What’s Your New Year's Resolution?

Introduction

In the labyrinthine world of digital currencies, a new chapter unfolds as India intensifies its scrutiny over the ethereal realm of offshore cryptocurrency exchanges. With nuance and determination that virtually mirrors the Byzantine complexities of the very currencies they seek to regulate, Indian authorities embark on a course of stringent oversight, bringing to the fore an ever-evolving narrative of control and compliance in the fintech sector. The government's latest manoeuvre—a directive to Apple Inc. to excise the apps of certain platforms, including the colossus Binance, from its App Store in India—signals a crescendo in the nation's efforts to rein in the unbridled digital bazaar that had hitherto thrived in a semi-autonomous expanse of cyberspace.

The directive, with ramifications as significant and intricate as the cryptographic algorithms that underpin the blockchain, stems from the Ministry of Electronics and Information Technology, which has cast eight exchanges, including Bitfinex, HTX, and Kucoin, into the shadows, rendering their apps as elusive as the Higgs boson in the vast App Store universe. The movement of these exchanges from visibility to obscurity in the digital storefront is cloaked in secrecy, with sources privy to this development remaining cloaked in anonymity, their identities as guarded as the cryptographic keys that secure blockchain transactions.

The Contention 

This escalation, however, did not manifest from the vacuum of the ether; it is the culmination of a series of precipitating actions that began unfolding on December 28th, when the Indian authorities unfurled a net over nine exchanges, ensnaring them with suspicions of malfeasance. The spectre of inaccessible funds, a byproduct of this entanglement, has since haunted Indian crypto traders, prompting a migration of deposits to local exchanges that operate within the nation's regulatory framework—a fortress against the uncertainties of the offshore crypto tempest.

The extent of the authorities' reach manifests further, beckoning Alphabet Inc.'s Google to follow in Apple's footsteps. Yet, in a display of the unpredictable nature of enforcement, the Google Play Store in India still played host to the very apps that Apple's digital Eden had forsaken as of a nondescript Wednesday afternoon, marked by the relentless march of time. The triad of power-brokers—Apple, Google, and India's technology ministry—has maintained a stance as enigmatic as the Sphinx, their communications as impenetrable as the vaults that secure the nation's precious monetary reserves.

Compounding the tightening of this digital noose, the Financial Intelligence Unit of India, a sentinel ever vigilant at the gates of financial propriety, unfurled a compliance show-cause notice to the nine offshore platforms, an ultimatum demanding they justify their elusive presence in Indian cyberspace. The FIU's decree echoed with clarity amidst the cacophony of regulatory overtures: these digital entities were tethered to operations sequestered in the shadows, skirting the reach of India's anti-money laundering edicts, their websites lingering in cyberspace like forbidden fruit, tantalisingly within reach yet potentially laced with the cyanide of non-compliance.

In this chaotic tableau of constraint and control, a glimmer of presence remains—only Bitstamp has managed to brave the regulatory storm, maintaining its presence on the Indian App Store, a lone beacon amid the turbulent sea of regimentation. Kraken, another leviathan of crypto depths, presented only its Pro version to the Indian connoisseurs of the digital marketplace. An aura of silence envelops industry giants such as Binance, Bitfinex, and KuCoin, their absence forming a void as profound as the dark side of the moon in the consciousness of Indian users. HTX, formerly known as Huobi, has announced a departure from Indian operations with the detached finality of a distant celestial body, cold and indifferent to the gravitational pull of India's regulatory orbit.

Compliances

In compliance with the provisions of the Money Laundering Act (PMLA) 2002 and the recent uproar on crypto assessment apps, Apple store finally removed these apps namely Binance and Kucoin from the store after receiving show cause notice. The alleged illegal operation and failure to comply with existing money laundering laws are major reasons for their removal. 

The Indian Narrative 

The overarching narrative of India's embrace of rigid oversight aligns with a broader global paradigm shift, where digital financial assets are increasingly subjected to the same degree of scrutiny as their physical analogues. The persistence in imposing anti-money laundering provisions upon the crypto sector reflects this shift, with India positioning its regulatory lens in alignment with the stars of international accountability. The preceding year bore witness to seismic shifts as Indian authorities imposed a tax upon crypto transactions, a move that precipitated a downfall in trading volumes, reminiscent of Icarus's fateful flight—hubris personified as his waxen appendages succumbed to the unrelenting kiss of the sun.

