qualities like information completeness and evidence-backed data and logic, debunking efforts help create a culture of well-informed and constructive public conversations and analytical exchanges. Effectively dispelling myths and misinformation can help create communities and societies that are more educated, resilient, and goal-oriented.
Debunking as a tailoring Strategy to counter Misinformation
Understanding the information environment and source trustworthiness is critical for developing effective debunking techniques. Successful debunking efforts use clear messages, appealing forms, and targeted distribution to reach a wide range of netizens. Debunking as an effective method for combating misinformation includes analysing successful efforts, using fact-checking, relying on reputable sources for corrections, and using scientific communication. Fact-checking plays a critical role in ensuring information accuracy and holding people accountable for making misleading claims. Collaborative efforts and transparent techniques can boost the credibility and efficacy of fact-checking activities and boost the legitimacy and effectiveness of debunking initiatives at a larger scale. Scientific communication is also critical for debunking myths about different topics/concerns by giving evidence-based information. Clear and understandable framing of scientific knowledge is critical for engaging broad audiences and effectively refuting misinformation.
CyberPeace Policy Recommendations
- It is recommended that debunking initiatives must highlight core facts, emphasising what is true over what is wrong and establishing a clear contrast between the two. This is crucial as people are more likely to believe familiar information even if they learn later that it is incorrect. Debunking must provide a comprehensive explanation, filling the ‘information gap’ created by the myth. This can be done by explaining things as clearly as possible, as people may stop paying attention if they are faced with an overload of competing information. The use of visuals to illustrate core facts is an effective way to help people understand the issue and clearly tell the difference between information and misinformation.
- Individuals can play a role in debunking misinformation on social media by highlighting inconsistencies, recommending related articles with corrections or sharing trusted sources and debunking reports in their communities.
- Governments and regulatory agencies can improve information openness by demanding explicit source labelling and technical measures to be implemented on platforms. This can increase confidence in information sources and equip people to practice discernment when they consume content online. Governments should also support and encourage independent fact-checking organisations that are working to disprove misinformation. Digital literacy programmes may teach the public how to critically assess information online and spot any misinformation.
- Tech businesses may enhance algorithms for detecting and flagging misinformation, therefore reducing the propagation of misleading information. Offering options for people to report suspicious/doubtful information and misinformation can empower them and help them play an active role in identifying and rectifying inaccurate information online and foster a more responsible information environment on the platforms.
Conclusion
Debunking is an effective strategy to counter widespread misinformation through a combination of fact-checking, scientific evidence, factual explanations, verified facts and corrections. Debunking can play an important role in fostering a culture where people look for authenticity while consuming the information and place a high value on trusted and verified information. A collaborative strategy can increase the legitimacy and reach of debunking efforts, making them more effective in reaching larger audiences and being easy-to-understand for a wide range of demographics. In a complex and ever-evolving digital ecosystem, it is important to build information resilience both at the macro level for the ecosystem as a whole and at the micro level, with the individual consumer. Only then can we ensure a culture of mindful, responsible content creation and consumption.
References
SVIMS Director and Vice-Chancellor B. Vengamma lighting a lamp to formally launch the cybercrime awareness programme conducted by the police department for the medical students in Tirupati on Wednesday.
An awareness meet on safe Internet practices was held for the students of Sri Venkateswara University University (SVU) and Sri Venkateswara Institute of Medical Sciences (SVIMS) here on Wednesday.
“Cyber criminals on the prowl can easily track our digital footprint, steal our identity and resort to impersonation,” cyber expert I.L. Narasimha Rao cautioned the college students.
Addressing the students in two sessions, Mr. Narasimha Rao, who is a Senior Manager with CyberPeace Foundation, said seemingly common acts like browsing a website, and liking and commenting on posts on social media platforms could be used by impersonators to recreate an account in our name.
Turning to the youth, Mr. Narasimha Rao said the incognito mode and Virtual Private Network (VPN) used as a protected network connection do not ensure total privacy as third parties could still snoop over the websites being visited by the users. He also cautioned them tactics like ‘phishing’, ‘vishing’ and ‘smishing’ being used by cybercriminals to steal our passwords and gain access to our accounts.
“After cracking the whip on websites and apps that could potentially compromise our security, the Government of India has recently banned 232 more apps,” he noted.
Additional Superintendent of Police (Crime) B.H. Vimala Kumari appealed to cyber victims to call 1930 or the Cyber Mitra’s helpline 9121211100. SVIMS Director B. Vengamma stressed the need for caution with smartphones becoming an indispensable tool for students, be it for online education, seeking information, entertainment or for conducting digital transactions.
Introduction
According to a draft of the Digital Personal Data Protection Bill, 2023, the Indian government may have the authority to reduce the age at which users can agree to data processing to 14 years. Companies requesting consent to process children’s data, on the other hand, must demonstrate that the information is handled in a “verifiably safe” manner.
The Central Government might change the age limit for consent
The proposed Digital Personal Data Protection Bill 2022 in India attempts to protect child’s personal data under the age of 14 through several provisions. The proposed lower age of consent in India under the Digital Personal Data Protection Bill 2022 is to loosen relevant norms and fulfil the demands of Internet corporations. After a year, the government may reconsider the definition of a child with the goal of expanding coverage to children under the age of 14. The proposed shift in the age of consent has elicited varied views, with some experts suggesting that it might potentially expose children to data processing concerns.
The definition of a child is understood to have been amended in the data protection Bill, which is anticipated to be submitted in Parliament’s Monsoon session, to an “individual who has not completed the age of eighteen years or such lower age as the central government may notify.” A child was defined as an “individual who has not completed eighteen years of age” in the 2022 draft.
Under deemed consent, the government has also added the 'legitimate business interest' clause
This clause allows businesses to process personal data without obtaining explicit consent if it is required for their legitimate business interests. The measure recognises that corporations have legitimate objectives, such as innovation, that can be pursued without jeopardising privacy.
Change in Data Protection Boards
The Digital Personal Data Protection Bill 2022, India’s new plan to secure personal data, represents a significant shift in strategy by emphasising outcomes rather than legislative compliance. This amendment will strengthen the Data Protection Board’s position, as its judgments on noncompliance complaints will establish India’s first systematic jurisprudence on data protection. The Cabinet has approved the bill and may be introduced in Parliament in the Monsoon session starting on July 20.
The draft law leaves the selection of the Data Protection Board’s chairperson and members solely to the discretion of the central government, making it a central government set-up board. The government retains control over the board’s composition, terms of service, and so on. The bill does specify, however, that the Data Protection Board would be completely independent and will have a strictly adjudicatory procedure to adjudicate data breaches. It has the same status as a civil court, and its rulings can be appealed.
India's first regulatory body in Charge of preserving privacy
Some expected amendments to the law include a blacklist of countries to which Indian data cannot be transferred and fewer penalties for data breaches. The bill’s scope is limited to processing digital personal data within Indian territory, which means that any offline personal data and anything not digitised will be exempt from the legislation’s jurisdiction. Furthermore, the measure is silent on the governance of digital paper records.
Conclusion
The Digital Personal Data Protection Bill 2022 is a much-needed piece of legislation that will replace India’s current data protection regime and assist in preserving individuals’ rights. Central Government is looking for a change in the age for consent from 18 to 14 years. The bill underlines the need for verifiable parental consent before processing a child’s personal data, including those under 18. This section seeks to ensure that parents or legal guardians have a say in the processing of their child’s personal data.
