Indian crypto exchanges freeze suspicious accounts as bitcoin crosses $40,000

MUMBAI: Cryptocurrency exchanges in India have stepped up their efforts to detect suspicious activities and clamp down on ‘pump and dump’ schemes, as bitcoin breached the $40,000 mark yesterday. CoinDCX, a large cryptocurrency exchange said that it has frozen 4 accounts which were used for artificially pushing up the price of smaller cryptos in a bid to lure retail investors to enter at inflated prices.

India lacks any formal KYC rules or exchange regulations for cryptocurrency and hence exchanges have devised their own rules. The lack of regulation comes even as the US Financial Crimes Enforcement Network (FINCEN) has proposed compulsory KYC norms for transfers of cryptocurrency to non-custodial wallets above $3,000.