indian government

Crypto Exchange Okx Shuts Down Services in India Due to Regulations — Advises Users to Withdraw All Funds

March 22, 2024 Bitcoin.com

Indian Supreme court rejects crypto petition, highlights legislative nature

November 11, 2023 Coin Telegraph

Listening to the plea, the bench headed by the Chief Justice of India (CJI) remarked that the petitioner’s demands are more legislative in nature.

The Indian Supreme Court declined to consider a Public Interest Litigation (PIL) that aimed to establish regulations and a framework of guidelines for cryptocurrency trading in India.

According to a report, the bench headed by the Chief Justice of India (CJI), after listening to the plea, remarked that the petitioner’s demands are more legislative in nature. Given the petition’s character, the bench, including Justice JD Pardiwala and Manoj Misra, dismissed the plea. The Supreme Court noted that despite the petitioner filing a PIL requesting regulations and guidelines for cryptocurrency and its trading, the underlying objective is to secure bail.

Significantly, Manu Prashant Wig, the petitioner, is presently held in custody by the Delhi Police in connection to a cryptocurrency case. The Economic Offence Wing (EOW) of the Delhi Police filed a case in 2020, accusing Wig of enticing individuals to invest in crypto with promises of higher returns.

According to the report, Wig served as one of the directors at Blue Fox Motion Picture Limited, enticing individuals to invest. Subsequently, victims reported the fraud to the Economic Offence Wing (EOW) in Delhi. A total of 133 investors or victims who had invested their funds, filed a case stating Wig deceived them.

Seeking relief from judicial custody, the petitioner, Manu Prashant, filed a PIL demanding regulations and a framework for crypto trading in India. Despite the Supreme Court rejecting the PIL, the bench permitted the petitioner, currently in jail, to pursue legal remedies and approach other relevant authorities.

During the court hearing, the bench led by CJI Chandrachud advised the petitioner to approach a different court for bail. Expressing reservations about the plea for crypto trading regulations, the court noted that such demands fall within the legislative domain. The court highlighted its inability to issue directives under Article 32 of the Indian Constitution.

The status of crypto trading in India remains debatable due to the absence of standardized rules, guidelines, or specific frameworks for handling cryptocurrencies. India is reportedly developing a cryptocurrency regulatory framework, drawing from joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The outcome could manifest as legal legislation within the next five to six months, as per Cointelegraph’s recent coverage.

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Indian state governments spur blockchain adoption in public administration

September 19, 2023 Coin Telegraph

Asia

Numerous initiatives by local and state governments in India — from data management systems to verifiable certificate issuances — currently use blockchain technology.

Ever since Bitcoin (BTC) popularized blockchain technology worldwide, the tech has found its way into myriad processes, from finance to public administration.

What started as a flex statement for early adopters has now become a way of revamping legacy systems and improving immutability, transparency and decentralization.

Despite its proven real-world use cases, most government agencies continue to take a cautious approach to adopting and infusing blockchain into their paper-based processes, given its predominant link to the cryptocurrency ecosystem.

However, a change of heart is underway as emerging economies see blockchain as a rare opportunity to establish a trust-based system for society.

While still reluctant to legitimize cryptocurrencies fully, India has generally accepted blockchain technology.

Numerous initiatives by local and state governments in India — ranging from data management systems to verifiable certificate issuances — currently use blockchain technology at their core.

India’s expedited blockchain adoption is supported by an active developer and startup community, which builds custom solutions to tackle specific use cases.

Cointelegraph’s pursuit to decipher India’s affinity for blockchain led to a conversation with Ankur Rakhi Sinha, the co-founder and CEO of Airchains, a Web3 startup focused on a middleware software-as-a-service (SaaS) platform.

Speaking to Cointelegraph, Ankur explained India’s massive appetite for blockchain and how elected leaders have been driving the change.

Cointelegraph: What is the primary driver behind India’s blockchain adoption spree?

Ankur Rakhi Sinha: The driving force behind India’s blockchain adoption is the multitude of benefits it offers to enterprises and institutions. Within their ecosystems, organizations recognize the immense benefits of incorporating blockchain technology. It addresses various challenges at different levels, such as enhancing transparency, traceability and establishing trust.

These factors contribute to the growing interest and widespread adoption of blockchain within India.

India is one of the fastest-growing blockchain markets globally, with over 56% of Indian businesses reporting an inclination toward adopting blockchain technology. With a developer base of a whopping 10 million, the Indian talent pool has been recognized globally by leading Web3 firms with the aim of fostering Web3 innovation and growth.

CT: In your discussions with the government agencies, are there any talks of crypto adoption?

