Several Indian exchanges that had not built TDS infrastructure suspended trading

Constrained

Case description

India's Finance Ministry introduced a 30% flat tax on cryptocurrency gains in April 2022 along with a 1% TDS (tax deducted at source) on every transaction. Several Indian exchanges that had not built TDS infrastructure suspended trading temporarily. Indian crypto holders who attempted to access or move funds during this period encountered exchange-level blocks imposed for regulatory compliance reasons. The abrupt policy shift caused custody access constraints that were regulatory rather than technical in nature.

Custody context

Stress condition	Legal or authority constraint
Custody system	Exchange custody
Outcome	Constrained
Documentation	Unknown
Year observed	2022
Country	India

Structural dependencies observed

Legal process requiredInstitutional cooperation required

What this illustrates

Before anyone could access the funds, a legal process had to be completed first. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.

Outcome interpretation

Access remained possible, but only with delay, dependence, or significant difficulty.

Source

Publicly Reported

Evidence type

News article

Evidence link

https://www.coindesk.com/markets/2022/07/15/the-fall-of-celsius-network-a-timeline-of-the-crypto-lenders-descent-into-insolvency

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Framework references

Where Bitcoin Custody Intersects Legal and Fiduciary Authority

Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.

Professional Scope Boundary Matrix

What each professional or product covers, what they do not, and where gaps form between them.

The Independent Assessment Layer in Bitcoin Custody

How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.