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 entitir
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 @Bestrading14
