India’s technology advocacy body IAMAI dissolves blockchain and digital assets
The Blockchain and Crypto-Assets Council (BACC), the advocacy group representing the interests of Indian digital asset firms, has been disbanded by its parent body, the Internet and Mobile Association of India (IAMAI).
In a statement reported by local news agency Indian Express, IAMAI said it was forced to take the decision due to the ongoing regulatory uncertainty surrounding the digital asset sector in India.
“The association was forced to take the decision in light of the fact that a resolution of the regulatory environment for the industry remains highly uncertain,” the statement said.
The body added that it will now channel the resources freed up by the resolution into other new digital sectors such as central bank digital currency (CBDC) and deepening financial inclusion. These sectors can “make a more immediate and direct contribution to digital India”, the statement added.
IAMAI has informed members of the BACC of the decision and will continue to support the entity until the end of the month to ensure a transition and closure of ongoing projects.
In a joint statement, BACC chair Ashish Singhal and co-chair Sumit Gupta said the digital assets industry will continue to engage in dialogue with regulators and Web 3.0 stakeholders.
“Our stated belief as an industry has always been to have sustainable dialogue with regulators and stakeholders and address concerns about progressive regulation,” they said.
India is not giving the digital asset industry any concessions
While IAMAI has been around for 13 years and has represented the interests of top internet companies and technology platforms, it only created the BACC entity four years ago. According to internal sources, IAMAI had considered closing BACC for some time due to differences in the digital assets industry and IAMIA’s views.
In particular, one project the BACC member firms, including exchanges like CoinSwitch Kuber, WazirX, CoinDCX, Zebpay, BitBNS, Vauld, Chingari and Mudrex, will try to end is an attempt to get NCPI to restore UPI support for them.
Apart from the NCPI hurdle and the market slowdown faced by the digital assets industry, India has been gradually tightening the regulations on the digital assets industry. The government has introduced a 30% income tax and a 1% TDS tax scheme for the market.
To add to the problems, India’s anti-graft agency is also going after stock market executives on charges of violating foreign exchange laws and abetting crime.
See: BSV Global Blockchain Convention panel, Blockchain in the Middle East and South Asia
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