The Blockchain and Crypto Assets Council (BACC), a part of the Internet and Mobile Association of India (IAMAI) is setting up a formal board to oversee the implementation of a self-regulatory code of conduct for members of crypto exchanges.

IAMAI Board to Oversee Self-Regulatory Code of Conduct for Crypto Exchanges

The IAMAI-Blockchain and Crypto Assets Council said on June 1st that it’s setting up a board to oversee the implementation of a self-regulatory code of conduct for its member crypto exchanges on voluntarily complying with AML, CFT, KYC, and other taxation laws.

The board will comprise of reputed jurists, technical specialists, and fintech compliance specialists working towards establishing ethical and professional standards in the crypto industry.

India’s largest cryptocurrency exchanges, CoinDCX, WazirX, and ZebPay, are among the members of BACC.

On May 31st, India’s central bank, the Reserve Bank of India clarified in the notice that Indian banks should not use its 2018 circular which has already been struck down by the Supreme Court in 2020.

Customer Due Diligence for transactions in Virtual Currencies (VC)https://t.co/iAUAx8KpRh

— ReserveBankOfIndia (@RBI) May 31, 2021

Responding to this, Sumit Gupta, CEO, and co-founder, CoinDCX, and member of IAMAI–BACC, said:

“I hope the confusion around the same ends now. We also respect the concern the banks may have around AML policies and discussions around the same will make the industry stronger and investors and investments safer.”

RBI Urges Indian Banks Not to Use 2018 Circular

BACC hopes that the clarifications given by RBI to Indian banks against using its 2018 circular that prevents banks from servicing crypto-related transactions will finally be put to rest.

“This is a good move by RBI and positive news for the crypto industry. It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators and would help in shaping the crypto-assets market,” IAMAI-BACC said.

RBI, however, has asked banks to continue carrying out its due diligence on customers under existing regulations such as KYC (Know Your Customer), AML (Anti-Money Laundering), CFT (Combating the Financing of Terrorism), PMLA (Prevention of Money Laundering Act), and FEMA (Foreign Exchange Management Act).