Crypto bill to give power to SEBI

The new Cryptocurrency bill is set to empower regulators and government agencies including the Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI) and the tax department to scrutinize Know Your Customer (KYC) data of investors that crypto exchanges have collected from customers.

As indicated by two individuals aware of the development, the new guidelines would mandate cryptocurrency exchanges to share their KYC data, which basically includes details of their investors, with the government.

The KYC information could assist regulators zero in on transaction across platforms, actually take a look at that against bank deposits and even calculate out or scrutinize gains and other discrepancies.

The new cryptocurrency framework will likewise set up a uniform KYC process that every exchange should adhere to, they said. As things stand today, different cryptocurrency exchanges have different KYC processes.

“KYC information will turn into the key for any scrutiny by any regulator,” one of the people aware of the development said. “And unless if this is spelled out in the law and made mandatory, the cryptocurrency operators (exchanges) need not share it.”