On a local scale, trading powerhouses lament the imposition of a 1% levy, colloquially known as Tax Deducted at Source. This fiscal shackle drove an exodus of Indian crypto traders into the waiting, seemingly benevolent arms of offshore financial Edens, absolved of such taxational rites. As Sumit Gupta, CEO of CoinDCX, recounted, this fiscal migration witnessed the haemorrhaging of revenue. His estimation that a staggering 95% of trading volume abandoned local shores for the tranquil harbours of offshore havens punctuates the magnitude of this phenomenon.

Conclusion 

Ultimately, the story of India's proactive clampdown on offshore crypto exchanges resembles a meticulously woven tapestry of regulatory ardour, financial prudence, and the inexorable progression towards a future where digital incarnations mirror the scrutinised tangibility of physical assets. It is a saga delineating a nation's valiant navigation through the tempestuous, cryptic waters of cryptocurrency, helming its ship with unwavering determination, with eyes keenly trained on the farthest reaches of the horizon. Here, amidst the fusion of digital and corporeal realms, India charts its destiny, setting its sails towards an inextricably linked future that promises to shape the contour of the global financial landscape.

References 

• https://www.business-standard.com/markets/cryptocurrency/govt-escalates-clampdown-on-offshore-crypto-venues-like-binance-report-124011000586_1.html
• https://www.cnbctv18.com/technology/india-escalates-clampdown-on-offshore-crypto-exchanges-like-binance-18763111.htm
• https://economictimes.indiatimes.com/tech/technology/centre-blocks-web-platforms-of-offshore-crypto-apps-binance-kucoin-and-others/articleshow/106783697.cms?from=mdr

Artificial Intelligence (AI) provides a varied range of services and continues to catch intrigue and experimentation. It has altered how we create and consume content. Specific prompts can now be used to create desired images enhancing experiences of storytelling and even education. However, as this content can influence public perception, its potential to cause misinformation must be noted as well. The realistic nature of the images can make it hard to discern as artificially generated by the untrained eye. As AI operates by analysing the data it was trained on previously to deliver, the lack of contextual knowledge and human biases (while framing prompts) also come into play. The stakes are higher whilst dabbling with subjects such as history, as there is a fine line between the creation of content with the intent of mere entertainment and the spread of misinformation owing to biases and lack of veracity left unchecked. AI-generated images enhance storytelling but can also spread misinformation, especially in historical contexts. For instance, an AI-generated image of London during the Black Death might include inaccurate details, misleading viewers about the past.

The Rise of AI-Generated Historical Images as Entertainment

Recently, generated images and videos of various historical instances along with the point of view of the people present have been floating all over the internet. Some of them include the streets of London during the Black Death in the 1300s in England, the eruption of Mount Vesuvius at Pompeii etc. Hogne and Dan, two creators who operate accounts named POV Lab and Time Traveller POV on TikTok state that they create such videos as they feel that seeing the past through a first-person perspective is an interesting way to bring history back to life while highlighting the cool parts, helping the audience learn something new. Mostly sensationalised for visual impact and storytelling, such content has been called out by historians for inconsistencies with respect to details particular of the time. Presently, artists admit to their creations being inaccurate, reasoning them to be more of an artistic interpretation than fact-checked documentaries. 

It is important to note that AI models may inaccurately depict objects (issues with lateral inversion), people(anatomical implausibilities), or scenes due to "present-ist" bias. As noted by Lauren Tilton, an associate professor of digital humanities at the University of Richmond, many AI models primarily rely on data from the last 15 years, making them prone to modern-day distortions especially when analysing and creating historical content. The idea is to spark interest rather than replace genuine historical facts while it is assumed that engagement with these images and videos is partly a product of the fascination with upcoming AI tools. Apart from this, there are also chatbots like Hello History and Charater.ai which enable simulations of interacting with historical figures that have piqued curiosity.

Although it makes for an interesting perspective, one cannot ignore that our inherent biases play a role in how we perceive the information presented. Dangerous consequences include feeding into conspiracy theories and the erasure of facts as information is geared particularly toward garnering attention and providing entertainment. Furthermore, exposure of such content to an impressionable audience with a lesser attention span increases the gravity of the matter. In such cases, information regarding the sources used for creation becomes an important factor.

Acknowledging the risks posed by AI-generated images and their susceptibility to create misinformation, the Government of Spain has taken a step in regulating the AI content created. It has passed a bill (for regulating AI-Generated content) that mandates the labelling of AI-generated images and failure to do so would warrant massive fines (up to $38 million or 7% of turnover on companies). The idea is to ensure that content creators label their content which would help to spot images that are artificially created from those that are not.