ARS: No, currently, regulatory clearances surrounding cryptocurrency adoption are still uncertain. However, government agencies are actively exploring various avenues and seeking improved regulations. They are open to the idea and are diligently working toward creating a conducive environment for cryptocurrency adoption.

CT: Can you share any data and/or use cases that show improvements from older systems?

ARS: Yes, our recent collaboration with the New Town Kolkata Development Authority (NKDA) showcases the real-life adoption of blockchain. With a vast expanse of 27,000 acres of land and a staggering 50,000 NFTs [nonfungible tokens] representing one million ownerships, the NKDA’s adoption of NFTs for land mutation [the transfer of property titles] has revolutionized the traditional approach, and these initiatives demonstrate the growing recognition and commitment to harnessing the potential of blockchain to drive innovation and efficiency across various sectors.

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CT: Is India betting big on blockchain? Are there any government initiatives that help drive this cause?

ARS: Yes, India is definitely betting big on blockchain. Various government agencies and bodies within India are actively seeking to collaborate with blockchain solutions. While there is yet to be a high-level blockchain initiative from the government of India thus far, there is a strong demand from government entities that Airchains is actively addressing. One of the profound use cases of blockchain adoption includes the remarkable first-ever NFT-based land mutation in India.

Additionally, in January 2020, NITI Aayog’s two-part report titled “Blockchain: The India Strategy” made it apparent that while regulations regarding cryptocurrencies and other digital assets are under consideration, the government is significantly aware of the promise of core blockchain technology to transform various systems.

Several Indian government bodies are supportive of blockchain technology adoption and have collaborated with Airchains to incorporate novel blockchain-based systems ensuring accountability and security. The Raigarh District Authority has collaborated with us to create a blockchain-based tree plantation monitoring system for the betterment of CSR [corporate social responsibility] initiatives, whereas the Firozabad Police Department worked with us to create a blockchain complaint management system to prevent tampering of reports.

CT: What type of understanding do Indian officials have about blockchain and associated tech?

ARS: Indian government agencies, state governments and bureaucrats possess a profound understanding of blockchain and Web3 technologies. They are well-versed in the latest developments and trends within the blockchain space, including liquidity, private chains and zero-knowledge rollups. [...] Their comprehension of blockchain extends beyond surface-level knowledge, as many officials have in-depth insights into how the technology functions. While some officials contemplate how blockchain should ideally operate, others are actively exploring ways to leverage this technology to address their unique challenges.

CT: What is the role of blockchain in India’s overall growth?

ARS: Blockchain technology is poised to play a huge role in India’s future growth, propelling the nation to a prominent position on the global stage. The increasing number of developers, enterprises and institutional use cases emerging in India underscores the significant growth potential of blockchain in the country. As blockchain adoption continues to expand, it is expected to drive innovation, foster economic development and create new opportunities across various sectors.

Another key push to India’s growth has been the entry of various global Web3 players into the Indian developer market. India is home to 450+ Web3 startups and has received over $1.5 billion in investments between 2021 and 2022, according to a 2022 NASSCOM Indian Web3 Landscape Analysis report.

Additionally, the report also highlighted that 11% of global Web3 talent is in India, making it third worldwide. Blockchain in India has the potential to contribute significantly due to the vast developer talent and the active Web3 community present in the country.

CT: We have seen numerous instances of state-wide blockchain implementations over the past three years. Are there any nationwide implementations of blockchain in India or any such plans for the future?

ARS: Yes, there have been significant discussions at various levels regarding nationwide blockchain implementations in India. For instance, organizations such as the National Payments Corporation of India and the Unified Payments Interface are exploring the potential of blockchain technology and conducting tests. Public sector banks are also actively experimenting with blockchain to determine how they can harness its capabilities.

These initiatives indicate a strong likelihood of nationwide blockchain use cases emerging in the near future. Airchains recently executed a state-wise use case with NKDA, and we are currently working on multiple state-level use cases that have the potential to impact the nation as a whole.

CT: How do you convince a government body to accept a new system?

ARS: Government [...] bodies are actively interested in adopting blockchain solutions to address their specific challenges. However, they emphasize the importance of operating within regulatory frameworks. Demonstrating transparency, efficiency and improved outcomes is key to gaining government support in the development journey.

CT: Which countries are ahead of India when it comes to wide-scale blockchain adoption? What measures must a country take to expedite blockchain adoption?

ARS: There are several countries in Central America that are actively pursuing wide-scale blockchain adoption within their ecosystems. India, being a large nation, is actively striving to accelerate the adoption of blockchain technology through numerous use cases. The country has established itself as a center of excellence in blockchain, with multiple agencies exploring various applications.

