Crypto industry leaders in India have come together to push for a regulatory sandbox for crypto regulations in the country. The draft for the proposed sandbox demands a taxation framework for cryptocurrencies. The Supreme Court of India earlier this year overturned the central bank’s blanket ban on cryptocurrency. In collaboration with industry stakeholders, thought leaders, entrepreneurs, developers, and regulators, crypto exchange BuyUcoin introduced an open initiative that seeks to form a regulatory sandbox– a well-defined framework to regulate cryptocurrencies in the country. With the Supreme Court’s decision to overturn the crypto ban, startup jobs in India have increased in the crypto sector.
The regulatory sandbox establishes clear ground rules for the crypto industry.
The draft document titled “Regulatory Sandbox: The Key To Cryptocurrency Mass Adoption In India” establishes clear ground rules for the crypto industry. The regulatory sandbox could legitimize the industry and bring it under the general financial regulatory umbrella. The recent draft document recommends that crypto traders and investors declare their yearly crypto income under a separate provision than the Income Tax Act. The crypto exchange also introduced a whitepaper that prescribes open-source APIs to track crypto transactions and maintain a technical framework for AML and KYC compliance.
Crypto regulations remain in a grey area in most countries.
Crypto-related regulations in most countries remain in a grey area. However, some countries have embraced the tech and innovation behind crypto and have provided the industry with favorable regulations. South Korea earlier this year passed legislation making crypto trading legal in the country. Crypto regulations in the United States are also unclear in the most number of states. Earlier, US CFTC said that they are planning on making a ‘holistic framework’ for the crypto industry. Earlier, it was reported that Indian lawmakers are planning to ban the use of crypto entirely in the country.