The Indian government has reportedly decided to ban nine cryptocurrency exchange websites, citing concerns over money laundering, tax evasion and cybercrime.
The move comes amid a global crackdown on the crypto industry, as regulators and lawmakers seek to impose more oversight and control over the volatile and unregulated sector.
According to sources quoted by the Economic Times, the Ministry of Electronics and Information Technology (MeitY) has issued a notice to the Department of Telecommunications (DoT) to block access to the following websites:
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- Binance.com
- WazirX.com
- CoinDCX.com
- ZebPay.com
- Unocoin.com
- Bitbns.com
- CoinSwitch.co
- Giottus.com
- Pocketbits.in
The notice reportedly states that these websites are “engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”.
It also claims that these websites are facilitating transactions in cryptocurrencies that are “not legal tender in India” and are “used for illicit and illegal activities in anonymous/pseudonymous systems that encourage money laundering and other criminal activities”.
The notice further alleges that these websites are violating the provisions of the Information Technology Act, 2000, the Prevention of Money Laundering Act, 2002, the Income Tax Act, 1961, and the Foreign Exchange Management Act, 1999.
The ban is expected to affect millions of crypto investors and traders in India, who have been using these platforms to buy, sell and store various digital assets. The crypto industry in India has been facing uncertainty and confusion for years, as the government has repeatedly flip-flopped on its stance towards cryptocurrencies.
In 2018, the Reserve Bank of India (RBI) issued a circular that prohibited banks and other financial institutions from providing services to crypto-related entities. However, in 2020, the Supreme Court of India quashed the circular, ruling that it was unconstitutional and disproportionate.
Since then, the crypto industry has witnessed a surge in growth and adoption, as more Indians have embraced cryptocurrencies as an alternative asset class and a hedge against inflation.
However, the government has also been mulling over a draft bill that proposes to ban all private cryptocurrencies in India, except for a digital rupee issued by the RBI. The bill, which was first introduced in 2019, has not been tabled in the parliament yet, but has sparked fear and anxiety among the crypto community. The government has also not clarified its definition of “private cryptocurrencies” and whether it would include popular coins like Bitcoin and Ethereum.
The latest move to block access to crypto exchange websites is seen as another attempt by the government to curb the crypto industry and discourage its use among Indians. However, some experts and industry players have argued that such a ban would be ineffective and counterproductive, as it would only drive crypto users to more decentralized and peer-to-peer platforms that are harder to regulate and monitor.
They have also urged the government to adopt a more progressive and consultative approach towards cryptocurrencies, and to recognize their potential benefits for innovation, financial inclusion and economic growth. They have called for a clear and comprehensive legal framework that would protect the rights and interests of crypto users, while also addressing the legitimate concerns of the authorities.
PancakeSwap proposes to reduce CAKE token supply by 300M
In a recent blog post, PancakeSwap, the leading decentralized exchange (DEX) on the Binance Smart Chain (BSC), announced its proposal to reduce the total supply of its native token, CAKE, by 300 million. The proposal, which is subject to a community vote, aims to address the inflationary pressure on CAKE and increase its long-term value and sustainability.
According to the blog post, the current total supply of CAKE is 1.6 billion, with a maximum supply of 1.8 billion. However, due to the high emission rate of CAKE, which is currently 40 CAKE per block, the maximum supply will be reached in less than a year. This poses a challenge for the future growth and development of PancakeSwap, as well as the security and stability of the platform.
As of December 27th, 2023, the live price of CAKE is $3.400887 with a market cap of $905.25M USD. The current total supply of CAKE is 1.6 billion, with a maximum supply of 1.8 billion. However, due to the high emission rate of CAKE, which is currently 40 CAKE per block, the maximum supply will be reached in less than a year. This poses a challenge for the future growth and development of PancakeSwap, as well as the security and stability of the platform.
To solve this problem, PancakeSwap proposes to burn 300 million CAKE from the treasury, which currently holds about 400 million CAKE. This would reduce the total supply to 1.3 billion and the maximum supply to 1.5 billion. The proposal also suggests lowering the emission rate of CAKE to 25 CAKE per block, which would extend the lifespan of the token by more than two years.
The blog post claims that this proposal would benefit both the platform and the token holders in several ways. First, it would reduce the inflation rate of CAKE and increase its scarcity and demand. Second, it would create more room for future growth and innovation on PancakeSwap, as well as more incentives for liquidity providers and stakers. Third, it would enhance the security and decentralization of the platform by reducing the influence of the treasury and increasing the participation of the community.
The proposal is open for discussion and feedback from the PancakeSwap community until January 10th, 2024. After that, a snapshot vote will be held to determine whether to implement the proposal or not. The blog post encourages all CAKE holders to voice their opinions and vote on this important matter.
PancakeSwap is one of the most popular and successful DEXes on BSC, with over $8 billion in total value locked (TVL) and over 2 million daily transactions. It offers various features and services, such as swapping, farming, staking, lottery, prediction market, NFTs, and more. CAKE is the governance and utility token of PancakeSwap, which can be used to vote on proposals, earn rewards, access exclusive features, and participate in various activities on the platform.