Will RBI Encouraged For Authorizing Due To Self-Regulation By Bitcoin Players?
Bitcoin – The Digital Asset and Blockchain Foundation of India has set the mission to make awareness regarding the advantages and disadvantages of cryptocurrencies, create clarity on taxation, liaise with regulators, attracting investors and much more.
It has been four years after the first warning given to the cryptocurrencies users that include Bitcoin by the RBI and they have recently expressed their opinion over the Bitcoin players who have no authorization to deal with the Bitcoin.
However, there is no impact of these warnings on these players who have started the Digital Asset and Blockchain Foundation of India. It is a self-regulatory body who will lay down rules and regimes for the trading of bitcoin and other related digital currencies.
Getting Clarity surrounding Bitcoin
The Bitcoin startups have spearheaded the initiative of the DABFI and follow it from the requirement for ensuring a transparent and orderly rise of the virtual currency market. This foundation is mandated for standardizing the anti-money laundering, suspicious transaction report and knows your customer norms for creating awareness regarding the pros and cons of cryptocurrency.
As per the Bitcoin players, the self-regulation has offered benefits to many industries which don’t come under any regulation. For example, the Code for Self-Regulation in Advertising that is adopted by the Advertising Standards Council of India has a greater acceptance among the regulators, industries, and courts. Nishith Desai Associates, an international law organization hired by the DABFI for assisting it in developing the norms for self-regulation.
Self-regulation only works inside the framework of the present laws, but rather try to make best practices for the members who participates to comply with the established norms. The co-founder of Zebpay Sandeep Goenka says that the cryptocurrencies face many technical risks and the cautionary note should be used against the companies who aren’t following the laws to do legitimate business in a wrong way.