Are you planning to start a cryptocurrency business in India and looking for the rules of cryptocurrency regulation there? This article will answer all your questions and explain the key aspects!
India’s regulation of crypto activities
If you are about to open a cryptocurrency exchange in India, you should bear in mind that there is actually no special regulatory framework for cryptoassets. On the opposite, the regulation of cryptocurrency activities can be described as full of uncertainty and confusion in this moment. Factors that influence that reputation are:
- India’s RBI issued a circular that limits the ability of financial companies registered in India and regulated by RBI to conduct operations with cryptocurrencies;
- The Indian parliament might pass the bill prohibiting cryptocurrency activities. The bill is not passed yet, but if it would be, producing, storing, selling, issuing, transferring, and using cryptocurrencies in India will be banned.
Due to uncertainties, many market actors challenged the constitutionality of the circular and sent multiple petitions to India’s Supreme Court with a request to clarify the main views of the circular. Consequently, the Court stated that the circular has no legal power.
When it comes to cryptocurrency regulation, India does not have a dedicated agency for this sphere. Yet, there are several regulators that influence cryptocurrency business in India:
- Electronics and IT Ministry
- Ministry of Finance.
In the recent times multiple public and private Indian associations started an initiative aimed at examining legal aspects of cryptocurrency activities and indicating potential solutions. These are the key initiators:
- Internet and Mobile Communication Association
- Blockchain Foundation
- Digital Asset and Blockchain Foundation
- Blockchain and Digital Currencies Association.
Opening a cryptocurrency company in India has multiple advantages to it nowadays. We will keep our hand on the pulse of India’s cryptocurrency regulation and provide you with the latest updates.
Contact us in COREDO and we will be happy to assist you with the complete process of launching a cryptocurrency business in India. Our specialists are prepared to answer all your questions and consult you about an ICO launch.