Indian crypto exchanges are setting up their own self-regulation board even as the government mulls over new legislation
- India's leading crypto exchanges
WazirX, ZebPay, Unocoin, CoinDCX, and CoinSwitch Kuber, have joined hands with India's Internet and Mobile Association (IAMAI).
- The new board shall be responsible for overviewing compliance of crypto exchanges with the set self-regulatory guidelines.
- In parallel, IAMAI has also suggested that the government should regulate crypto assets through a parliament act.
While governments globally try to understand the blockchain as a technology, crypto exchanges are wasting no time finding solid ground of their own. One way to achieve recognition and legitimacy, would be to establish some ground rules on par with traditional stock exchanges.
India's leading crypto exchanges WazirX, ZebPay, Unocoin, CoinDCX, and CoinSwitch Kuber, have joined hands with India's Internet and Mobile Association (IAMAI). The plan is to create a new board under the Blockchain and Crypto Assets Council (BACC), a part of IAMAI. This board shall be responsible for overviewing compliance for crypto exchanges with the set self-regulatory guidelines.
AdvertisementThe industry body already represents all major mobile and internet service providers, ranging from software makers like Adobe to streaming sites like Netflix.
The formal board shall consist of eminent jurists, technical specialists, and fintech compliance specialists who'll oversee the application of a self-regulatory code. BACC has asked the government to implement regulations for crypto assets through the parliament, but it's on its own until that happens.
The self-regulatory code, which is already in place, focuses on AML (Anti-Money Laundering), CFT (Combating the Financing of Terrorism), PMLA (Prevention of Money Laundering Act), and FEMA (Foreign Exchange Management Act). The board will also liaison between the RBI and crypto exchanges to report suspicious transactions or anomalies.
"The IAMAI-BACC believes that such checks are necessary and must be carried out. On its part, the crypto exchange members of the association have set up a self-regulatory code of conduct for its members. Parallelly, IAMAI has also suggested that the government should regulate crypto assets through an act of parliament," it said.
According to Nischal Shetty, CEO of WazirX, there are close to 1.5 crore crypto investors in India, with more than 15,000 crores in total investments. It isn't the first time IAMAI has opted for self-regulation since it also looks after OTT (over the top) content moderation and censorship. These include a modified grievance redressal mechanism, eliminating a stifling 'prohibited content' list, and penalties for violating the code.
The industry body also welcomed the Reserve Bank of India's advice to banks against using its 2018 circular that called for the non-acceptance of cryptocurrency transactions of customers. It's much needed good news for the crypto community, which has keenly observed the government's stance.
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