- The cryptocurrency policy body of India has been disbanded.
- Indian crypto exchanges are struggling to recover from the market crash and a strict cryptocurrency tax structure.
- Indian authorities are skeptical about cryptocurrencies’ potential to revolutionize payments, financial services, and financial inclusion.
According to recent reports, the Internet and Mobile Association of India (IAMAI) concluded that it is time to disband the Blockchain and Crypto Assets Council (BACC). However, as of the time this article was written, the IAMAI had not yet made any kind of official comment on the matter.
The fact that IAMAI has distanced itself from BACC may prove to be another blow to crypto exchanges and enterprises in India that are already having a difficult time recovering from the market fall and the installation of a stringent tax system for cryptocurrencies.
Many factors contributed to the decision, including lack of maturity among crypto founders, inaction around critical issues despite being chastised by India’s parliamentary finance committee, and the creation of an environment that was toxic, a source with knowledge of the internal consultation process has said.
Since its inception, BACC worked tirelessly to unite India’s crypto community under one roof. The committee’s primary focus used to be on public policy, and it has collaborated closely with legislators, regulators, and industry representatives.
All of the council’s member crypto exchanges have signed on to a self-regulatory code of conduct that was developed in conjunction with the industry’s main stakeholders.
Indian authorities, in contrast to their colleagues in other countries, have been dismissive of the potential of cryptocurrencies to revolutionize payments, financial services, and financial inclusion.
Unfortunately for crypto enthusiasts, BACC will now no longer be operating. The business community will be without a significant policy lobbying arm when BACC is dissolved.