Crypto Exchanges Coming Together To Lobby For Regulation

Crypto Exchanges Coming Together To Lobby For Regulation

SUMMARY

As the global user base of cryptocurrencies and crypto assets has surpassed 200 Mn, India crypto industry has also registered a record jump in the number of crypto adopters

On one hand the government is supposedly mulling a roadmap of regulations for crypto and blockchain in India while on the other hand crypto exchanges want to be present across internet and startup lobbies to push for their demands

The industry expects multiple regulatory bodies to oversee the growth of Indian crypto sector and wants to build a presence across various tech lobby groups for the same

Top Indian crypto exchanges are in the final stages of joining IndiaTech, an industry association representing India’s consumer internet startups, unicorns and investors, to increase pressure on the government to regulate crypto in India, according to reports. 

As the global user base of cryptocurrencies and crypto assets has surpassed 200 Mn, Indian crypto industry has also registered a record jump in the number of crypto adopters. The number of active users is currently approximately 15 Mn, while the number of blockchain startups in this space has gone up from 100+ in 2018 to 300+ in 2021. According to a recent report by industry association IndiaTech.org, Indian users currently hold crypto assets worth more than $1.5 Bn and their daily trades in crypto are worth $350-500 Mn.

Several industry sources were quoted in an ET report, saying that  a multi-pronged approach could help raise awareness and push regulators to quickly establish a framework for crypto. Crypto exchange ZebPay said it was joining IndiaTech, which represents India’s leading consumer internet startups such as Dream Sports, Ola Electric and Nykaa, besides investors like Steadview Capital and Falcon Edge.

In May, it was reported that the Indian government may form a fresh panel of experts which would come up with the roadmap for regulations and use of blockchain in India. In addition to cryptocurrencies, the proposed government panel will also focus on blockchain development. The finance ministry is reportedly monitoring the growing interest and activity in cryptocurrency trading in India and gauging supervisory risks.

A senior official at another crypto exchange, who did not wish to be named, was quoted as saying that they were in the final stages of becoming an IndiaTech member. Senior executives at many other crypto exchanges said they were considering the proposal to join IndiaTech but added that their work with the Blockchain and Crypto Assets Council (BACC), a part of the Internet and Mobile Association of India (IAMAI), would continue. All leading crypto exchanges, including WazirX, CoinDCX, ZebPay and CoinSwitch Kuber are currently part of BACC.

The industry expects multiple regulatory bodies to oversee the growth of Indian crypto sector and wants to build a presence across various tech lobby groups for the same. IndiaTech, which has helped local startups on several issues with regulators and the government, last month published a white paper proposing a comprehensive framework to provide regulatory clarity on crypto assets and exchanges in India.

IndiaTech has worked with regulators including Securities and Exchange Board of India (Sebi) to institute reforms in differential voting rights (DVR), listing norms, and reduction in promoter lock-in. It also played a crucial role in helping startups list their services on the government’s e-marketplace, which various departments use to buy products and services. Its core members include Bhavish Aggarwal, cofounder of Ola; Deep Kalra, cofounder of MakeMyTrip; Ravi Mehta, founder of Steadview Capital; and Kavin Bharti Mittal, cofounder of Hike.

In India, there are over 200 blockchain startups with many of them operating in the cryptocurrency space. In 2017, India’s crypto industry was estimated to have a cumulative value of nearly $13 Bn. That was before the Reserve Bank of India’s banking ban on cryptocurrency companies. Since the lifting of the ban, some of India’s noted cryptos startups have reported a 400% increase in trading volumes and user signups

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Crypto Exchanges Coming Together To Lobby For Regulation-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Crypto Exchanges Coming Together To Lobby For Regulation-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Crypto Exchanges Coming Together To Lobby For Regulation-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Crypto Exchanges Coming Together To Lobby For Regulation-Inc42 Media
Crypto Exchanges Coming Together To Lobby For Regulation-Inc42 Media
You’re in Good company