To expedite progress, implementing clear regulations is crucial. This includes defining guidelines for blockchain implementation and determining permissible use cases, which will facilitate faster execution and broader adoption.

CT: Can home-grown blockchain technology be used in off-shore use cases?

ARS: Many projects originating from India, such as Polygon and various layer-1 and layer-2 solutions, have gained global recognition. Airchains has also successfully collaborated with government agencies globally, including in Central America and Europe. Currently, there are several offshore projects in the pipeline for Airchains, scheduled to be completed within the next six to seven months. Utilizing home-grown blockchain technology for offshore use cases is indeed a goal being pursued.

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CT: How does funding work? What are your investors looking for?

ARS: Investors primarily seek scalability and feasibility in blockchain adoption, among other key factors. Funding in the blockchain space typically involves investors who believe in the potential of the technology and its ability to bring about transformative changes.

CT: What is your advice to fellow blockchain entrepreneurs in India?

ARS: My advice [...] is to focus on building a wide range of use cases and driving blockchain adoption to a higher scale. By creating innovative solutions and demonstrating the real-world benefits of blockchain technology, we can accelerate its adoption and drive positive change in various industries.

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India working on 5-point crypto legislation as ban is ruled out

September 11, 2023 Coin Telegraph

Coin Telegraph

Indian crypto platforms could attain similar status as authorized dealers (similar to banks) under the guidelines of the Indian Central Bank RBI.

India is working on a crypto regulatory framework based on the joint recommendations of the International Monetary Fund (IMF) and the Financial Stability Board (FSB) that could result in legal legislation in the next 5-6 months. Siddharth Sogani, the CEO of CREBACO that has worked with government agencies and ministries, told Cointelegraph that the Indian government is working on a five-point crypto legislature with a global approach.

India recently concluded the G20 summit on a high with several key economic announcements, however, the most notable decision for the crypto community came in the form of IMF-FSB joint recommendations for crypto regulations that India and other G20 nations welcomed.

The IMF-FSB crypto recommendations call for regulating the crypto market rather than a blanket ban approach. The IMF-FSB recommendations are a set of regulatory guidelines/suggestions that the G20 countries can work on to formulate their independent yet collaborative crypto legislative.

Cointelegraph reached out to CREBACO, a blockchain analytic firm that offered consulting services to several G20 committees and nations to get insight into India's crypto approach. Sogani, the CEO of the firm told Cointelegraph that based on their meetings with the government officials, India is currently working on a five-point regulatory approach with a focus on global collaboration on certain aspects such as crypto taxation.

Talking about the five-point framework, Sogani noted that the government is focusing on:

Setting up advanced Know Your Customer (KYC) for crypto companies which covers the Foreign Account Tax Compliance Act (FATCA), and Existing anti-money laundering Standards.
Crypto platforms would be required to release Proof-of-reserve audits on real real-time basis to regulators.
A uniform taxation policy across the nations.
Crypto exchanges could gain the similar status of authorized dealers (similar to banks) under the guidelines of the Reserve Bank of India (RBI).
Key positions may be mandatory such as Money Laundering Reporting Officer (MLRO) for crypto platforms.

Sogani noted that the world has realized that banning crypto is futile and several nations are moving towards a regulatory approach rather than a blanket ban. The likes of the United States and Europe have already got some specific crypto regulations in place while India took the taxation route. He added:

“Regulations are inevitable, this ecosystem has grown substantially strong without regulations. Just imagine how well would it grow with proper regulations in place. Also, regulated markets reduce the risks of scams and illicit activities.”

India has called for a global approach to crypto regulations for a while, with Prime Minister Narendra Modi reiterating the same during the recently concluded G20 summit. One of the executives at the Finance Ministry confirmed that they have taken the IMF-FSB crypto recommendations and will focus on formulating regulations around it in the coming months.

The Finance Ministry executive said that IMF-FSB recommendations offer a good “framework to decide our own way forward. The foundation is ready, beyond that how much we want to go it is for us to decide in the coming months and then take a call."

The official also cleared that banning cryptocurrencies is no longer an option and noted that “If you want to ban it (cryptocurrency), go ahead and ban it. But if the rest of the countries are not banning it, it will be extremely difficult for one country to ban it.”

India currently doesn’t have any specific crypto regulations in place, though the country imposed a 30% tax on crypto gains in 2022. However, the joint crypto recommendations and the Finance Ministry’s assurance that a crypto framework could materialize into a formidable legislation in the coming few months is an optimistic sign for the crypto industry in the country.

