Indian Crypto Exchange BuyUCoin, Proposes a New Regulatory Framework to Avoid the Crypto Ban
September 25, 2020 9:05 am
To regulate cryptocurrency in India, major Indian cryptocurrency exchange BuyUCoin has developed a framework which will be officially released on October 2 and that it claims has the support of all the Indian cryptocurrency stakeholders.
Though, it is not clear yet which stakeholders helped develop the framework, or ‘sandbox’. The proposal hopes to avoid a blanket ban that some warn would result in the illegal trade of cryptocurrencies.
BuyUCoin, which has over 350,000 users and controls billion-dollar transactions, defined the framework as a draft set of community-driven rules, propositions and implementation methods.
The framework will be proffered to the Indian Government. It comes after the Indian Supreme Court of India has struck down the Reserve Bank of India’s (RBI) controversial ban on banks’ dealings with crypto-related firms and other financial institutions from dealing with crypto companies.
The Indian government planned to introduce a new bill to ban the trade of cryptocurrencies during the monsoon session, reported by Bloomberg on September 15, 2020.
Another report from the local news outlet Economic Times about the further development of the proposal and the possible introduction of it as the law has only caused more panic and anxiety within the crypto community.
“This is the first milestone of a long journey for making cryptocurrency accessible to the masses. This draft of the sandbox is driven by the inputs from crypto experts and industry insiders, and will not only help the government to make laws but will also guide the startups and budding entrepreneurs to enter in this booming industry.”-Shivam Thakral, CEO and co-founder of BuyUCoin.
Stakeholders contributed to the framework
The new ‘sandbox’ was praised by Charles Bovaird, VP at Quantum Economics and Forbes Senior Contributor who stated:
“Banning crypto trading would cause India to fall behind other nations that allow it. By lobbying the Indian authorities, industry participants can implement the much-needed crypto regulations in the country.”
Separately, Crypto Kanoon, Indian blockchain-focused law firm has also aimed at the potential Crypto ban, comparing it to the country’s ban on derivatives trading in 1953 which had lasting, damaging effects on the finance industry.
Kashif Raza, the co-founder of Crypto Kanoon, stated in a Hindi-language video posted to Twitter “We took 50 years to regulate our commodities. The government should not repeat the mistake. The first step in the right direction would be to regulate cryptocurrencies as commodities”.
Raza points out that during those 50 years, commodities trading did not stop after the ban. Instead, it was being carried out illegally by private players. The same could happen with crypto.
“The longer we take to come up with the legal framework, the further back in time we’ll go and give access to the mafias to do illicit activities.”
On October 2, the first draft of the sandbox by BuyUCoin will be released and can be accessed at buyucoin.com/sandbox.