India is the first country to propose clear regulation for the cryptocurrency market and wants all users to connect their electronic wallets to digital identities, Aadhar ID, so they can be easily identified, TNW writes.
Ajeet Khurana, the head of the Internet & Mobile Alliance's Blockchain and Cryptocurrency Committee (IAMAI), told the Economic Times that the group, which includes seven exchanges of cryptocurrency, plans to submit a proposal to the government to help agencies to look up the data of all users and track their activity through Aadhar ID or Permanent Account Numbers (PAN). While the PAN has been used for decades to allow Indian citizens and foreign nationals to carry out monetary transactions in the country, the digital ID system, Aadhar ID, is more recent and covers 90% of Indian citizens.
Ajeet Khurana's decision to propose such regulation in India's internal cryptocurrency exchanges comes as a result of a statement by the country's finance minister earlier this month, stating that these exchanges do not use legal trade mitigation and will be used to fund illegal activities.
In addition, India's tax authorities have issued notifications to approximately 100,000 investors, asking them to disclose the gains from cryptocurrency trading. Once the regulatory proposal is sent to the government, which will oversee this week's trading activity, it is expected that the first talks on this issue will take place next month.
Rupee is the only digital currency traded in India. Now with the cryptocurrency evolution the focus did switch, but still we see signs of normality through rather regulating the market, instead of forbidding it. And I must say that this is a good approach and should put back the increase back on and other countries are to follow this model. So, good news in my opinion and let's hope that the technology potential is once again appreciated at its increasing value.