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Indian central bank-backed NPCI begins blockchain recruitment

September 4, 2023 Coin Telegraph

Coin Telegraph

Singapore, Malaysia, the UAE, France, Benelux countries, Nepal and the U.K. have adopted the NPCI’s UPI payments system to varying degrees.

The National Payments Corporation Of India (NPCI) — an initiative led by the Reserve Bank of India (RBI) and 247 Indian banking companies — is on the lookout for a seasoned blockchain technologist to head and investigate opportunities for blockchain in current-day payment systems.

NPCI owns and operates the Unified Payments Interface (UPI), India’s home-grown instant payment system that facilitates interbank peer-to-peer and person-to-merchant transactions. A recent LinkedIn job posting confirmed NPCI’s ongoing drive to hire a head of blockchain.

*NPCI’s job posting for a head of blockchain. Source: LinkedIn*

The ideal candidate will be a seasoned technologist with at least six years of experience in developing and implementing blockchain, who will be primarily tasked with identifying “avenues wherever blockchain-driven solutions can be used.”

The senior leadership position also demands an in-depth technical understanding of multiple blockchain platforms and previous experience working on at least two pilot blockchain projects. UPI’s success in fortifying the Indian payments landscape has garnered interest from other jurisdictions.

Singapore, Malaysia, the United Arab Emirates, France, Benelux countries, Nepal and the United Kingdom have adopted the UPI payments system to varying degrees. Infusing blockchain elements in the UPI can potentially expose the technology to millions of users in an instant, thus reaffirming the capability of the underlying tech that has continued to power Bitcoin (BTC) for nearly 14 years.

The NPCI job application had over 200 applicants at the time of writing. NPCI’s blockchain hiring drive is expected to increase in the near future once viable blockchain use cases are unearthed.

In August, the United Kingdom’s National Crime Agency (NCA) set out to hire four senior investigators for its Complex Financial Crime Team to work on crypto-related crimes.

*Job posting for digital assets investigators. Source: National Crime Agency*

The investigators will be tasked with pursuing high-end crypto fraud, money laundering and other blockchain-based crimes carried out by organized crime groups.

The U.K. has been working to establish an investigative team focusing on illicit crypto activities. On Jan. 4, the NCA launched its digital assets team, signaling an increased focus on crypto assets.

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India plans to use crypto tokens in upcoming native web browser

August 10, 2023 Coin Telegraph

Coin Telegraph

Feature is envisaged in the project of national web browser, cherished by the Ministry of Electronics & Information Technology.

The citizens of India might get an option to sign documents digitally through crypto tokens. Such feature is envisaged in the project of national web browser, cherished by the Ministry of Electronics & Information Technology (MeitY).

On August 9 MeitY announced the launch of Indian web browser Development Challenge. The Ministry hopes to “inspire and empower” developers from all corners of the country to create an indigenous web browser withan inbuilt CCA India root certificate. According to the release:

“Proposed browser would also focus on accessibility and user friendliness, ensuring built-in support for individuals with diverse abilities.”

Emphasized separately is the ability to digitally sign documents using a crypto token, which would be embedded into the browser.

The competition will last three rounds — after the first one the scope of participants would be limited to 18, after the second one to 8. The winner would be granted around 34 million Indian rupees ($411,000).

Indian government has been active in its regulatory efforts in the recent months, especially in regard to tech and crypto. Presiding at the intergovernmental forum of 20 largest world economies (G-20), it has supported the Financial Stability Board’s (FSB) recommendations for a global crypto framework and called for special attention to developing economies’ specifics in its potential guidelines for crypto.

In August, The lower house of India’s parliament voted in approval of a bill that would ease data compliance regulations for Big Tech companies. The Digital Personal Data Protection Bill 2023 would simplify storage, processing and transfer standards for r global tech giants like Google, Meta and Microsoft, as well as for local firms.

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India House passes bill to ease BigTech data compliance

August 7, 2023 Coin Telegraph

Coin Telegraph

The lower house in the parliament of India approved updates to a bill that would ease data storage, processing and transfer standards for BigTech companies.

The lower house of India’s parliament voted in approval of a bill that will ease data compliance regulations for Big Tech companies, according to a report from Bloomberg.

On Aug. 7, the legislation that was approved by the house will ease storage, processing and transfer standards for major global tech companies like Google, Meta and Microsoft and also local firms seeking international expansion.

The Digital Personal Data Protection Bill 2023 targets exports of data sourced from India, allowing companies to do so except to countries prohibited by the government.

As it currently stands, the bill requires government consent prior to BigTech companies collecting personal data. It also prevents them from selling it for reasons not listed in the contract, meaning no anonymization of personal data for use in artificial intelligence (AI) training, for example.

