To Provide Clear Definitions For The Crypto Industry, India’s consumer internet startups and investors, has planned to provide clear definitions for the cryptocurrency industry.

It has been reported that the association released a white paper including a policy proposal with recommendations for a regulatory framework for crypto-assets and crypto exchanges in India. The proposed framework suggests defining cryptocurrencies like Bitcoin (BTC) as digital assets and not currencies.

@IndiatechO is releasing a two series White-paper on #Crypto, the first paper talks about the opportunities offered by #Crypto and #blockchain to the world. With rapidly growing potential, #India needs to regulate the sector. Link to the #IndiaTechDecoder: (@IndiatechO) May 5, 2021

The proposal read:

“Define cryptocurrencies as digital assets and not currencies and grant them recognition as digital assets like gold, stocks, or marketable securities.”

However, the framework further recommends introducing a registration system for India-based cryptocurrency exchanges as well as establishing necessary checks related to Anti-Money Laundering (AML) compliance, Know Your Customer (KYC) verification, and reporting. The proposal also points out the need for necessary provisions in India’s tax law, as there is no clear framework for taxing crypto in India.

Will this bring some closure to the India crypto regulation saga? IndiaTech .org, a tech industry association, has asked the government to define cryptocurrencies like #Bitcoin as digital assets and not currencies. — Cointelegraph (@Cointelegraph) May 6, 2021

The report said that the white paper also stresses the need to establish a framework for token issuance in India and regulate crypto in the payments industry. IndiaTech also proposed to encourage self-regulation to define a code of conduct for the industry.

Rameesh Kailasam, the CEO of IndiaTech, said that the crypto industry holds huge potential for Indian startups.

He added:

“The foremost need today is for this sector to be granted the much-needed regulatory clarity that it has been seeking. We are hopeful that the Government will work with the industry to regulate the sector and that a progressive approach is adopted while doing so.”

Likewise, Sumit Gupta, the co-founder and CEO of major local crypto exchange CoinDCX,  called on the government to define the true nature of crypto in India. 

Thus, he said:

“This effort by the IndiaTech team is truly commendable. It helps bring a fresh perspective to the regulatory discussions that are going on today. The recommendations if accepted will open immense potential for Indians to participate in this new global asset class.”

Source: Cointelegraph | Image: Information Age

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