Indian crypto platforms have the potential to achieve a similar status as authorized dealers, similar to banks, under the guidelines of the Reserve Bank of India (RBI). The Indian government is currently working on a five-point crypto legislature with a global approach, based on the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB). These recommendations call for regulating the crypto market rather than implementing a blanket ban. The government’s focus includes setting up advanced Know Your Customer (KYC) for crypto companies, requiring proof-of-reserve audits on a real-time basis, implementing a uniform taxation policy, granting authorized dealer status to crypto exchanges, and mandating key positions such as Money Laundering Reporting Officer (MLRO) for crypto platforms. The Finance Ministry has confirmed that they will formulate regulations based on the IMF-FSB recommendations in the coming months. Banning cryptocurrencies is no longer an option, as it would be difficult for one country to ban them when other countries are not. This development is seen as an optimistic sign for the crypto industry in India.
