Cryptocurrency exchange Zebpay and others doing business in India will reportedly be joining IndiaTech, an association aimed at providing regulatory clarity for crypto in the country.
According to a Monday report from The Economic Times, executives from some of India’s crypto exchanges said their businesses are considering joining IndiaTech in an effort to pressure the government to regulate crypto, with Zebpay confirming it would be doing so. The report comes one month after the organization published a white paper which included policy recommendations for a regulatory framework for crypto assets and exchanges in India.
“The exchanges liked the approach we took to address the issues,” said IndiaTech CEO Rameesh Kailasam. “Crypto exchanges want to be part of IndiaTech because we have moved the needle in the past few months on the narrative and perception of this industry.”
The IndiaTech white paper includes suggestions for a regulatory framework that would define cryptocurrencies including Bitcoin (BTC) as digital assets and not currencies. According to the organization, this would legally make them more akin to “gold, stocks, or marketable securities.” In addition, the proposal recommends introducing provisions to the country’s tax law, which is seemingly lacking for crypto users, and establishing a clearer framework on Anti-Money Laundering compliance and Know Your Customer verification and reporting.
“There has been no significant breakthrough yet,” said an unnamed senior executive at one of the major crypto exchanges in regards to joining IndiaTech. “Ultimately this effort is going to need a combination of the white paper, the code of conduct and other things.”
Indian crypto exchanges including WazirX, CoinSwitch Kuber, CoinDCX, and Zebpay are already a part of the Blockchain and Crypto Assets Council, an arm of the Internet and Mobile Association of India. The association helped petitioned lawmakers about the Reserve Bank of India’s ban on financial institutions providing services to crypto firms in India, a measure which the country’s supreme court overturned in March 2020.
Reports have been circulating suggesting Indian lawmakers are considering banning cryptocurrencies in the country, but there has been no clear legislation passed by Parliament at the time of publication. Amid this apparent lack of regulatory clarity, crypto exchanges Kraken, Bitfinex and KuCoin are alsoreportedly mulling setting up shop in India.