Some wealthy Indian investors, intending to escape a hostile regime at home, have moved their crypto content to wallets with exchanges and in safes abroad.

Cryptos purchased with the local currency are moved to an open wallet with an exchange abroad, there is a cross-border movement of funds under the guise of the cryptocurrency. Intending not to disclose their transfer, the investors transferred their coins overseas. However, this act can be taken against the Directorate of Law Enforcement using the data obtained from the exchanges. So, any significant crypto movement is likely to catch their attention.

Moreover, the non-disclosure of a “foreign asset” could put these investors on the wrong side of the law on black money and taxation with a tough law in force in 2015 that can be used to impose criminal sanctions.

However, Ashish Mehta, a partner at the law firm Khaitan et Co., explained that “Declaring Crypto Assets is fraught with pitfalls; there are several aspects such as the identification of the location, the situses that are relevant.