Latest news with #VASPs
Indian Express
14 hours ago
- Business
- Indian Express
Govt collected Rs 437 crore as income tax from crypto in FY24, up 63% from FY23
The government collected Rs 437.43 crore as income tax on gains from cryptocurrencies – or Virtual Digital Assets (VDA), as they are called legally – in 2023-24, up 63 per cent from the previous year, the Finance Ministry said on Monday. In a written response to a question in the Lok Sabha on the first day of the Monsoon Session of Parliament, Minister of State for Finance Pankaj Chaudhary said that the tax collected on income from VDAs in 2022-23 was Rs 269.09 crore. This rose to 437.43 crore in 2023-24. Data for 2024-25 is not available yet as the due date for filing income tax returns for the year has not passed, Chaudhary said. While India at present does not have any law regulating crypto, the government introduced a flat 30 per cent tax on profit generated through the sale of VDAs starting April 2022, with losses made on the sale of these assets not permitted to be set-off against any other income or be carried forward. Later, starting July 2022, a 1 per cent tax deducted at source (TDS) on cryptocurrency transactions came into effect. 'The Government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer,' Chaudhary further said. He added that while VDA transactions filed in income tax returns were not being matched in real-time with information filed by Virtual Asset Service Providers (VASPs), the TDS returns of these service providers and income tax returns filed by taxpayers were being analysed to identify any discrepancies in reporting of crypto transactions. 'Central Board of Direct Taxes has initiated NUDGE (Non-Intrusive use of Data to Guide and Enable) campaign to identify such discrepancies for further action. Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh,' Chaudhary said. The Indian Express had reported last month, quoting sources, that the income tax department is investigating tax evasion and laundering of unaccounted income by high-risk persons through investments in VDAs, with analysis of crypto transaction data showing 'significant violations' of income tax rules. In his response in the Lok Sabha on Monday, the Minister of State for Finance said the government had not made any estimate regarding the projected revenue loss due to under-reporting or misreporting of income from VDA or crypto transactions. The information from the finance ministry on the income tax collected from crypto comes a day after CoinDCX, one of India's leading cryptocurrency exchanges, disclosed that it had suffered a loss of around $44 million, roughly Rs 379 crore, due to a security breach. Meanwhile, another leading Indian crypto firm WazirX was hit by a cyberattack last year which saw hackers allegedly steal more than $230 million of users' holdings. According to a December 2024 paper by New Delhi-based tech policy think-tank Esya Centre, analysis of relevant transaction data from December 2023 to October 2024 showed that Indians traded more than Rs 2.63 lakh crore on offshore crypto platforms, which corresponds to Rs 2,634 crore in TDS owed by offshore platforms. According to the think-tank, the total TDS that has not been collected from offshore exchanges since July 2022 possibly exceeds Rs 6,000 crore. Over the next five years, the think-tank projected, total crypto trading by Indians on offshore platforms could lead to more than Rs 17,000 crore of uncollected TDS. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
Business Insider
7 days ago
- Business
- Business Insider
Ghana to regulate crypto exchanges
The Bank of Ghana (BoG) is putting the finishing touches on a comprehensive regulatory framework for cryptocurrency platforms and Virtual Asset Service Providers (VASPs), according to Governor Johnson Asiama. The Bank of Ghana (BoG) is finalizing a regulatory framework for cryptocurrency platforms and Virtual Asset Service Providers (VASPs). Governor Johnson Asiama stressed the importance of regulation amid the rise of digital financial technologies. The framework will align with anti-money laundering and financial stability mandates, ensuring robust oversight. Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting, Asiama emphasised the urgency for clear rules amid the rise of digital financial technologies. 'Crypto is like the air we breathe—you can't stop it. So let's regulate it properly,' he stated. 'We are working on a framework that aligns with our anti-money laundering and financial stability mandates.' Coordination with key institutions To ensure a robust and collaborative regulatory environment, the BoG has been in close consultation with the Financial Intelligence Centre (FIC) and the Ministry of Finance. The forthcoming regulations will establish clear licensing requirements, operational standards, and safeguards against abuse for all crypto-related entities operating in Ghana. Regulating, not restricting Governor Asiama was clear in stating that the central bank is not opposed to innovation, but rather committed to preserving financial integrity. 'Crypto is here. The question is how do we manage it, not whether to ban it,' he said. ' The Bank is not anti-innovation. We only seek to ensure that digital financial products do not undermine confidence in the monetary system or facilitate illicit transactions.' Ghana takes a leading role in Africa's crypto policy With this move, Ghana is positioning itself among a small but growing number of African nations proactively tackling the regulation of digital currencies. The new framework aims to balance oversight with flexibility, ensuring that the fintech and crypto sectors can continue to innovate within a safe and supervised environment.