The Way Forward: Navigating AI and Misinformation

While AI-generated images make for exciting possibilities for storytelling and enabling intrigue, their potential to spread misinformation should not be overlooked. To address these challenges, certain measures should be encouraged.

1. Media Literacy and Awareness – In this day and age critical thinking and media literacy among consumers of content is imperative. Awareness, understanding, and access to tools that aid in detecting AI-generated content can prove to be helpful.
2. AI Transparency and Labeling – Implementing regulations similar to Spain’s bill on labelling content could be a guiding crutch for people who have yet to learn to tell apart AI-generated content from others.
3. Ethical AI Development – AI developers must prioritize ethical considerations in training using diverse and historically accurate datasets and sources which would minimise biases.

As AI continues to evolve, balancing innovation with responsibility is essential. By taking proactive measures in the early stages, we can harness AI's potential while safeguarding the integrity and trust of the sources while generating images.

References:

• https://www.npr.org/2023/06/07/1180768459/how-to-identify-ai-generated-deepfake-images
• https://www.nbcnews.com/tech/tech-news/ai-image-misinformation-surged-google-research-finds-rcna154333
• https://www.bbc.com/news/articles/cy87076pdw3o
• https://newskarnataka.com/technology/government-releases-guide-to-help-citizens-identify-ai-generated-images/21052024/
• https://www.technologyreview.com/2023/04/11/1071104/ai-helping-historians-analyze-past/
• https://www.psypost.org/ai-models-struggle-with-expert-level-global-history-knowledge/
• https://www.youtube.com/watch?v=M65IYIWlqes&t=2597s
• https://www.vice.com/en/article/people-are-creating-records-of-fake-historical-events-using-ai/?utm_source=chatgpt.com
• https://www.reuters.com/technology/artificial-intelligence/spain-impose-massive-fines-not-labelling-ai-generated-content-2025-03-11/?utm_source=chatgpt.com
• https://www.theguardian.com/film/2024/sep/13/documentary-ai-guidelines?utm_source=chatgpt.com

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Introduction

The role of ‘Small and Medium Enterprises’ (SMEs) in the economic and social development of the country is well established. The SME sector is often driven by individual creativity and innovation. With its contribution at  8% of the country’s GDP, and 45% of the manufactured output and 40% of its exports, SMEs provide employment to about 60 million persons through over 26 million enterprises producing over six thousand products. 

It would be an understatement to say that the SMEs sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services produced and the levels of technology employed. With the SME sector booming across the country, these enterprises are contributing significantly to local, state, regional and national growth and feeding into India’s objectives of inclusive, sustainable development. 

As the digital economy expands, SMEs cannot be left behind and must integrate online to be able to grow and prosper. This development is not without its risks and cybersecurity concerns and digital threats like misinformation are fast becoming a pressing pain point for the SME sector. The unique challenge posed to SMEs by cyber threats is that while the negative consequences of digital risks are just as damaging for the SMEs as they are for larger industries, the former’s ability to counter these threats is not at par with the latter, owing to the limited nature of resources at their disposal. The rapid development of emerging technologies like artificial intelligence makes it easier for malicious actors to develop bots, deepfakes, or other forms of manipulated content that can steer customers away from small businesses and the consequences can be devastating. 

Misinformation is the sharing of inaccurate and misleading information, and the act can be both deliberate and unintentional. Malicious actors can use fake reviews, rumours, or false images to promote negative content or create backlash against a business’ brand and reputation. For a fledgling or growing enterprise, its credibility is a critical asset and any threat to the same is as much a cause for concern as any other operational hindrance. 

Relationship Building to Counter Misinformation

We live in a world that is dominated by brands. A brand should ideally inspire trust. It is the single most powerful and unifying characteristic that embodies an organisation's culture and values and once well-established, can create incremental value. Businesses report industry rumours where misinformation resulted in the devaluation of a product, sowing mistrust among customers, and negatively impacting the companies’ revenue. Mitigating strategies to counter these digital downsides can include implementing greater due diligence and basic cyber hygiene practices, like two-factor or multi-factor authentication, as well as open communication of one’s experiences in the larger professional and business networks. 

The loss of customer trust can be fatal for a business, and for an SME, the access to the scale of digital and other resources required to restore reputations may simply not be a feasible option. Creating your brand story is not just the selling pitch you give to customers and investors, but is also about larger qualitative factors such as your own motivation for starting the enterprise or the emotional connection your audience base enjoys with your organisation. The brand story is a mosaic of multiple tangible and intangible elements that all come together to determine how the brand is perceived by its various stakeholders. Building a compelling and fortified brand story which resonates deeply with people is an important step in developing a robust reputation. It can help innoculate against several degrees of misinformation and malicious attempts and ensure that customers continue to place their faith in the brand despite attempts to hurt this dynamic.

