India’s monetary watchdogs have reportedly uncovered a troubling pattern within the cryptocurrency sector, the place consumer deposits on exchanges are being redeployed with out investor data. Based on the earnings tax division’s investigation, platforms routinely use buyer tokens for lending, staking, or liquidity enhancement, retaining income whereas granting customers solely the proper to promote their holdings. Officers confirmed that phrases and circumstances usually enable such practices, however buyers stay unaware when their particular property are being rehypothecated or commingled. Specialists warn that this mirrors dangers seen in international failures like FTX, the place misuse of consumer funds triggered huge losses. Enforcement businesses in India admit their incapability to intervene, as no express regulatory framework restricts exchanges from dealing with deposits this manner.
India Flags Hidden Crypto Practices That Mirror Global Exchange Failures
