IAMAI to form a board for self-regulation of cryptocurrency exchanges

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The Blockchain and Crypto Assets Council (BACC), a part of the Internet and Mobile Association of India (IAMAI), is in the process of forming a board with an aim to ensure a self-regulatory code of conduct for cryptocurrency exchanges. The proposed board will decide on AML/CFT and KYC and taxation laws for member cryptocurrency exchanges.

Jurists, technical specialists and fintech compliance specialists will constitute the board. CoinDCX, WazirX and ZebPay, which are the top cryptocurrency exchanges in India, are among the members of BACC.

Recently, the Reserve Bank of India (RBI) came out with a clarification that its circular issued in 2018 is no longer valid. It also mentioned that the RBI circular cannot be cited or quoted while warning customers about their crypto transactions.

“This is a good move by RBI and positive news for the crypto industry. It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators and would help in shaping the crypto-assets market,” IAMAI-BACC said in a note.

The circular also stated that “banks may, however, continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.”

Stakeholder view

“This is positive news for the entire crypto industry—businesses, stakeholders, and investors. Investing in crypto has always been 100% legal in India and the new RBI circular clearly confirms the right to do business with crypto firms. We have always enjoyed great relationships with our banking and payment gateway partners. Since we, at ZebPay, have always operated with strict KYC and AML policies, this is a welcome move to strengthen this relationship and make crypto investments accessible to more Indian investors,” said Avinash Shekhar, Co-CEO, ZebPay.

Earlier, IndiaTech.Org, an umbrella body for India’s technology startups, sent a 5-point policy proposal framework to the government and Reserve Bank of India. The full presentation has been prepared around bringing positive crypto regulations to India.