ZebPay and other exchanges are reportedly joining IndiaTech to raise awareness and push for regulation
India has had an uneasy history with cryptocurrencies. The country banned the sale or purchase of crypto back in 2018, before the Supreme Court quashed the ban in March 2020. Another ban was proposed earlier this year, which would ban possession of cryptocurrencies, as well as trading, mining, transfer and issuance.
There is also a possibility that those who buy crypto from off-shore exchanges could be hit with a 2% levy, according to some analysts.
The future of India’s burgeoning fintech sector is anything but certain, and now some of the country’s top exchanges have decided to take matters into their own hands.
IndiaTech, an industry association that aims to build conducive policy and regulation for the technology start-ups, unicorns and investors it represents, is in the process of gaining some new members from India’s crypto sector, according to The Economic Times.
The association already represents investors such as Falcon Edge and Steadview Capital, as well as consumer internet start-ups including Ola Electric, Dream Sports and Nykaa. Cryptocurrency exchange ZebPay will become IndiaTech’s latest member, with executives of other crypto exchanges reportedly considering joining too.
The group intends to urge regulators to swiftly institute a framework for crypto through a multi-pronged approach. One of the executives contemplating joining the association explained, “It’s all about trying from different bodies and seeing what works. There’s unlikely to be a single regulator anyway, so we’re just trying to do different things to see what works.”
Indeed, all of India’s top crypto exchanges are already part of the Blockchain and Crypto Assets Council (BACC), including ZebPay, WazirX, CoinDCX and CoinSwitch Kuber. The council set up an advisory board to provide self-regulation for the industry through a partnership with the Internet and Mobile Association of India (IAMAI) earlier this month.
IndiaTech proposed a crypto framework last month when it published a white paper recommending that cryptocurrencies be defined as digital assets and not currencies. It further recommended clarification of India’s tax law and the creation of a registration system for Indian crypto exchanges.
CEO of IndiaTech, Rameesh Kailasam, commented, “The exchanges liked the approach we took to address the issues. 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.”