Finextra
7 days ago
- Business
- Finextra
Clear Junction launches fiat rails for crypto firms with vIBAN service
Clear Junction, a specialist in global payments and banking infrastructure for regulated financial institutions, has extended access to its named virtual IBAN (vIBAN) services to licensed virtual asset service providers (VASPs) – a functionality previously only available to banks and electronic money institutions (EMIs). 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. A named vIBAN is a unique code assigned to an individual customer for sending and receiving payments, without creating a separate payment account. This approach enables full traceability of funds, streamlined reconciliation, enhanced AML and KYC processes, and greater institutional trust. By offering this capability to European and UK-licensed crypto asset providers, Clear Junction aims to strengthen the fiat infrastructure available to regulated crypto firms and help them overcome long-standing barriers to accessing reliable account services. It forms part of Clear Junction's broader strategy to bridge the fiat and digital asset ecosystems through enterprise-grade, compliance-focused infrastructure. As regulatory clarity improves across key markets – including the EU's Markets in Crypto-Assets (MiCA) framework and the UK's new crypto registration requirements – crypto companies are under growing pressure to meet higher standards of compliance, AML screening, and auditability. Yet many still face institutional gatekeeping and outdated banking systems that restrict access to essential fiat services, often forcing them to rely on high-friction workarounds or intermediaries. Clear Junction's named vIBANs solve these challenges by giving digital asset providers direct access to fiat settlement capabilities and customer-level account referencing. This unlocks a range of crypto-specific use cases, including me-to-me transfers, fiat-to-crypto conversions, and automated treasury operations. In turn, it boosts operational efficiency, reduces risk, and enables crypto-native institutions to deliver bank-like services on par with traditional fintechs and EMIs. Dima Kats, CEO and Founder of Clear Junction, commented: 'The virtual asset ecosystem has matured rapidly, but fiat infrastructure has often lagged behind. We're closing that gap, and this launch is another step toward normalising crypto within the global payments ecosystem. 'We've long understood that VASPs face an uphill battle accessing fiat services, even when they're fully licensed and compliant. This launch is about solving that pain point with a practical, scalable solution. By extending named vIBANs to digital asset providers, we're giving regulated crypto institutions the tools they need to scale responsibly, with full compliance and greater operational clarity.' Example use cases include: • Wallet operators assigning unique vIBANs to individual users, enabling fiat deposits/withdrawals with reference-free reconciliation • Crypto exchanges managing multiple jurisdictions and currency pairs with cleaner fund flows • OTC desks executing high-volume fiat-to-crypto conversions under tighter operational controls • Token issuers streamlining fiat treasury flows across ecosystems This service complements Clear Junction's broader digital asset offering, which includes: • Instant fiat deposits and withdrawals • EUR and GBP payment rails via SEPA and FPS • On/off-ramp solutions for fiat-to-crypto transactions • On-chain transfers via its stablecoin payment service supporting USDT and USDC on Ethereum, Solana, and Tron networks The expanded vIBAN service is backed by Clear Junction's deep regulatory expertise and technology platform purpose-built for regulated institutions. The group is one of the few UK-based entities licensed both as an EMI and a crypto asset service provider by the Financial Conduct Authority, uniquely positioning it to support the evolving needs of the digital asset sector. Founded in 2016, Clear Junction enables financial institutions to access accounts, vIBANs, payment networks, FX services, and e-wallets quickly, securely, and in full compliance with regulatory requirements. Its infrastructure is built to reduce time to market, expand access to new regions, and power faster, safer global payments.
