EVOLUTION OF CRYPTO REGULATIONS IN 🇮🇳
2017->Zero clarity.
2018-> Ban on cryptocurrencies by the RBI.
2019 -> Lawmakers proposed a 10-year jail term for cryptocurrency trading. 🇮🇳.
2020 -> In a historic case between crypto and the RBI, crypto wins the case in the Supreme Court.
2023 ⤵️
- > Crypto companies as reporting entities under PMLA.
- > KYC for crypto exchanges
- > Clarity on income tax
- > TDS clarity
- > Registration of domestic crypto companies with FIU.
- > Offshore crypto exchanges serving Indians need to register with FIU (Financial Intelligence Unit)
The FIU has issued a show cause notice to 9 crypto offshore crypto exchanges. Either they come forward and register with the FIU or the URLs will be blocked.
The FIU's job in India is simple: create a mechanism to verify crypto transactions. Select the transactions that look suspicious and report them to the ED, Income Tax Department and other relevant departments.
The FIU had control over Indians trading on Indian exchanges, but not Indians trading on offshore exchanges.
This should be seen as a positive 1st step as now offshore crypto exchanges might open up Indian Entity, local offices, hire compliance officer based out of India.
Not every offshore crypto exchanges might be interested but the big global crypto players can't afford to ignore India.
This will take the industry to next level and there will be a level playing field for everyone. The Indian exchanges have nothing to complain as the rules are going to be same for everyone.
FIU registration is just a first mini step, few more things after FIU registration might follow:
-> TDS deduction clarity by off shore exchanges
-> Will Indian govt provide offshore crypto exchanges its KYC mechanism.
Those who think when "crypto bill " will be presented in the parliament? My answer is that almost all the ingredients of the bill are out. The only clarity left at present is on:
- Non custodial wallets
- DEX
- DeFi
Will 2024 be that year? Maybe or maybe not.
Source @Kashif Raza
