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IAMAI to set up a board to oversee self-regulation by crypto exchanges

IAMAI and Blockchain and Crypto Assets Council (BACC) have welcomed the clarification provided by the Reserve Bank of India on Monday that advised Indian banks to stop citing the 2018 circular for not accepting crypto transactions of customers. (Photo: Reuters)

1 min read . Updated: 01 Jun 2021, 05:26 PM IST Staff Writer

As per industry estimates there are over 15 million crypto investors in India, holding Rs10,000 crore worth of digital assets

NEW DELHI: Industry body, Internet and Mobile Association of India (IAMAI), on Tuesday said it is setting up a board to oversee the implementation of a self-regulatory code of conduct for its members that lays down that all crypto exchange members will voluntarily comply with AML/CFT and KYC and other company and taxation laws.

This board will comprise of eminent jurists, technical specialists, and fintech compliance specialists.

IAMAI and Blockchain and Crypto Assets Council (BACC) have also welcomed the clarification provided by the Reserve Bank of India on Monday that advised Indian banks to stop citing the 2018 circular for not accepting crypto transactions of customers.

The association added that the clarification will put to rest all speculations that banks are stopping transactions from 6 June, 2021.

Meanwhile, in Monday’s notification, RBI also asked lending institutions to continue to carry out customer due diligence processes in line with regulations governing standards for know your customer (KYC), anti-money laundering (AML), combating of financing of terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.

“This is a good move by RBI and a positive news for the crypto industry. It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators and would help in shaping the crypto-assets market," IAMAI-BACC said in a note.

As per industry estimates there are over 15 million crypto investors in India, holding Rs10,000 crore worth of digital assets.

"I hope the confusion around the same ends now. We also respect the concern the banks may have around AML policies and discussions around the same will make the industry stronger and investors and investments safer," said Sumit Gupta, CEO and co-founder, CoinDCX and Member, IAMAI–BACC.

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