Leading Indian technology advocacy group pulls out of cryptocurrency due to regulatory uncertainty

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A leading influential tech lobby group in India is pulling back from promoting cryptocurrencies, causing serious damage to the local ecosystem in the South Asian nation.

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The Internet and Mobile Association of India, an 18-year-old lobbying group, said on Thursday that it is disbanding the Blockchain and Crypto Assets Council, its four-year effort to support and lobby the nascent tech category.

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The association said in a statement that it was forced to make this decision because “the decision of the regulatory framework for the industry is still very uncertain.”

“The Association would like to use its limited resources for other emerging digital sectors that contribute more directly and directly to digital India, in particular by deepening financial inclusion and promoting the digital currency issued by the Central Bank. [CBDC]. Members of the BAKK were informed of this decision at today’s meeting.

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The move is the culmination of years of frustration with the Indian crypto industry, which felt that the influence and outreach of the lobbying group could not produce significant enough results, people familiar with the matter told TechCrunch.

IAMAI believes it is risking its reputation by continuing to push for adoption and support for the cryptocurrency, said two different people familiar with the matter.

Regardless, the demise of the Blockchain and Crypto Assets Council brings the local industry back to the drawing board at a time when local exchanges and other crypto firms seeing a sharp decline in trading volume following India forced taxation of virtual digital assets.

The Indian central bank continues to force banks to interact with cryptocurrency platforms in India, a move that has turned them into a nightmare for firms, people familiar with the matter say.

Many investors and entrepreneurs in the country have been trying for months to find new and better ways, including engaging with Niti Aayog, a powerful think tank, to keep in touch with politicians, people with direct knowledge of the matter said. Niti Aayog has largely resisted getting involved in the crypto industry, sources said.

Indian lawmakers, for their part, have met with several industry representatives over the past year, but so far they believe that the rapid adoption of cryptocurrencies has hurt most consumers and more security measures need to be taken, the sources said. .

Due to uncertainty, the local ecosystem has seen some talent move out of the country, and a growing number of local entrepreneurs building for overseas markets and shunning customer service in India, the world’s second largest internet market.

“Our stated conviction as an industry has always been to have a sustained dialogue with regulators and stakeholders and address the challenges of progressive regulations. As an industry, we will continue to positively engage with all stakeholders and continue to create new technologies, including Web 3.0,” said Ashish Singhal, co-founder and CEO of CoinSwitch Kuber, and Sumit Gupta, co-founder and CEO of CoinDCX. the country’s two leading cryptocurrency exchanges, in a joint statement. The duo has served as chairman and co-chair of BACC.

Credit: techcrunch.com /

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