Cryptocurrency industry to expand Code of Conduct for taxation, grievance and advertising

The Blockchain and Crypto Assets Council (BACC) is consulting industry experts and stakeholders to expand self-regulation

January 26, 2022

CoinSwitch Kuber, CoinDCX, Unocoin and WazirX were among the participants in the discussion.

A uniform framework for taxation and legislative provisions to support startup growth were proposed.

Curbing misinformation and educating stakeholders about market risks were the additions to advertising protocols.

A delegated authority and 48-hour grievance procedure in the event of a cybercrime have been proposed.

Cryptocurrency has seen increased adoption in India as evidenced by the growth of exchanges like CoinSwitch Kuber and CoinDCX into unicorns as well as the emergence of 380 cryptocurrency start-ups and 12 Non Fungible Token marketplaces by November 2021. As the government is yet to propose regulations for the cryptocurrency sector, the Blockchain and Crypto Assets Council (BACC) has incorporated insights from experts as to how the existing regulatory ‘Code of Conduct’ can be revised. Some of the participants in the exercise were CoinSwitch Kuber, CoinDCX, Unocoin and WazirX. The regulations proposed by the participants were broadly categorized along the lines of: (i) taxation and compliance, (ii) consumer protection and education, (iii) best practices in advertising. 

The participants proposed broader legislative provisions for uniform taxation and startup growth. The exacting Code of Conduct is to be expanded in order to include provisions curbing the spread of misinformation and to increase awareness through advertising about the risk factors associated with investing in cryptocurrency. In the interest of customer protection, the participants also proposed the creation of a 48 hour grievance window and a delegated authority to take on cryptocurrency hacking and crimes as and when reported by users.

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