The government of India should recognise Bitcoin and other cryptocurrencies as digital assets, not currencies. This call appears in the white paper from the internet-startup association IndiaTech.org.
@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: https://t.co/OkMs0QBkG6
— IndiaTech.org (@IndiatechO) May 5, 2021
The document contains recommendations for establishing a regulatory framework for cryptocurrency exchanges and digital assets. The authors are convinced that the latter should receive the same recognition as gold, stocks, or bonds.
The white paper contains proposals for creating a licensing system for Bitcoin exchanges, as well as ensuring compliance with regulatory requirements in terms of KYC/AML and reporting.
There is also a need to clarify the tax code. At present it does not account for digital assets.
The authors touched on creating a regulatory framework for token issuance and revisiting oversight of the payments space with regard to cryptocurrencies.
IndiaTech believes that some aspects of sector regulation could be devolved to the level of the organisations themselves.
“Today the main need for the crypto industry is to obtain regulatory transparency. We expect the government to be in dialogue with its participants and to choose a progressive approach,” said the head of IndiaTech, Ramesh Kailasam.
The initiative was supported by leaders of major local trading platforms, notably CoinDCX.
Earlier, in September 2020, the Council of Ministers of India began considering a document on banning cryptocurrency trading.
In February 2021, Bloomberg, citing a Finance Ministry source, reported that in case of a ban, holders would have three to six months to close their positions.
In March there were speculations about possible criminal and administrative liability for miners and traders.
Earlier, a Business Today source said authorities are considering the possibility of blocking IP addresses of cryptocurrency exchanges and related companies.
Subscribe to ForkLog on YouTube!