India is a country of 1.45 billion, of which 286.2 million internet users owned cryptocurrency as of April 2022. However, this large chunk of crypto users was still awaiting clarity and leniency in the existing crypto environment in the country. Recently, the Finance Minister stated concern on behalf of the central bank regarding cryptocurrencies and their destabilizing effect on the monetary and fiscal stability of the country. Which once again pushed the cryptocurrency businesses into a huddle to discuss the immediate next steps to ensure crypto is adequately represented.
The latest meeting of the Indian crypto exchanges took place in Bengaluru, the country’s tech capital. This was the first time the exchange-runners were meeting since the IAMAI backed out from the Blockchain and Crypto Assets Council [BACC], the advocacy representing the country’s crypto interest.
The situation in the country is tense as crypto businesses shift base outside India; meanwhile, the central bank and the Finance Ministry remain increasingly wary. In fact, the central bank wants to prohibit cryptocurrencies, and it became crucial for the exchanges to rally together to allow crypto to stay legal.
Sumit Gupta, the co-chair of the now perished BACC, reportedly stated that crypto advocates like him were doubling their efforts on the front, as mentioned earlier. Gupta, the co-founder and the CEO of CoinDCX, said,
“We have always valued our association with IAMAI, however we are also shocked and disappointed with their sudden decision.”
“With BACC, we were able to bring the crypto industry together and work on many key projects to build confidence in the industry… Our stated belief as an industry has always been to have sustainable dialogue with regulators and stakeholders and address concerns around user protection and to advocate progressive regulations. Notwithstanding the current situation, as an Industry we will continue to positively engage with all stakeholders.”
The situation was getting tough even for crypto users due to the stiff taxes, payments being cut off from banks to exchanges, the market remaining volatile, and now the Reserve Bank of India’s view of banning crypto. More details from the meeting will be revealed shortly, and we may see how the exchanges were planning to tackle the new situation and if the RBI pivot its ways.