By Priyanka Shetty
January 10, 2022
Indian cryptocurrency exchanges have been proposing several ideas to regulate crypto based on their net worth and technology.
According to the Economic Times, during the recent meeting between crypto exchange and government officials, crypto exchanges have apparently agreed to follow all guidelines by the government regarding asset and liability management (ALM), know your customer (KYC), and Combating the Financing of Terrorism (CFT) to curb criminals from taking advantage of the exchanges, industry insiders said.
Exchanges shared that they already have a basic code of conduct in place and are open to either the Reserve Bank of India (RBI) or market regulator Sebi regulating them.
Jaideep Reddy, leader, technology law, at law firm Nishith Desai Associates, said, “In most cases, the industry wants the government to regulate cryptocurrency exchanges rather than regulating the crypto asset per se”. He further added, “regulators could make exchanges responsible and ask them to follow KYC and AML practices similar to what we have for NBFCs and banks.”