Crypto launches a new rule to give template for India
The new regulation can provide a template for cryptocurrency standards in India. The regulatory landscape has mostly been vacant after the Supreme Court subdue a Reserve Bank of India ban on crypto-related cost in March 2020
A fresh set of concepts projected by the US Financial Crimes Enforcement Network (Fincen) calls for US exchanges to study transfers of cryptocurrency such as Bitcoin above $10,000 to non-custodial? notecase to Fincen.?
Non-custodial wallets are secluded wallets such as paper wallets or hardware which are retained by users straight. These wallets are not hosted by exchanges and exchanges do not have the personal keys of such billfold. Exchanges also have to realize Know your Customer (KYC) processes for transfers to non-custodial wallets above $3,000 and maintain records of these.
The FinCEN rules are unlocked for public remarks and the last date for furnish feedback is 4 January 2021.
As reported by experts, the new rules can give a template for cryptocurrency regulation in India. The restrictive landscape has mostly been vacant after the Supreme Court repressed a Reserve Bank of India ban on crypto-related payments in March 2020.
The FinCEN concept will not straightaway affect Indian users, even so, it can cater a template for Indian regulators, said Kashif Raza, co-founder, Crypto Kanoon, a legitimate content portal for crypto users in India.
Arjun Vijay, co-founder of the Chennai founded Giottus Cryptocurrency Exchange hold. The rule affects US exchanges and US individuals. But if it is taken by international bodies like the FATF, it will have a heading on India. I don't believe this will shift enterprise outside the US. Exchanges outside the US are already on guard of accepting US customers due to the rigorous regulation in the US," he said.
There is no legislative framework for cryptocurrency standards in the country.
CBW - External Analyst