IAMAI To Dismantle Blockchain and Crypto Assets Council Over Compliance Issues

Update | 14th July, 06:30 PM

The Internet and Mobile Association of India (IAMAI) in a statement confirmed that it is dissolving the Blockchain and Crypto Assets Council (BACC). However, IAMAI will continue to support activities of the BACC till the end of the month to ensure smooth and proper transition of the sector as well as closure of the ongoing projects.

The association was forced to take the decision as a resolution of the regulatory environment for the industry is still very uncertain, it said. It added that the association would like to utilise its limited resources for other emerging digital sectors to make a more immediate and direct contribution to the social and economic mandate of digital India such as deepening financial inclusion and promoting Central Bank issued Digital Currency (CBDC).

“Our stated belief as industry has always been to have sustainable dialogue with regulators and stakeholders and address concerns for progressive regulations. As an industry we will continue to positively engage with all stakeholders and continue to build emerging tech including web3.0,” Ashish Singhal and Sumit Gupta, chair and co-chair of BACC, respectively, said.

Original Story| 14th July, 02:30 PM

Amid the ongoing regulatory issues in the cryptocurrency industry, the Internet and Mobile Association of India (IAMAI) has decided to dismantle the Blockchain and Crypto Assets Council (BACC). 

IAMAI wants to distance itself from the crypto industry, as per an ET report. However, BACC may continue to operate separately from IAMAI. 

While the issue was discussed in a meeting on Thursday, the exchanges need to sign on it before a final decision is taken, Moneycontrol reported citing a source. However, the date for the second meeting has not been decided yet.

The association was unhappy with the exchanges not complying with codes of conduct set up internally. Over the past few months, the disagreement between the association and crypto founders have only grown. 

The members of the BACC group have not properly followed the demands and requirements of the government that were decided during the meetings with government bodies, the Moneycontrol report added citing a source. Major cryptocurrency exchanges such as WazirX, CoinDCX, and CoinSwitch Kuber, are a part of it.

In terms of compliances, the exchanges only processed the pulling down of TV and digital commercials promoting crypto investing timely. Hence, IAMAI does not want to be associated with the crypto body or discussions going forward.

This development comes at a time when the crypto industry in India is already under the regulatory lenses and facing probes from several agencies.

Considerably, the Enforcement Directorate (ED) has also found that top exchanges did not comply with the know-your-customer (KYC) regulations and anti-money laundering (AML) norms properly while facilitating transactions from other countries.

Last year, BACC appointed Ashish Singhal, founder and CEO of CoinSwitch and Sumit Gupta, cofounder and CEO of CoinDCX, as its co-chairs.  In June 2021, it also set up a self-regulatory code of conduct for crypto exchange members to comply with KYC, tax and other norms.

Under the aegis of IAMAI, BACC represented crypto exchanges and carried out discussions with the government on several industry issues. For example, while the exchanges were facing issues regarding UPI payment methods, BACC sent a letter to NCPI to restore services for crypto players.