Top Indian technology lawyer group drops crypto over regulatory uncertainty – TechCrunch
India’s leading influential technology lobby group is turning its back on crypto in a major setback for the South Asian nation’s local ecosystem.
The Internet and Mobile Association of India, an 18-year-old lobbying group, said Thursday it was dissolving the Blockchain and Crypto Assets Council, its four-year effort to support and lobby for the nascent technology category.
The association said in a statement that it was forced to make the decision because “a solution to the regulatory environment for the industry is still very uncertain.”
“The association wants to use its limited resources for other new digital sectors, which make a more immediate and direct contribution to the digital India, in particular to deepen financial inclusion and promote central bank-issued digital currency. [CBDC]. Members of BACC were informed of the decision at a meeting held here today, it is said.
The move is the culmination of years of frustration for the Indian crypto industry, which has felt that the lobby group’s influence and reach have not been able to deliver enough landmark results, people familiar with the case told TechCrunch.
IAMAI felt they were risking their reputation by continuing to push for adoption and support for crypto, said two different people familiar with the matter.
In any case, the liquidation of the Blockchain and Crypto Assets Council brings the local industry back to the drawing board at a time when local stock exchanges and other crypto firms are seeing a sharp decline in trading volume in the wake of India enforcing taxes on virtual digital assets.
The Indian central bank continues to force its hand on banks from engaging in crypto platforms in India, a move that has made on-ramp a nightmare for companies, said people familiar with the matter.
Many investors and entrepreneurs in the country have struggled for months to find newer, more effective ways, including engaging with Niti Aayog, a powerful think tank, to get in touch with decision-makers, said sources with direct knowledge of the case. Niti Aayog has largely resisted involvement in the crypto industry, sources said.
Indian lawmakers, for their part, have faced several industrial faces over the past year, but so far they are of the opinion that the rapid introduction of crypto-commerce has hurt most consumers and more security measures should be put in place, the sources said. .
In the wake of the uncertainty, the local ecosystem has seen some talent move outside the country and an increasing number of local entrepreneurs are building for foreign markets and avoiding serving customers in India, the world’s second largest internet market.
“Our firm belief as an industry has always been to have a sustainable dialogue with regulators and stakeholders and address concerns about progressive regulation. As an industry, we will continue to engage positively with all stakeholders and continue to build emerging technologies including Web 3.0,” he said. Ashish Singhal, co-founder and CEO of CoinSwitch Kuber, and Sumit Gupta, co-founder and CEO of CoinDCX, in a joint statement. The duo served as chairman of the board and co-chairman of BACC.
