BuyUCoin, a major Indian exchange has developed a framework for regulating cryptocurrency in India. The exchange claims that this framework will support all the Indian crypto stakeholders. However, it remains unclear as to which of the stakeholders played a role in the development of the framework or ‘sandbox’, which will be released officially on 2nd October. There are more than 350,000 users of BuyUCoin and it is known for handling billion-dollar transactions. The exchange described the framework as a draft set of propositions, rules, and implementation methods that are all community-driven. This framework will be put forward in front of the Indian government.
The framework was developed after a circular issued by the Reserve Bank of India banning banks and various other financial institutions from having any deals with crypto firms was struck down by the Indian Supreme Court in March. Last week, it was reported that the Indian government was planning to introduce a new bill for banning the trade of cryptocurrencies in the monsoon session. CEO and Co-founder of BuyUCoin, Shivam Thakral stated that this was the first achievement in a long way that involved making cryptocurrencies accessible to the public.
He added that the sandbox’s draft includes the inputs of crypto experts, along with industry insiders. He noted that it will assist the government in developing laws and would also guide budding entrepreneurs and startups in entering the rapidly developing industry. Forbes Senior Contributor and VP at Quantum Economics, Charles Bovaird was very impressed by the ‘sandbox’. He said that banning crypto in India would cause it to fall behind other countries that support it. He said that participants of the industry could lobby Indian authorities and implement some needed crypto regulations in the country.
Crypto Kanoon, an Indian blockchain firm, has also targeted the potential ban on crypto in the country. They compared this ban on crypto with a ban that had been placed on derivatives trading in India back in 1953 that had lasting and damaging consequences for the finance industry. Kashif Raza, the co-founder of the company said that it had taken them nearly 50 years for regulating their commodities. Therefore, the government shouldn’t make the same mistake again and should instead, regulate cryptocurrencies in the same way as commodities to move in the right direction.
He also pointed out that during these 50 years, commodity trading had still continued despite the ban. Since it wasn’t legal, private players were carrying it out illegally and crypto would also have the same fate. Raza said that the longer the government took for coming up with a legal framework, they would just be going back in time and giving mafias the opportunity of carrying out illicit activities. BuyUCoin will reveal the first draft of the ‘sandbox’ on their website on October 2nd and people will be able to access it easily. It remains to be seen how the Indian government will respond to it and whether they will move in favor of cryptocurrencies or not.