Indian Authorities Crack Down on Crypto-Based Gaming and Betting Apps
Indian authorities are increasing their efforts to crack down on gaming and betting applications that use cryptocurrencies and offshore companies to evade taxes. The investigation is targeting a group called Parimatch, based in Cyprus, which is accused of operating one of the largest networks involved in these activities. It is alleged that the group has collected over $84 million from Indian users of gaming apps and converted these funds into cryptocurrencies to avoid detection. The Directorate General of Goods & Services Tax Intelligence (DGGI) is leading the probe and has uncovered a complex web of individuals and entities involved in the operations.
Key points:
– Indian authorities are investigating gaming and betting applications that use cryptos and offshore companies to evade taxes.
– Parimatch, based in Cyprus, is alleged to have collected over $84 million from Indian users and converted the funds into cryptocurrencies.
– The DGGI has exposed a network of individuals and entities involved in these activities and has frozen over 400 bank accounts linked to the scheme.
– Cryptocurrencies make it difficult for authorities to trace the funds, adding complexity to the investigation.
– The Enforcement Directorate (ED) is examining other gaming and betting companies suspected of using similar tactics.
The investigation led by the DGGI has already seen the director of an unregistered payment aggregator arrested, as well as over 400 bank accounts linked to the scheme frozen. However, many of the funds have already been converted into cryptocurrency, making them harder to trace. The use of cryptocurrencies adds a layer of complexity to these activities and makes it difficult for authorities to track them. The Enforcement Directorate is actively investigating other gaming and betting companies suspected of using similar tactics. The Indian government is also discussing possible measures to restrict these platforms.
Hot Take
The crackdown on gaming and betting applications using cryptocurrencies in India highlights the challenges faced by authorities in regulating the crypto space. The use of cryptocurrencies makes it harder to trace funds and enforce tax regulations. This case is just one example of the ongoing battle between regulators and those using cryptocurrencies for illegal activities. As the crypto industry continues to evolve, it is crucial for authorities to adapt and find effective ways to tackle these challenges.
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