Considering starting a cryptocurrency business in India? Looking for information on the key aspects of cryptocurrency regulation in India? Look no further because all the answers are in our article.
Regulation of Cryptocurrency Activities in India
Those intending to register a cryptocurrency exchange in India should keep in mind that the country has no cryptoasset regulatory framework. In fact, there’s a lot of uncertainty & confusion surrounding the regulation of cryptocurrency activities in India today. Some of the reasons for that include:
- a circular issued by India’s RBI which restricts the ability of India-registered & RBI-regulated financial companies to carry out transactions with cryptocurrencies.
- a bill on banning all cryptocurrencies activities. According to it, producing, storing, selling, issuing, transfering & using cryptocurrencies in India are prohibited. As of now, the Indian parliament hasn’t yet passed the bill.
Market participants have filed several petitions with India’s Supreme Court challenging the circular’s constitutionality & asking the Court to clarify some of its key aspects. As a result, the Court declared the circular as such that has no legal power.
All those planning on launching a cryptocurrency business in India should keep in mind that the country has no specific government agency responsible for regulating cryptocurrency activities. However, there’s a list of regulators that have some impact on the cryptocurrency industry. Those include:
- Finance Ministry;
- Electronics & IT Ministry;
Recently, several Indian associations (both public & private) have come up with an initiative to look into legal issues related to cryptocurrencies & suggest possible solutions. Those include:
- Blockchain & Digital Currencies Association;
- Blockchain Foundation;
- Digital Asset & Blockchain Foundation;
- Internet & Mobile Communications Association.
Given the latest developments in India’s cryptocurrency industry, registering a cryptocurrency exchange in India has a number of advantages to it. We will be continuing to monitor the situation, providing you with up-to-date information on the regulation of cryptoasset activities in India.
Interested in launching an ICO in India? Considering using blockchain technology for launching an Indian startup? Need legal advice on regulation of cryptoasset activities in India? IQ Decision UK is the answer. Give us a call or drop us a line and our legal assistants will be happy to give you a hand with any legal issues you’re facing.