India closes Blockchain and Crypto Assets Council citing compliance
The Internet and Mobile Association of India (IAMAI) will dismantle the Blockchain and Crypto Assets Council (BACC) in what is considered a massive blow to the only representative body of the domestic crypto industry.
Local reports reveal that the internet body distances itself from digital assets behind the central bank’s negative attitude towards space.
Allegations of non-compliance
One more source Economic Times confirmed: “Last week, the decision was made to dismantle the BACC. It did not work between the stock exchanges and the trade association, amid clear guidance from the RBI that their views had not changed on crypto. “
India’s crypto legal organization was formed as a non-profit association back in 2019 and was led by the founders of the crypto unicorns Coinswitch’s Ashish Singhal and CoinDCX’s Sumit Gupta. Other BACC members included Indian crypto exchanges, non-fungal token companies (NFTs), NFT artists and investors, among other stakeholders.
Another source told Moneycontrol that the association’s behavior has been in doubt lately, adding: “The BACC group has been very undisciplined in following the requirements and requirements of the authorities that were decided during the meetings with public bodies. The only commitment that was addressed in time was to pull down TV and digital advertising that promoted crypto investment. IAMAI will not be involved in the cryptocurrency or discussions going forward. “
India’s Economic Agency is examining AML standards
The development also comes on the back of statements from the government’s financial agency which claim that stock exchanges have failed knowledge of your customer (KYC) and rules for money laundering.
Recently, Be[In]Crypto cited reports that the Directorate for Enforcement (ED) called in the best crypto managers to investigate whether the platforms violate the currency rules.
The study found that CoinSwitch, CoinDCX and WazirX cleared requests from foreign investors to convert cryptocurrencies using commission-based third-party exchanges.
“These crypto players allow anyone in the world to perform crypto transactions without identification. When asked, one of the crypto players said that it had only captured Internet protocol addresses for users, a senior ED official told Business Standard.
The growing regulatory problems for the industry come at a time when the crypto bear market, combined with the new tax regime, has taken a hit on domestic trade volumes.
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