An Indian exchange is planning to unveil a framework to regulate cryptocurrency transactions in the country—with a view to preventing a full-on ban on trading.
BuyUcoin claimed that its proposals for a sandbox have been drawn up in concert with other major platforms in response to rumors that India’s parliament intends to try and outlaw digital assets for a second time.
According to a news release from the company on Sept. 24, the Supreme Court of India has itself recommended that such a framework be created. In March, it ruled against the Reserve Bank of India, which had stopped financial institutions from providing services related to cryptocurrencies. In the wake of that ruling, the government reportedly proposed a complete ban earlier this month.
BuyUcoin said its proposals will be released in full on Oct. 2, adding that its draft consists of “community-driven rules, propositions and implementation methods.”
“This is the first milestone of a long journey for making cryptocurrency accessible to the masses,” BuyUcoin CEO and co-founder Shivam Thakral said. “The draft of the sandbox is driven by input from crypto experts and industry insiders. This will not only help the government to make laws, but will also guide startups and budding entrepreneurs to enter this blooming industry.”
Helping the economy
According to BuyUcoin, India’s crypto industry has enjoyed “unforeseeable” levels of demand after the Reserve Bank of India’s ban was thrown out—allowing many exchanges to resume services.
One of those supporting the measures is Charles Boviard, the vice president of Quantum Economics. He said:
“Banning crypto trading would cause India to fall behind other nations that allow it. By lobbying the Indian authorities, industry participants can implement much-needed crypto regulations.”
And Madhu Nayakkankuppam, a former Goldman Sachs managing director who now leads a DeFi startup, added: “The solution is to regulate the technology to prevent misuse, not to ban it outright, stifle innovation or encourage a parallel economy.”
In a document previewing its proposals, BuyUcoin said the lack of a “proper regulatory framework that specifically addresses the circulation and trading of virtual currencies is hampering the growth and quick adoption of this new-age technology.”
Explaining the merits of its proposed framework, the exchange added that sandboxes allow innovative firms to test new products under the supervision of regulators—giving them an appreciation of how rules in the real world would affect their operations. “Since the firms would have already operated under a regulatory body, the transition towards operating under actual regulations would be smooth,” the document added.
BuyUcoin said that its full paper will illustrate how India can benefit from cryptocurrencies, explore precedents in other jurisdictions, and argue that digital assets can boost financial inclusivity.
Unfortunately, given the government’s talk of an outright ban, there’s no guarantee that the exchange’s proposals will be greeted warmly by India’s parliament.