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Indian Regulator Is Dumping Its Only Crypto Exchange: Bane or Boon?

Indian Regulator Is Dumping Its Only Crypto Exchange: Bane or Boon?

In the past, there was only one Indian regulator campaigning for cryptocurrencies and representing the industry to the people of India. Today, this same entity will no longer exist.

Indian authorities are poised to dissolve the Blockchain and Crypto Assets Council, a move seen as a blow to the digital currency industry.

In a statement, the Mobile and Internet Association of India confirmed that it would dismantle BACC. However, the Indian regulator will continue to support BACC’s defense efforts until the end of July to ensure a smooth transition in the industry and the completion of ongoing projects.

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Indian regulator disconnects BACC

BACC has served as an umbrella company for more than a dozen Bitcoin and Blockchain companies to connect with the government. It included well-known cryptocurrency exchanges such as CoinSwitch Kuber, CoinDCX, and WazirX.

The BACC breakup is the latest loss for the Indian crypto industry, which was decimated by harsh new taxes during the crypto winter. This event comes at a time when the cryptocurrency market in India is already under regulatory scrutiny and is being investigated by numerous entities.

Image – ORF

After months of dispute between the exchanges and the agency, IAMAI reportedly wanted to remove BACC so that the Indian regulator could separate itself from cryptocurrencies. The gap between the association and the crypto pioneers has only intensified in recent months.

Things don’t work out between BACC and IAMAI

The exchanges reportedly violated established regulations by prolonging external auditing of particular topics. Therefore, IAMAI noted that such events make the representation of cryptocurrency exchanges problematic.

“It was not working between the exchanges and the industry association following the unequivocal assurance from the Reserve Bank of India that its view on cryptocurrencies had not changed,” a source with knowledge of the situation revealed.

Total BTC Market Cap at $399 Billion on Daily Chart | Source: TradingView.com

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Recently, RBI Governor Shaktikanta Das said that cryptocurrencies pose a “clear threat” to the country’s financial system.

A cryptocurrency official who asked not to be named revealed that the Indian regulator and other affected parties must agree to the decision before it can go ahead. A second meeting, not yet scheduled, is scheduled to reach the final decision.

Meanwhile, Bitcoin is currently trading at $20,950, up 3.5% over the last 24 hours, according to data from Coingecko on Friday. According to data from Coinmarketcap.com, its market share is currently 42.65%, down 0.15% from the previous day.

LinkedIn Featured Image, Chart from TradingView.com

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