India’s first BTC Exchange proposed a new regulatory sandbox over the crypto ban as the community was going through a rough path in regulatory terms. Will this new sandbox initiative change the sentiment? Let’s find out in the latest bitcoin news.
India’s first BTC exchange BuyUCoin pushed for a regulatory sandbox in India as the draft for the proposed sandbox demanded a taxation framework for crypto assets. It also proposed an open platform that will merge the data from the exchange and channel it to Indian regulators by using APIs. The regulators in India mull in the new BTC Ban as BuyUCoin industry leaders have come together to propose an alternative.
Founded in 2016, one of the first exchanges in India, BuyUCoin became a multi-million dollar platform but the volumes evaporated following the banking ban in 2018 as the Supreme court’s recent ruling to overturn the ban which revived the exchange. However, it’s not all good in the Indian crypto sphere as there are talks of a looming blanket ban in the government circles. This time, the exchange wants to have a voice in this conversation.
In collaboration with the industry stakeholders, developers, and regulators, BuyUCoin introduced an open initiative that seeks to form a regulatory sandbox which is a well-defined framework to regulate crypto assets in the country. The draft document named “Regulatory Sandbox: The Key To Cryptocurrency Mass Adoption In India” establishes a clear ground rule for the entire crypto industry which will legitimize the industry and will bring it under the general financial regulatory umbrella. Shivam Thakral the co-founder of the exchange said:
“What we are doing with this sandbox is putting out some self-evaluation protocols which everyone can adopt. Not just the asset marketplaces but also companies [that] enter the industry but are afraid of certain things that could backfire.”
The recent draft document recommended that traders and investors declare the yearly crypto income under a separate provision than the Income Tax Act. BuyUCoin introduced a whitepaper that prescribes the open-source API to track crypto transactions and to maintain a technical framework for AML and KYC Compliance. The draft proposed a platform that will merge the data from exchanges and channel it to the regulators directly. The central bank cautioned the government against legalizing crypto assets and was behind the nationwide ban on fiat-to-crypto banking transactions as Shivam said:
“There are companies who want to enter into the industry via the launch of their utility tokens, which is one of the best use cases of crypto. But they are afraid that launching utility tokens could bring regulatory problems for them. In other nations, there are certain regulations which companies can follow for their work but they are not present in India, which is stifling business and innovative products.”