India Dey Warn Hidden Crypto Exchange Risk Dem Dey Show Global Failures
India Finance Ministry and parliamentary committee don warn say domestic crypto exchanges fit dey put users money for unaudited businesses and high-risk loans, just like how global platforms like FTX and Celsius fail before. The report talk say at least 20 companies dey keep customer deposits for offshore wallets and dey do margin trading wey no clear, plus dem no dey do proper disclosure or separate assets. Lack of transparency and weak compliance dey raise red flags for investor protection and market stability. To reduce risk, the committee talk say make on-chain audits compulsory, public reserve dey disclosed, and make India Digital Rupee framework roll out faster. Industry experts warn say if these hidden practices no stop, e fit cause liquidity crisis like FTX collapse for 2022, wey go shake confidence for India crypto market.
Bearish
Hidden fund diversion and opaque practices wey dey happen for Indian crypto exchanges dey increase systemic risk and dey make market confidence go down. Similar kind pattern happen before the 2022 FTX and Celsius collapse wey cause big sell-offs and liquidity wahala. Lack of clear asset segregation and regulatory oversight fit make traders dey reduce risk for their positions, wey fit lead to short-term price decline for big cryptocurrencies. But for long term, stronger auditing requirements and reserve disclosure fit restore trust and fit stabilize market. Until reforms come, uncertainty go keep people cautious and trading volumes go low.