Crypto industry bats for regulator

The blockchain and crypto assets council (BACC), part of the internet and mobile association of India (IAMAI), has pitched for the setting up of a regulator to watch the crypto industry.

In its written submission to the Parliamentary Standing Committtee on Finance, the industry body has also made a case for Self-Regulatory Organization to be allowed to be set up, said sources close to the development.

The SRO should be allowed to undertake activities around KYC, prevention of money laundering, and also issue guidelines on crypto ads.

The crypto industry has also sought clarity on the tax issues around the buying and selling of crypto tokens and how it would be treated under FEMA law. BACC is also understood to have pitched for the licensing of crypto exchanges so that concerns around investor safety could be better addressed.

India has seen a huge rise in the adoption of cryptocurrency, with more than 15 million Indians holding crypto assets, according to the industry estimates.

Earlier this month, responding to concerns regarding misleading crypto advertisements, Finance Minister Nirmala Sitharaman had stated in Parliament that the government is studying ASCI guidelines so that it could look at the decision on handling the problem.