The Internet and Mobile Association of India (IAMAI) decided to disband Blockchain and Crypto Asset Council (BACC), citing regulatory uncertainty.
IAMAI has decided to distance itself from BACC, which was formed in 2017 to represent the interest of Crypto exchanges and maintain an amicable relationship between the crypto industry and regulatory authorities.
Big names like WazirX, CoinDCX, CoinSwitch Kuber, Zebpay, BitBNS, and other blockchain and Non-Fungible tokens have been a part of BACC, which was formed to represent the crypto industry’s point of view to the regulatory body like Reserve Bank of India (RBI).
The Central Bank’s stance on cryptocurrency hasn’t been positive. RBI Governor Shaktikant Das had stated that cryptocurrencies “are a clear danger.”
In a statement, IAMAI stated, “The association was forced to take the decision in the light of of the fact that a resolution of the regulatory environment for the industry is still very uncertain and that the association would like to utilise its limited resources for other emerging digital sectors, which make a more immediate and direct contribution to the social and economic mandate of digital India, notably, deepening financial inclusion and promoting central bank-issued digital currency.”
However, IAMAI will support BACC till the end of the month for a smooth transition.
BACC is a self-regulatory body representing the interest of the crypto industry. It has set some standards and codes of conduct to be followed by all crypto companies.
IAMAI and BACC have represented themselves on behalf of the crypto industry to the finance ministry and the Government amid the stringent action and stricter tax law.
However, trouble has started brewing between the two lately, and IAMAI has been distancing itself from BACC.
The members of BACC were informed about the decision at the meeting held on Thursday. And with all the trouble brewing for crypto industry, it was an inevitable decision by IAMAI
The crypto industry has been facing the heat of strict regulations imposed by the Government of India.
Due to this, many have shifted their base to countries like UAE, which are promoting themselves as crypto-hub.
If this wasn’t enough, the Reserve Bank of India has constantly been reminding Government to put a curb on cryptocurrency labelling it as a potential threat.
BACC however, will continue to work separately from IAMAI and constitute a new body soon.