Business Recorder
04-07-2025
- Business
- Business Recorder
FATF & Pak quest for cryptocurrency
Recognising the global shift toward digital finance, the government of Pakistan has recently initiated concrete steps to legalize cryptocurrency. This shift gained momentum following the Crypto Council's resolution to develop a comprehensive regulatory framework aligned with international standards. The decision comes at a time when the Financial Action Task Force (FATF), in its sixth targeted update published on 26 June 2025, has emphasized the urgent need for jurisdictions to implement robust Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) measures concerning Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). This FATF update serves as a pivotal guidepost for Pakistan as it endeavours to pose as a responsible participant in the global crypto ecosystem, echoing global expectations articulated in Recommendation 15 (R.15) and its interpretative note (INR.15), the bases for regulating this sector since 2019. FATF's latest report acknowledges progress made globally, including jurisdictions with materially significant VASP activity, those constituting approximately 98% of this market. The report reveals that 138 jurisdictions have been assessed under R.15 as of April 2025, of which only 1 jurisdiction is rated as fully compliant while 40 jurisdictions (29%) rated largely compliant, showing modest advancement from 2024. FATF's findings underline that despite significant regulatory developments, including Pakistan's recent legal and institutional overtures, fundamental implementation gaps remain. FATF highlights the inability of many jurisdictions to identify natural or legal persons conducting VASP activities, lack of enforcement against offshore entities, and significant challenges in implementing Travel Rule which mandates the sharing of sender and receiver information during VA transfers. This Travel Rule has been legislated in 85 of 117 jurisdictions as of 2025, yet enforcement remains weak. FATF particularly urges jurisdictions, including Pakistan, to formulate comprehensive risk assessments of VAs and VASPs. FATF's 2025 report shows that only 76 percent of jurisdictions have completed such assessments. Despite this, a critical shortcoming remains in the operationalization of supervisory frameworks. FATF calls for immediate actions such as licensing, risk-based supervision, and enforcement measures. In Pakistan's case, the regulatory trajectory must include legislation that addresses both domestic and offshore VASP activity, integrating preventive mechanisms to mitigate risks related to money laundering (ML), terrorist financing (TF), and proliferation financing (PF). The report also sheds light on emergent and growing risks. Democratic People's Republic of Korea's (DPRK) record-setting $1.46 billion theft from the VASP ByBit in 2025 and the subsequent laundering of funds through 125,000 Ethereum wallets exemplifies the scope of cross-border cyber exploitation. Only 3.8% of these funds have been recovered, underlining the urgent need for enhanced asset recovery mechanisms. FATF's report also reveals that US$51 billion in illicit activity from fraud and scams was conducted through virtual assets in 2024, and much of it involved stablecoins, which have grown to dominate the volume of on-chain illicit transactions. FATF identifies the use of USDT on the Tron network as a preferred channel for criminal actors due to its transaction speed and anonymity-enhancing capabilities. FATF's recommendations for public authorities include five primary priorities. Firstly, jurisdictions must finalize ML/TF/PF risk assessments and implement mitigation strategies. Secondly, jurisdictions must either fully regulate or clearly prohibit VAs and VASPs—with a caution that prohibition is often difficult to enforce effectively. Thirdly, regulatory frameworks must include licensing and identification mechanisms, including offshore VASPs. Fourthly, Travel Rule should be legislated and operationalized with urgency. Lastly, regulators must monitor and address risks arising from stablecoins, DeFi arrangements, and fraud ecosystems involving AI-enabled frauds and unregulated wallets. For the private sector, FATF calls on VASPs to improve risk assessment capabilities, mitigate stablecoin-specific threats, and adopt measures that respond to scams such as address poisoning and pig butchering. FATF also outlines its roadmap for the Virtual Assets Contact Group (VACG), which includes preparing targeted reports on DeFi, stablecoins, and offshore VASPs between October 2025 and June 2026. These reports will guide future regulatory calibrations. The VACG is also tasked with maintaining the updated public table of jurisdictions with materially important VASP activity, which now includes nine additional non-FATF jurisdictions for 2025. FATF urges jurisdictions to designate unregulated VASPs as higher-risk and encourages adoption of 2021 updated guidance on a risk-based approach. The current implementation status for Recommendation 15 shows improvement yet persistent challenges. Of the 138 jurisdictions assessed as of April 2025, 29% are rated largely compliant (up from 25% in 2024), 49% are partially compliant, and 21% remain non-compliant. Only one jurisdiction globally is rated fully compliant. Within the Travel Rule domain, while 73% of jurisdictions have passed relevant legislation, only 41% have operationalized it through enforcement or supervision. FATF notes that the lack of coordination between jurisdictions remains a significant vulnerability given the borderless nature of VAs. FATF's annexed table reveals that countries like the Bahamas, Malta, and