In the past, there was only one Indian regulator that campaigned for crypto and represented the sector before the people of India. Today, that very entity will no longer exist.
Authorities in India are set to disband the Blockchain and Crypto Assets Council, a move seen as a blow to the digital currency industry.
In a statement, the Internet and Mobile Association of India confirmed that it will dismantle the BACC. However, the Indian regulator will continue supporting the BACC’s advocacy efforts until the end of July in order to ensure a smooth transition of the industry and completion of ongoing projects.
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Indian Regulator Pulls Plug On BACC
BACC served as an umbrella company for over a dozen Bitcoin and Blockchain enterprises to connect with the government. It included well-known cryptocurrency exchanges like CoinSwitch Kuber, CoinDCX, and WazirX.
The breakup of BACC is the most recent loss for India’s crypto industry, which has been decimated by harsh new levies during the crypto winter. This event occurs at a time when the cryptocurrency market in India is already being subjected to regulatory scrutiny and is being investigated by many entities.
Image - ORF
After months of dispute between exchanges and the agency, IAMAI reportedly wanted to abandon BACC so the Indian regulator can detach itself from crypto. The disagreement between the association and crypto pioneers has only intensified over the past few months.
Things Not ‘Working Out’ Between BACC & IAMAI
According to reports, the exchanges have allegedly violated established regulations by prolonging external audit of particular issues. Consequently, IAMAI highlighted that such occurrences made it problematic to represent cryptocurrency exchanges.
“It wasn’t working out between the exchanges and the industry association in the wake of the Reserve Bank of India’s unambiguous assurance that its views on crypto had not changed,” a source with knowledge of the situation revealed.
BTC total market cap at $399 billion on the daily chart | Source: TradingView.com
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Recently, RBI Governor Shaktikanta Das stated that cryptocurrencies posed a “clear threat” to the financial system of the country.
A cryptocurrency executive who asked not to be identified revealed that the Indian regulator and other involved parties must agree to the decision before it can be effectively adopted. A second, as-yet-unscheduled meeting is anticipated to produce the ultimate decision.
Meanwhile, Bitcoin is currently trading at $20,950, an increase of 3.5% in the last 24 hours, according to data by Coingecko on Friday. According to data from Coinmarketcap.com, its market share is currently 42.65 percent, a decrease of 0.15 percent from the previous day.
Featured image from LinkedIn, chart from TradingView.com