India’s cryptocurrency industry intends to streamline its operations to gain legitimacy among the finance ecosystem. The trigger was provided by the recent RBI reminder that its 2018 circular is no longer applicable as the SC has struck it down in 2020.

There are crypto currency exchanges in India — WazirX, CoinDCX, and CoinSwitch Kuber. These have tied up with the Internet and Mobile Association of India (IAMAI) and have collectively set up an advisory board to implement a code of conduct for the industry. This board will be set up under the Blockchain and Crypto Assets Council (BACC), which is part of IAMAI. It will act as a self -regulatory organisation for this sector.

The code is being worked out. It will be applicable to all member cryptocurrency exchanges. It will include standardised annual audits, routine disclosure of company information and funding, KYC checks, improved data storage standards. There will be reassessment of customer risk profile.

In this industry, what is required is balancing between regulations and supervision. There should be steps to improve due diligence.

The board will interact with the authorities to flag the suspicious transactions. The board will certify exchanges. It will have some external members. In this industry, what is required is balancing between regulations and supervision. There should be steps to improve due diligence.

All this is being deliberated. There is an effort to bring the informal nascent industry under one standard authority.