A part of the Internet and Mobile Association of India (IAMAI), the Blockchain and Crypto assets Council (BACC) announced that it is setting up a formal board to monitor the implementation of a self-regulatory code of conduct for the member crypto exchanges. Among BACC members are India’s largest virtual currency exchanges including CoinDCX, WazirX and ZebPay. As per PTI, the self-regulatory board, which is being set up following the Reserve Bank of India (RBI) ruling this week, will include eminent jurists, technical specialists and fintech compliance specialists. As per this plan, the crypto exchange members are voluntarily complying with KYC, tax and other norms.
BACC which has been set up under the aegis of IAMAI also welcomed the RBI’s advice to all the banks against citing the 2018 circular that had called for the non-acceptance of crypto-related financial exchanges of tits customers. IAMAI-BACC said in a statement, “The association hopes that with this clarification given by circular RBI/2021-22/45, all speculations that banks are stopping transactions from June 6, 2021, will be put to rest.”
However, RBI in its circular also called for certain mandatory checks including KYC (Know Your Customer), AML (Anti-Money Laundering), CFT (Combating the Financing of Terrorism), PMLA (Prevention of Money Laundering Act) and FEMA (Foreign Exchange Management Act) to be complied with. These checkers were also hailed by IAMAI-BACC. It said, “The IAMAI-BACC believes that such checks are necessary and must be carried out” while adding that crypto exchange members of the association have decided to set up the self-regulatory board.
IAMAI-BACC said on Tuesday, “On its part, the crypto exchange members of the association have set up a self-regulatory code of conduct for its members...In parallel, IAMAI has also suggested that the government should regulate crypto assets through an act of parliament.”
Further, while noting that there are 15 million users and upwards of Rs 10,000 crore held by small investors, IAMAI-BACC said that India is among the top players in the global crypto market. It said in a statement, “for the welfare of the users, it is very important that crypto assets are regulated. This is a good move by RBI and a 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.”
In order for self-regulation, IAMAI-BACC will be working together with the customers, markets and regulators for the establishment of ethical as well as professional standards for the crypto industry. Nischal Shetty, founder of WazirX and IAMAI-BACC member also credited RBI move for bringing about clarity in banks regarding crypto exchanges. He said, “They've been on the fence whether they should service the crypto industry or not. Now there's clarity that will help banks provide services to the crypto industry.”