Cryptocurrency exchanges in India are considering updates to their rules governing the code of conduct to steer clear from the regulators. This action is taken under the elevated inspection of the industry by various regulatory departments that include the ED (Enforcement Directorate), Income tax department, etc.
Major cryptocurrency firms like Coin DCX, Coin Switch Kuber, and also others belonging to the Blockchain and Crypto Assets Council are on the job of updating the Code of Conduct.
Platforms selling cryptocurrencies may include cautions and respective banners that project the buoyant nature of this industry while enrolling fresh customers.
Guidelines are being prepared for measures like customer protection, customers’ fund protection, settlements, etc.
Currently, there is an unavailability of a uniform format regarding the risk warning, terms, and conditions. Measures are being taken to incorporate these also into the guidelines to ensure the warnings received by the customers are also the same.
There is also an ongoing discussion for appointing a tax specialist from any one big four audit firms for conducting audits.
Certain cryptocurrency selling platforms are falling under the radar of DGGI (Directorate General of Goods and Services Tax Intelligence) for alleged evasion of taxes.
The main aim behind altering the code is also to take into account the concerns arisen during the discussions between RBI (Reserve Bank of India) and crypto selling platforms and also in the Parliamentary Standing Committee involving investor protection and controlling the wider industry.
Mainly focused areas by BACC members include cryptocurrency exchanges, DeFi startups, Non-fungible token markets, where steps to improve customer protection needs to be included via the introduction of cautions and regulated tax practice.
The fundamental issue raised by the RBI and the government was whether the investors are aware of the risks involved while investing in cryptocurrencies.
The BACC members have adopted a code of conduct that will serve as a guide during the non-appearance of any formal rules.
Complying to the code may be voluntary while the code of self-regulation serves as a guide to the sectors to employ uniform practices.
Recently, exchanges have tightened their hold on eliminating members who don’t adhere to the code or bringing the industry under the scanner of regulatory bodies.
The latest version of the code will contain the ASCI (Advertising Standards Council of India) instructions on ads related to crypto and is on the verge of release soon.
ASCI has progressed to advanced talks with various stakeholders even the government to frame the crypto advertising instructions that will function to safeguard the customers’ interests. Manisha Kapoor ASCI’s general secretary conveyed that all these guidelines are anticipated to be concluded very soon.
As per ET’s report, the cryptocurrency exchanges had drawn initial data consisting of the do’s and don’ts for ads dealing with cryptocurrencies.
