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.
AdvertisementThe cryptocurrency world has always been about decentralisation, and lack of control is one of its prime selling points. However, the industry is gradually maturing and has reached a critical point -- how do you gain investor confidence in an industry that makes headlines for the immense volatility.
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.
The 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.
Huawei announces first devices with HarmonyOS — set to take on Apple and Google with its in-house operating system
OnePlus Nord CE 5G full specifications leaked days ahead of launch – heavily inspired by the original Nord
Five fintech ideas that are raking in the most amount of money
Popular on BI
- I took a new job in a remote location after my divorce. There aren't many people to date, but I'm happy staying single.
- Elon Musk hits out at viral videos of DINK couples, saying there's an 'awful morality' to those who choose not to have children
- Married couples often share high blood pressure, study shows
- 8 Irresistible seasonal snacks to warm your winter days
- Vijay Shekhar Sharma says 'Wed in India' is a good idea for its food options
- NCLAT stays CCI penalty on NTPC in Ratnagiri Gas & Power shares issue
- A Japanese Start-Up Is Testing a Rocket Powered Entirely By Rocket Fuel Created From Cow Dung!
- Amazon sues scammers for stealing millions of dollars via fake returns