Internet and Mobile Association of India (IAMAI) Blockchain and Crypto Assets Council (BACC), India’s largest crypto association, has welcomed the pro-active clarification of the Reserve Bank of India advising the banks against using the 2018 circular to not accept crypto related transactions of customers. The association hopes that with this clarifications given by circular RBI/2021-22/45, all speculations that banks are stopping transactions from 6 June 2021 will be put to rest.
The RBI circular also correctly suggests that certain mandatory checks such as KYC, AML, CFT, PMLA, FEMA should be carried out on the accounts. The IAMAI-BACC believes that such checks are necessary and must be carried out. On its part, the crypto exchange members of the association have set up a self-regulatory code of conduct for its members which lays down that all crypto exchange members shall voluntarily comply with AML/CFT and KYC and other company and taxation laws. A formal board comprising eminent jurists, technical specialists and fintech compliance specialists is being set up to oversee the implementation of this Self-Regulatory Code. In parallel, IAMAI has also suggested that the government should regulate crypto assets through an act of parliament.
Appreciating the positive development, IAMAI-BACC said, “It is well known that with 15 million users and upwards of 10,000 crores held by small investors, India is among the top players globally in the crypto market and for the welfare of the users it is very important that crypto assets are regulated. This is a good move by RBI and a positive news for the crypto industry. It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators and would help in shaping the crypto-assets market.”
With a special emphasis on customer due diligence, Mr. Naveen Surya, Chairman, Fintech Convergence Council and Chairman Emeritus of Payments Council of India (PCI) said, “Members of BACC of IAMAI are committed to the highest level of business integrity and comply with applicable rules and regulations laid down by the RBI and various regulatory authorities in India.”
Mr. Sumit Gupta, CEO and co-founder, CoinDCX and Member, IAMAI – BACC added, “We welcome the move from the RBI to clarify the stand around the old circular which was set aside by the honorable Supreme Court. I hope the confusion around the same ends now. We also respect the concern the banks may have around AML policies and discussions around the same will make the industry stronger and investors and investments safer”
Mr. Nischal Shetty, Founder, WazirX and Member, IAMAI-BACC further added that, “It’s an excellent move by the RBI. Brings in a lot of clarity for the banks. They’ve been on the fence whether they should service the crypto industry or not. Now there’s clarity that will help banks provide services to crypto industry”
Members of IAMAI BACC ensures to work together with customers, markets and regulators for the establishment of ethical and professional standards for crypto industry.