Indian Сrypto-Exchanges Are Trying to Find a Consensus With RBI
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4 June

The Indian crypto-exchanges are ready to make some concessions in order to establish a relationship with the Reserve Bank of India (RBI).

Recall that April 5, the Reserve Bank of India has virtually banned cryptocurrencies by barring regulated entities from providing services to any individual or business dealing in digital currencies. "In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs (virtual currencies),” was said in the bank's statement.

In response to this ban, the stock exchanges were submitted to RBI in court. The next Supreme Court session is scheduled for July 20. During the last hearing, the country's supreme court offered the exchanges to find a common language with the RBI and agree on an interaction.

Last week, the firms sent out letters in which they made their statements regarding the situation. Representatives of Indian crypto exchanges have stated that they are ready to ensure greater transparency of their work, take additional measures to protect customers, and even open themselves up for closer monitoring.

Key quotes and statements:

“A ban is counter-productive, therefore, we have suggested that there should be appropriate regulations that can address the government or the central bank’s concerns,” said Anirudh Rastogi, managing partner at legal firm TRA Law, which filed the supreme court petition for four exchanges.

“We already follow the strict know-your-customer (KYC) and anti-money laundering (AML) guidelines and we have detailed that out in the application (to the RBI). Plus, we have also suggested measures that we are ready to take to improve the KYC-AML norms, such as including passport details as well. We are also ready to take any suggestion that the regulator has to offer that can address their concerns,” - one of the petitioners in the case told Quartz, requesting anonymity.

Сryptocurrency insurance is “to be taken up by the exchange and adds a layer of surety and customer protection in case of any mishap." All this can happen only if we come under a regulatory purview, added the petitioner.

Also, in May, it became known that the authorities of India are working on a proposal that will allow authorities to impose Goods and Services Tax on cryptocurrency transactions, despite the legal uncertainty of this kind of activity in the country. India intends to impose an 18% fee on cryptocurrencies trading after several months of spreading negative information about this class of digital assets. Сryptocurrencies could be classified as “intangible goods.”

By Ekaterina Ulyanova

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