Consumer Rights Body Calls For Investigation In NFT Platform Rario

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Consumer Online Foundation, a consumer rights body, has asked the Union Minister of Finance Nirmala Sitharaman to investigate the Indian NFT platform Rario over alleged violations of the Prevention of Money Laundering Act (PMLA), 2002. The industry body has reportedly written to the finance minister asking for an investigation into the startup’s business activities and compliance with PMLA and taxation laws concerning virtual digital assets (VDAs) and cryptocurrency. The foundation’s managing trustee alleged that Rario violated applicable taxation provisions for VDAs and cryptocurrency in India, misled customers by adopting unethical marketing practices, and its KYC processes were tantamount to a violation of India’s PMLA laws. In response, Rario stated that it adheres to all KYC requirements and fully complies with applicable laws, including taxation. Rario has been in the news lately, as it is also involved in a legal dispute with Web3 fantasy platform Striker. Rario, the NFT startup, gained significant attention when it raised $120 million in funding last year, led by Dream Capital, the venture capital arm of Dream Sports, the parent company of gaming unicorn Dream11. Rario’s investors also include Alpha Wave, Animoca Brands, Presight Capital, Kingsway Capital, and Sachin Tendulkar.Rario is an NFT platform that allows fans to buy, sell and trade digital collectibles related to cricket through fiat-only mediums such as credit cards, debit cards, and bank transfers. The platform claims to have exclusive partnerships with multiple cricket boards and tournaments, and it boasts a roster of more than 900 international cricketers.