Dubai homes built on cryptos a legal trap

economictimes.indiatimes.com:

Such transactions, though perfectly kosher in Dubai, which wants to position itself as the world's crypto capital, can come back to haunt the property owners, most of whom are unmindful of the regulatory and legal pitfalls ahead. Little do they realise that copies of their passports, those of their family members or close relatives in whose name the property is registered could someday fall into the hands of the Indian Income Tax (I-T) Department and Directorate of Enforcement (ED). With the Reserve Bank of India (RBI) imposing a shadow ban on cryptos and the finance ministry almost taxing the asset to death, many high net-worth individuals (HNI) investors have moved their cryptos to Dubai and other financial centres.

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In the process, many may have committed, perhaps unwittingly, multiple offences. First, the transfer of cryptos from the private wallet of a resident Indian to the wallet of a real estate company in Dubai (or an intermediary hired by the developer to convert the cryptos) is an irregular cross-border transaction and a violation of the Foreign Exchange Management Act (FEMA). Second, buying a property abroad without a matching fund remittance through banking channels is against RBI regulations. Understanding Laws of Both Nations Third, an assessee can be pulled up under the black money law for non-disclosure of the (Dubai) property in the annual tax return. Lastly, non-payment of tax on