Engaging with the target audience, ie, the customer base is part of an effective marketing tool and misinformation inoculation strategy. SMEs should also continuously assess their strategies, adapt to market changes, and remain agile in their approach to stay competitive and relevant in today's dynamic business environment. These strategies will lead to greater customer engagement through the means of feedback, reviews and surveys which help in building trust and loyalty. Innovative and dynamic customer service engages the target audience and helps in staying in the competition and being relevant.

Crisis Management and Response

Having a crisis management strategy is an important practice for all SMEs and should be mandated for better policy implementation. Businesses need greater due diligence and basic cyber hygiene practices, like two-factor authentication, essential compliances, strong password protocols, transparent disclosure, etc. 

The following steps should form part of a crisis management and response strategy:

• Assessing the damage by identifying the misinformation spread and its impact is the first step.  
• Issuing a response in the form of a public statement by engaging the media should precede legal action. 
• Two levels of communication need to take place in response to a misinformation attack. The first tier is internal, to the employees and it should clarify the implications of the incident and the organisation’s response plan. The other is aimed at customers via direct outreach to clarify the situation and provide accurate information in regard to the matter.  If required the employees can be provided training related to the handling of the customer enquiries regarding the misinformation.
• The digital engagement of the enterprise should be promptly updated and social media platforms and online communications must address the issue and provide clarity and factual information. 
• Immediate action must include a plan to rebuild reputations and trust by ensuring customers of the high quality of products and services. The management should seek customer feedback and show commitment to improving processes and transparency. Sharing positive testimonials and stories of satisfied customers can also help at this stage. 
• Engaging with the community and collaborating with organisations is also an important part of crisis management.

While these steps are for rebuilding and crisis management, further steps also need to be taken:

• Monitoring customer sentiment and gauging the effectiveness of the efforts taken is also necessary. And if required, strategic adjustments can be made in response to the evolving circumstances. 
• Depending on the severity of the impact, management may choose to engage the professional help of PR consultants and crisis management experts to develop comprehensive recovery plans and help navigate the situation.
• A long-term strategy which focuses on building resilience against future attacks is important. Along with this, engaging in transparency and proactive communication with stakeholders is a must.

Legal and Ethical Considerations

SMEs administrators must prioritise ethical market practices and appreciate that SMEs are subject to laws which deal with defamation, intellectual property rights- trademark and copyright infringement in particular, data protection and privacy laws and consumer protection laws. Having the knowledge of these laws and ensuring that there is no infringement upon the rights of other enterprises or their consumers is integral in order to continue engaging in business legally. 

Ethical and transparent business conduct includes clear and honest communication and proactive public redressal mechanisms in the event of misinformation or mistakes. These efforts go a long way towards building trust and accountability. 

Proactive public engagement is an important step in building relationships. SMEs can engage with the community where they conduct their business through outreach programs and social media engagement. Efforts to counter misinformation through public education campaigns that alert customers and other stakeholders about misinformation serve the dual purpose of countering misinformation and creating deep community ties. SME administrators should monitor content and developments in their markets and sectors to ensure that their marketing practices are ethical and not creating or spreading misinformation, be it in the form of active sensationalising of existing content or passive dissemination of misinformation created by others. Fact-checking tools and expert consultations can help address and prevent a myriad of problems and should be incorporated into everyday operations.

Conclusion

Developing strong cybersecurity protocols, practising basic digital hygiene and ensuring regulatory compliances are crucial to ensure that a business not only survives but also thrives. Therefore, a crisis management plan and trust-building along with ethical business and legal practices go a long way in ensuring the future of SMEs.  In today's digital landscape, misinformation is pervasive, and trust has become a cornerstone of successful business operations. It is the bedrock of a resilient and successful SME. By implementing and continuously improving trust-building efforts, businesses can not only navigate the challenges of misinformation but also create lasting value for their customers and stakeholders. Prioritising trust ensures long-term growth and sustainability in an ever-evolving digital landscape.

References 

• https://SME.gov.in/sites/default/files/SME-Strategic-Action-Plan.pdf 
• https://carnegieendowment.org/research/2024/01/countering-disinformation-effectively-an-evidence-based-policy-guide?lang=en 
• https://dcSME.gov.in/Report%20of%20Expert%20Committee%20on%20SMEs%20-%20The%20U%20K%20Sinha%20Committee%20constitutes%20by%20RBI.pdf 

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