Day by day cryptocurrency in India is getting more spaces in news and media. During ongoing speculation over the cryptocurrencies regulatory status in India, large crypto exchanges in the country have partnered with the Internet and Mobile Association of India (IAMAI) to form a self-regulatory body.
Points to be noted:
- The new body is comprised of large Indian crypto exchanges including WazirX, CoinDCX, ZebPay and CoinSwitch Kuber. They will form a new regulatory board under the Blockchain and Crypto Assets Council, part of Internet and Mobile Association of India (IAMAI).
- This self-regulatory code will focus on anti-money laundering, combating the financing of terrorism and know-your-customer (KYC) requirements, and ensure compliance with the existing Prevention of Money Laundering Act (MLA) and Foreign Exchange Management Act (FEMA).
- Indian crypto industry has been in a state of uncertainty, with parliamentary efforts to impose further regulation failing to pass recently, despite strong apparent support. The country’s Reserve Bank of India also issued a circular recently, reminding the finance sector that its attempted ban on banks offering services linked to crypto had been overturned by the Supreme Court in March 2020.
Overall this is a good news towards legalization of cryptocurrencies in India.