Crypto Regulation In India - Crypto Exchanges Ready To Accept Stricter Rules To Get Regulated

Hello Crypto Lovers,

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The tussle between Crypto investors and Government of India and Crypto exchanges and Government of India continues with regards to regulation of Cryptos in India.

While the Reserve Bank of India is still in favor of total ban of Cryptos, the Government of India seems like it is not in favor of total ban and could even regulate the Cryptos based on the global framework being discussed.

In the latest push to get Cryptos regulated in India, the Crypto exchanges in India have had a discussion off late with the advisors and Government officials and have come up with fresh appeal and are willing to accept stricter rules whatever the Government may propose and are also willing to comply to all the rules and guidelines the Government may propose.

Some of the highlighting features/points the Exchanges put forth are as below in order to get them on board with regards to regulation of Cryptos:

Willing to abide by Government guidelines with regards to Asset and Liability Management (ALM) in order to manage the risks which may arise from Crypto trading.

Ready to maintain the details of Customers as part of Know Your Customer(KYC) to have details of the people who used Exchanges for Crypto trading.

Are even ready to combat the financing Terrorism from misuse of exchanges and prevent criminal activities as part of that.

Exchanges are already having basic code of conduct and are ready to get regulated by Reserve Bank of India(RBI) or Security Exchange Board of India (SEBI).

Those are some the things Government might propose and Crypto Exchanges are willing to abide by that.

Exchanges have even gone a step further and asked the Government to make the Exchanges responsible and to abide by KYC and Anti Money Laundering(AML) practices rather than traders to abide by these, which in turn makes Exchanges more responsible and they will have to face the consequences if any.

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The reason behind exchanges urge to fix the rules and regulation on themselves is because, the lack of regulation rules is hampering their growth as people are fearing of Crypto ban and are not coming forward to invest in Cryptos.

Keeping those points in mind, the Exchanges are asking the Government to come up with a regulatory framework in the upcoming Union Budget with all the points mentioned above and give breathing space to Exchanges as well as investors of Crypto to clear out their doubts.

Raid on WazirX and Inquiry on other Exchanges:

Recently, there was raid on Indian Crypto exchange WazirX and even other Crypto exchanges are under the radar of Goods and Service Tax (GST) department as there seems to be a GST tax evasion by WazirX although the Crypto Exchange is denying that, it has paid advance tax as per the guidance they had and don't have any intention of evading tax.

Interestingly, this makes it clear that, if Crypto exchanges are levied GST or regular tax, does that mean, the Cryptos are already being treated as regulated?

Not sure as of now as the Government is still in the process of making a framework and proposing the Crypto Bill in the parliament and until an official word from them, everything is just an assumption.

Talking about Crypto Bill, there is a proposition by the same group of exchanges to tweak existing rules to make necessary changes to existing laws about Cryptos and other such things to allow the taxation on Cryptos and make them regulated in that way instead of proposing a new bill in the name of Crypto bill.

It's also to be noted that, the exchanges also asking the Government to provide the status of authorized dealers to exchanges and by that way, the Government could levy direct tax and indirect tax (GST).

The ball is in Government's court and it's up to them to make things easier for exchanges or further complicate, but, it seems a fair deal of proposition by exchanges, what do you guys say?

I am gonna stop it now as the blog is already getting longer and longer and I will be back with another topic as the Crypto is like hot cake right now whether about the bans, regulations, price fluctuation or even scams :)

Keep blogging and keep smiling and have a great week ahead.

Good day everyone :)

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