Luxembourg have achieved considerable implementation success. In contrast, countries such as Pakistan, which are in the process of formalizing legal and institutional measures, must accelerate their alignment with the FATF's standards. As Pakistan advances toward regulating its crypto landscape, learning from these jurisdictions' approaches especially around licensing, risk assessment, and enforcement will be essential. Pakistan must address three immediate challenges for way forward. The first is technical: establishing clear and enforceable definitions for VAs and VASPs in domestic law that harmonize with FATF's interpretive note. The second is regulatory: building a risk-based framework that includes licensing requirements, identifies legal and natural persons operating VASPs, and implements the Travel Rule with enforceable supervision. The third is institutional: enhancing the capacity of regulators, law enforcement, and financial intelligence units to monitor, investigate, and prosecute crimes involving virtual assets. Pakistan should also prioritize public-private partnerships with blockchain analytics firms, adopt cross-border cooperation protocols, and develop public registries for licensed VASPs. FATF's support for technical assistance, as expressed in its engagement with VACG and Global Network, offers a valuable window for Pakistan to request targeted help in closing compliance gaps. The government's decision to legalize cryptocurrency is timely and strategically aligned with FATF's global roadmap. However, without a technically sound and enforceable regulatory regime grounded in FATF's Recommendation 15, Pakistan risks falling short of global compliance standards. The country must now move swiftly to codify regulations, build institutional capacity, and participate in the international supervisory ecosystem for virtual assets. This will not only ensure FATF compliance but also position Pakistan as a credible and secure player in the global digital economy. Copyright Business Recorder, 2025
Coin Geek
25-06-2025
- Business
- Coin Geek
PH laws, gov't support drive blockchain adoption: report
Getting your Trinity Audio player ready... The Philippines is establishing itself as a developing center for blockchain innovation, a trajectory shaped by responsive regulatory actions and government support. This combined effort aims to create an enabling environment for blockchain to thrive, fostering digital transformation and economic inclusion. According to the 'Philippine Blockchain Report 2025' released by the Blockchain Council of the Philippines (BCP), the country continues with its aspiration to become a regional leader of the technology. The report provides a data-driven overview of the nation's blockchain landscape. Members of the Blockchain Council of the Philippines during the launch of the Philippine Blockchain Report 2025 at the SMX Convention Center in Pasay City, Philippines. Establishing regulatory foundations According to the report, Philippine regulators have established initial frameworks to guide blockchain adoption. These frameworks strike a balance between innovation, consumer protection, and market integrity. The Bangko Sentral ng Pilipinas (BSP), the nation's central bank, plays a central role in regulating virtual assets. In 2017, BSP Circular No. 944 recognized digital currencies as a valid payment method. This was followed by Circular No. 1108 in 2021, which governs Virtual Asset Service Providers (VASPs), emphasizing anti-money laundering (AML) and information technology (IT) security requirements. A three-year moratorium on new Non-Bank VASP applications was put in place starting in September 2022 and is expected to continue until September 2025. The BSP also established its Regulatory Sandbox Framework (Circular No. 1153) for emerging technologies, including Distributed Ledger Technology (DLT). An example includes receiving BSP approval to pilot its Philippine Peso-backed stablecoin (PHPC) within this sandbox, which is now in its exit stage. The BSP is also actively pursuing central bank digital currency (CBDC) initiatives, such as Project CBDCPh, a wholesale CBDC pilot to test interbank transactions, and Project Agila, which completed its testing phase in December 2024. A medium-term roadmap for wholesale CBDC development is anticipated for 2025, with the goal of enhancing payment systems and financial stability. The report also stated that the Securities and Exchange Commission (SEC) recognizes blockchain's capacity to streamline financial services, enhance digital payments, strengthen regulatory compliance, and drive financial inclusion. The SEC established the PhiliFinTech Innovation Office and launched the SEC StratBox, a thematic sandbox framework for Crypto-Asset Service Providers (CASPs), to support innovation in a controlled environment while managing risks. The SEC has also drafted and published comprehensive Rules on Crypto-Asset Service Providers (CASP) and CASP Guidelines, designed to provide legal clarity for crypto-asset activities, promote responsible market practices, and align with international standards. The SEC expects to launch a derivatives market in the Philippines that may accommodate crypto derivatives. Moreover, the report said that the Special Economic Zones contribute to attracting blockchain businesses. The Cagayan Economic Zone Authority (CEZA) introduced rules, including the Financial Technology Solutions and Offshore Virtual Currency Business Rules and Regulations (FTSOVCBRR) and the Digital Asset Token Offering (DATO) Rules, which were updated and integrated in 2024 with the Offshore Financial Technology (OFT) Licensing Rules and Regulations (OFTLRR). These frameworks