India is working on a crypto regulatory framework based on the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB) that could result in legal legislation in the next five to six months. Sidharth Sogani, CEO of Crebaco, which has worked with government agencies and ministries, told Cointelegraph that the Indian government is working on a five-point crypto legislative framework with a global approach.
India recently concluded the G20 summit on a high with several key economic announcements; however, the most notable decision for the crypto community came in the form of the IMF–FSB joint recommendations for crypto regulations, which India and other G20 nations welcomed.
The IMF–FSB crypto recommendations call for regulating the crypto market rather than a blanket ban. The IMF–FSB recommendations are a set of regulatory guidelines and suggestions that the G20 countries can work on to formulate their independent yet collaborative crypto legislation.
Cointelegraph reached out to Crebaco, a blockchain analytic firm that offered consulting services to several G20 committees and nations, to get insight into India’s crypto approach. Sogani told Cointelegraph that based on their meetings with government officials, India is currently working on a five-point regulatory approach with a focus on global collaboration on certain aspects, such as crypto taxation.
Talking about the five-point framework, Sogani noted that the government is focusing on:
Setting up advanced Know Your Customer (KYC) for crypto companies, which covers the Foreign Account Tax Compliance Act and existing Anti-Money Laundering standards.Crypto platforms would be required to release proof-of-reserve audits on a real-time basis to regulators.A uniform taxation policy across the nations.Crypto exchanges could gain the same status as authorized dealers (similar to banks) under the guidelines of the Reserve Bank of India (RBI).Key positions may be mandatory, such as Money Laundering Reporting Officer for crypto platforms.
Sogani noted that the world has realized that banning crypto is futile and that…
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