Indian regulator gets rid of its only crypto exchange body – Bane or Boon?
Previously, there was only one Indian regulator who campaigned for crypto and represented the sector before the people of India. Today, that exact device will no longer exist.
The government of India is set to dissolve the Blockchain and Crypto Assets Council, a move seen as a blow to the digital currency industry.
In a statement, the Internet and Mobile Association of India confirmed that they will dismantle the BACC. However, the Indian regulator will continue to support BACC’s advocacy efforts until the end of July to ensure a smooth transition of industry and completion of ongoing projects.
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Indian regulator pulls the plug on the BACC
BACC acted as an umbrella company for over a dozen Bitcoin and Blockchain companies to connect with the authorities. It included well-known cryptocurrency exchanges such as CoinSwitch Kuber, CoinDCX and WazirX.
The dissolution of BACC is the latest loss for India’s crypto industry, which has been decimated by harsh new fees during the crypto winter. This incident occurs at a time when the cryptocurrency market in India is already the subject of regulatory scrutiny and is being investigated by many entities.
Image - ORF
After months of strife between the stock exchanges and the agency, IAMAI reportedly wanted to leave the BACC so that the Indian regulator could break free from crypto. The disagreement between the association and cryptocurrencies has only intensified in recent months.
Things that do not “train” between BACC and IAMAI
According to reports, the stock exchanges have allegedly violated established regulations by extending external audits of special cases. Consequently, IAMAI emphasized that such incidents made it problematic to represent cryptocurrency exchanges.
“It did not work between the stock exchanges and the industry association in the wake of the Reserve Bank of India’s unequivocal assurance that their view of crypto had not changed,” revealed a source with knowledge of the situation.
BTC total market cap at $399 billion on the daily chart | Source: TradingView.com
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Recently, RBI Governor Shaktikanta Das stated that cryptocurrencies posed a “clear threat” to the country’s financial system.
A head of cryptocurrency who asked not to be identified revealed that the Indian regulator and other parties involved must accept the decision before it can be effectively adopted. Another, as yet unplanned meeting is expected to give the final decision.
Meanwhile, Bitcoin is currently trading at $ 20,950, a 3.5% increase over the last 24 hours, according to data from Coingecko on Friday. According to data from Coinmarketcap.com, the market share is currently 42.65 percent, a decrease of 0.15 percent from the day before.
Featured image from LinkedIn, chart from TradingView.com