support offshore crypto-exchange activities and token offerings, with CEZA's 'Crypto Valley of Asia' attracting blockchain businesses. The Authority of the Freeport Area of Bataan (AFAB) offers the Offshore Digital Asset Licence (ODAL), allowing blockchain-based businesses to operate within a regulated framework, and has a direct legislative mandate to cultivate emerging industries. Regarding consumer protection, the Financial Products and Services Consumer Protection Act (FCPA) and the Anti-Financial Account Scamming Act (AFASA) extend their coverage to blockchain-based financial products and accounts, imposing consumer protection standards and responsibilities on service providers. Government initiatives and projects Beyond direct regulation, government agencies are actively integrating blockchain into public services, demonstrating practical applications and commitment to the technology. The Department of Information and Communications Technology (DICT) is committed to adopting emerging technologies, such as blockchain, for sustainable and inclusive economic growth. It launched eGOVchain, a blockchain-based government project aimed at improving transparency, security, and efficiency in public services, and plans to implement eGovEncrypt to secure critical government data. The Department of Budget and Management (DBM) launched Project Marissa, a blockchain-based initiative aimed at enhancing the security of budget-related documents, utilizing BayaniChain's hybrid blockchain technology. It also utilizes Prismo to add security to critical budget documents, such as Special Allotment Release Orders (SAROs). The Bureau of the Treasury (BTr), in partnership with PDAX, issued the nation's first tokenized treasury bonds in 2023, demonstrating the government's commitment to using blockchain for transparent and efficient public finance. The BTr is also testing the 'GBonds' feature with GCash to broaden Filipino investors' access to government investments. The Maritime Industry Authority (MARINA) has introduced the Blockchain-Enabled System for Transactions (BEST) to enhance maritime services by enabling the real-time processing of applications and online payments and ensuring document authenticity, thereby reducing fraud and improving transparency. Digital transformation is a national goal that calls for collaboration among the government, private organizations such as the Gobi-Core Philippine Fund, Gorriceta Africa Cauton & Saavedra, and the BCP, as well as academic institutions. Events like the Philippine Blockchain Week have become international gatherings, attracting global experts, investors, and innovators. Impact on adoption and growth Source: Philippine Blockchain Report 2025 These concerted regulatory and governmental efforts have affected the adoption and growth of blockchain in the Philippines. Trust and confidence building: Clear regulations and robust consumer protection measures are crucial in fostering public trust and confidence in blockchain technology. While a large portion of Filipinos (70%) remain unfamiliar with blockchain, a high proportion (74%) expressed confidence in its security, partly due to the accessibility and perceived reliability of centralized exchanges like and PDAX. The pandemic played a role in shifting perception, with more people recognizing blockchain's security, accessibility, and practical applications. Financial inclusion and remittances: Blockchain initiatives, particularly from the BSP (e.g., Project i2i and CBDCs, are designed to enhance payment systems and expand financial access, especially for the large unbanked population and overseas Filipino workers (OFWs), who rely heavily on remittances. Blockchain provides a more cost-effective and efficient means of sending money compared to traditional systems. Diversification of use cases: While digital currency (especially for trading, payments, and gaming) remains the most recognized application, government projects and regulatory foundations are encouraging the expansion of blockchain use cases beyond digital assets and non-fungible tokens (NFTs). The rise of Play-to-Earn (P2E) gaming, with many Filipinos becoming 'Metaverse Filipino Workers' (MFWs), has served as an entry point into Web3 for the population, especially during the lockdown. Challenges and outlook Despite progress, the report said challenges persist, including a knowledge gap among the public, limitations in digital infrastructure, and funding constraints for early-stage blockchain ventures. Eighty-five percent of respondents have no direct connection to blockchain in daily life, and 70% are unfamiliar with the technology altogether. This indicates that awareness and understanding remain hurdles to broader adoption. The report said that the Philippines' regulatory landscape is expected to continue evolving towards a more precise delineation between regulatory bodies, such as the BSP and SEC, a more granular licensing regime, and stricter compliance and oversight as blockchain adoption expands. Continued investment in education and government coordination is crucial for fostering trust, driving innovation, and promoting responsible blockchain use to support long-term growth. The report added that the government may explore and implement blockchain technology across various sectors, leveraging regulatory sandboxes to assess viability and impact. By fostering collaboration and leveraging its tech-savvy population, the Philippines aims to solidify its position as a player in the global blockchain ecosystem, unlocking its full potential for national progress. Watch: The Philippines is moving toward blockchain-enabled tech title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
