BENGALURU: In a huge blow to the cryptocurrency industry in India, the Internet and Mobile Association of India (IAMAI) has dissolved the Blockchain and Crypto Assets Council (BACC), which represents crypto exchanges in the country.
Sources aware of the development said this move is a dampener for the industry, which is already battling market volatility and 1% TDS, which has affected the trading volumes. Already, banks have refused to work with crypto exchanges, and this move shows crypto regulations are likely to be adverse for the crypto ecosystem.
IAMAI, which has been representing sectors such as online gaming, digital payments, blockchain, big data and health tech, among others, said it took the decision as a resolution of the regulatory environment for the industry is still very uncertain.
IAMAI wants to utilise its resources for other emerging digital sectors. Leading crypto exchanges such as WazirX, and CoinSwitch Kuber are members of the BACC group, which has been nurtured by IAMAI for four years now. It is still unclear whether BACC will function on its own with its existing members or will be dissolved. The BACC has introduced many guidelines for crypto trading. The industry representative body recently came up with advertising guidelines and all major exchanges are working with the BACC.
“With the recent market crash, the evolving regulatory environment, and additional clarity from the RBI and finance ministry, the industry now has a clear indication of the government’s stance and future plans,” said Gaurav Mehta, founder, of Catax, an online crypto tax solution.
He added that the dissolution of the BACC is an acknowledgement that the belief about cryptocurrencies has been erroneous, and the voice was merely an echo of exchanges’ interest in India. “Hereafter, crypto exchanges would have to wage their battle without an ally,” he said. Meanwhile, IAMAI said that it will continue to support activities of the BACC till the end of this month.