The proposal hopes to avert a blanket ban that some warn would result in the illegal trade of cryptocurrencies
Major Indian cryptocurrency exchange BuyUCoin has developed a framework to regulate cryptocurrency in India that it claims has the support of “all the Indian cryptocurrency stakeholders”.
However, it is not clear yet which stakeholders helped develop the framework, or ‘sandbox’, which will be officially released on October 2.
BuyUCoin, which has more than 350,000 users and handles billion-dollar transactions, described the framework as a draft set of community driven rules, propositions and implementation methods.
The framework will be presented to the Indian Government. It comes after the Indian Supreme Court in March struck down the Reserve Bank of India's circular banning banks and other financial institutions from dealing with crypto companies. Bloomberg reported last week however the Indian government planned to introduce a new bill to ban the trade of cryptocurrencies during the monsoon session.
“This is the first milestone of a long journey for making cryptocurrency accessible to the masses,” said Shivam Thakral, CEO and co-founder of BuyUCoin.
“This draft of the sandbox is driven by the inputs from crypto experts and industry insiders, and will not only help the government to make laws but will also guide the startups and budding entrepreneurs to enter in this booming industry.”
Cointelegraph has contacted BuyUCoin to find out which stakeholders had contributed to the framework and will update this story when they respond.
The new ‘sandbox’ was praised by Charles Bovaird, VP at Quantum Economics and Forbes Senior Contributor who said:
“Banning crypto trading would cause India to fall behind other nations that allow it. By lobbying the Indian authorities, industry participants can implement the much needed crypto regulations in the country.”
Separately, Indian blockchain focused lawfirm, Crypto Kanoon, has also taken aim at the potential crypto ban, comparing it to the country's ban on derivatives trading in 1953 which had lasting, damaging effects on the finance industry.
"We took 50 years to regulate our commodities,” co-founder Kashif Raza said in a Hindi-language video posted to Twitter. “The government should not repeat the mistake. The first step in the right direction would be to regulate cryptocurrencies as commodities".
Raza points out that during those 50 years, commodities trading did not stop after the ban. Instead, it was being carried out illegally by private players. The same could happen with crypto.
"The longer we take to come up with the legal framework, the further back in time we'll go and give access to the mafias to do illicit activities."
The first draft of the sandbox by BuyUCoin will be released on Oct. 2, 2020 and can be accessed at buyucoin.com/sandbox.
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