-Press Release
-The whitepaper proposes a 5-point recommendations framework for regulating crypto assets and crypto exchanges in India.
-Suggests to define Cryptos as digital assets and not currencies; recommends crypto to be granted a digital asset recognition.
-Proposes changes to existing regulations aiming at granting the industry regulatory clarity and providing solutions to perceived risks and concerns.
-Start-ups to benefit from progressive regulations which would lead to creation of a number of opportunities for India.
IndiaTech.Org, an industry association set-up by Founders and Investors of internet based Indian start-ups and unicorns, released a Whitepaper proposing a comprehensive 5-point recommendatory framework aimed at providing regulatory clarity to crypto assets and exchanges in India. The association highlighted the massive pool of opportunities that crypto offers to the country’s growing market. The availability of tech talent will play an important role in making India a Crypto innovation hub in the long run, the whitepaper added.
Rameesh Kailasam, CEO, IndiaTech.org said, “Crypto has emerged as an exciting area of interest amongst investors, entrepreneurs and consumers. This sector holds huge potential for Indian start-ups in the crypto space to grow from India. 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. Introducing reasonable checks and balances will ensure that India is able to embrace and adopt new-age technologies by adequately leveraging their potential.”
The 5-point recommendations framework has been formulated to provide answers to Government’s concerns regarding AML, CFT, taxation, transaction traceability and other issues. The primary recommendation suggests defining Cryptos as digital assets and not currencies similar to other assets such as Gold, stocks, or marketable securities. It further recommends introduction of a system of registering India registered/Indian founded Cryptocurrency exchanges. The Whitepaper further recommended the need for enablement of necessary provisions in Direct Tax and Indirect Tax laws given today, there is no clear framework for taxing crypto in India.
IndiaTech.org has also suggested Self-regulation which would essentially define a code of conduct for the industry. The internet-based start-up association has recommended the Government to adopt principle based self-regulatory Guidelines for the industry to align with, until necessary amendments to laws and regulations are introduced.
Full version of the recommendation’s framework can be accessed here.
Industry reaction by Sumit Gupta, Co-Founder and CEO, CoinDCX
“As crypto is making waves across the world, the time has come to define the true nature of crypto in India. More than being a replacement to FIAT currencies, crypto by nature is a strong digital asset, a store of value. This will bring immense clarity on its investment potential” says Sumit Gupta, Co-Founder & CEO of CoinDCX, a formidable player in cryptos in India. “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” Sumit added, referring to the White Paper.