January 19, 2022
In absence of regularity clarity on cryptocurrencies in India, the industry bodies are relying on self-regulation for now.
Cryptocurrency industry body Blockchain and Crypto Assets Council (BACC) has been laying down guidelines for advertising as a part of a move towards setting a code of conduct for the players and announced that there could be additional updates in the ‘Code of Conduct.’
Here’s everything you need to know:
- Major players were anticipating the Cryptocurrency Bill to be presented in the upcoming Union Budget 2022-23 session but have yet again been delayed. In an interview, sources said that this delay is likely to provide more clarity on the taxation of crypto income in the country.
- Major cryptocurrency players such as WazirX, CoinDCX, and CoinSwitch Kuber, as well as other members of the Blockchain and Crypto Assets Council (BACC), are working to update the ‘Code of Conduct (COC).
- The key areas being debated by members of the BACC, which comprise crypto exchanges, decentralized finance startups, and NFT marketplaces, include measures to enhance consumer protection by introducing warnings and having standardized tax practices.
- This move comes in as stringent scrutiny from the regulatory bodies including the income tax department as well as the enforcement directorate.
- Sources have said that the guidelines are being framed for the protection of the customer funds, transaction settlement, and consumer-facing communication.
- The Economic Times quoted a spokesperson as saying: “At present, there is no standardized format for terms and conditions and risk warnings.”
- While some crypto trading platforms have already been under scrutiny by the DGGI (Directorate General of Goods and Tax Intelligence), there are discussions being laid to appoint one of the Big Four audit firms for audit and tax compliance strategies to members.
- Lately, many crypto trading platforms have been under the lens of government bodies as a result of the increasing adoption of crypto by retail users.
- Needless to say, the code of conduct adopted by members of the BACC will act as a guide in the absence of any formal regulations and will also include the Advertising Standards Council of India (ASCI) guidelines on crypto ads, the details of which are expected to be released soon.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.