- Cryptocurrency exchange BuyUcoin pushes for a cryptocurrency regulatory sandbox in India.
- The draft for the proposed sandbox demands a taxation framework for cryptocurrencies.
- It also proposes an open platform that would merge data from exchanges and channel it to Indian regulators using APIs.
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As regulators in India mull over a new Bitcoin ban, the country’s first crypto exchange, BuyUcoin, and industry leaders have come together to propose an alternative.
Indian Government Balances Bitcoin Ban
Founded in 2016, one of India’s first crypto exchanges, BuyUcoin, quickly became a multi-million dollar platform. Though volumes evaporated following the banking ban in 2018, the Supreme Court’s recent ruling to overturn the ban has revived the exchange.
But all is not great in the Indian crypto sphere, and there are talks again of a looming blanket ban in government circles. This time, though, BuyUCoin wants to have a voice in these talks.
In collaboration with industry stakeholders, thought leaders, entrepreneurs, developers, and regulators, BuyUcoin introduced an open initiative that seeks to form a regulatory sandbox– a well-defined framework to regulate cryptocurrencies in the country.
The draft document titled “Regulatory Sandbox: The Key To Cryptocurrency Mass Adoption In India” establishes clear ground rules for the crypto industry, which could legitimize the industry and bring it under the general financial regulatory umbrella.
“What we are doing with this sandbox is putting out some self-evaluation protocols which everyone can adopt. Not just the asset marketplaces but also companies [that] enter the industry but are afraid of certain things that could backfire,” said CEO and co-founder of BuyUcoin, Shivam Thakral, in a video post.
The recent draft document recommends that traders and investors declare their yearly crypto income under a separate provision than the Income Tax Act.