These updates to the bill would reduce compliance requirements for companies, though it has to pass through the upper parliamentary house prior to its finalization.

India is the world’s most populous country with billions of internet users, which makes it a key market for growth.

Concerns over data misuse in the emerging tech industry and particularly from BigTech companies have been a growing priority for regulators across the globe.

The rapid emergence of AI as an accessible tool for the general public has caused major concerns among regulators over the way these products collect and utilize user data.

India has also been named as one of the countries that is a part of collaborations with the Biden Administration in the United States to create an international framework for AI.

One recent and major development in the emerging tech scene that has caused concerns over data collection, has been with the launch of the decentralized digital identity verification protocol Worldcoin.

So far, the project has launched 1,500 of its iris scanning orbs in countries all around the world. India is home to two orbs in the northern city of Delhi and the southern city of Bangalore, according to the Worldcoin website.

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Indian banks asked ‘to prepare for the future’ with AI and blockchain

May 31, 2023 Coin Telegraph

In an RBI-organized conference for the directors of Indian banks, deputy governor Mahesh Kumar Jain discussed risk strategies around sustainable growth and stability.

A top federal official representing India's central bank, the Reserve Bank of India (RBI), recommended all banks adopt artificial intelligence (AI) and blockchain technology to ensure sustainable growth and stability.

In an RBI-organized conference for the directors of Indian banks, deputy governor Mahesh Kumar Jain discussed risk strategies around sustainable growth and stability.

Governance in Banks: Driving Sustainable Growth and Stability - Speech delivered by Shri M K Jain, Deputy Governor, Reserve Bank of India at the Conference of Directors of Banks organised by the RBIhttps://t.co/Ft4Kv68X0T
— ReserveBankOfIndia (@RBI) May 31, 2023

Jain spoke about the importance of effective corporate governance and governance structure and processes when it comes to staying prepared for future risks. Technological disruptions, evolving customer expectations and cybersecurity threats among others have put forth new sets of risks for the banks across technology, business and operations. His recommendation for addressing the said set of challenges was to focus on tech adoption.

“To prepare for the future," Jain recommended Indian banks to "adopt innovative technologies such as AI and blockchain," along with focusing on digital transformation, enhancing customer experience, and investing in cybersecurity measures.

India’s central bank digital currency (CBDC), which was launched on Nov. 1, 2022, started being tested for offline functionality in March. At the time, RBI executive director Ajay Kumar Choudhary shared India’s intention to materialize its CBDC as a medium of exchange.

India’s neighbor, Pakistan, also recently announced an ambitious plan to train 1 million IT graduates on AI by 2027.

Draft National AI Policy (https://t.co/pZ516dmP8R)#MOITT believes in an inclusive approach for effective policy making. Please share your feedback through email (feedback.naip@moitt.gov.pk) so that the policy draft is updated in the best interests of citizens of Pakistan. pic.twitter.com/afbkyNuG11
— Ministry of IT & Telecom (@MoitOfficial) May 22, 2023

As previously Cointelegraph reported, Pakistan’s intended use cases for AI include predicting the weather, agriculture supply chain optimization and health services transformation, to name a few.

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Indian Government Answers Questions About Crypto Legalization, Fraud Prevention

April 6, 2023 Bitcoin.com

India expands national payment network to Singapore: What’s in it for crypto?

February 21, 2023 Coin Telegraph

CBDC

One of the banking partners in the cross-border remittance service is also part of the government’s CBDC program.

India’s national payment network, the unified payments interface (UPI), is expanding its services beyond Indian borders, integrating with Singapore’s PayNow rapid payment system. Shaktikanta Das, governor of the Reserve Bank of India, and Ravi Menon, managing director of the Monetary Authority of Singapore, launched the facility through token transactions using the UPI-PayNow linkage.

The UPI-PayNow integration will allow users of the two nations to send money across borders quickly. It is possible to send or receive money from India using only a UPI-id, cellphone number or virtual payment address for money held in bank accounts or e-wallets. UPI’s instant real-time payment system helps to transfer cash immediately via a mobile interface between the two bank accounts.

UPI goes Global!

Since UPI was introduced as a payment system in India, it has revolutionised the lives of Indians, but in fact, India’s digital payment system is steadily becoming globally attractive & is being adopted by other countries.#indiafirst #IndiaSingaporeRelations pic.twitter.com/55sGh5bzbZ
— MyGovIndia (@mygovindia) February 21, 2023

Initially, the State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate outgoing remittances. Axis Bank and DBS Bank India will facilitate incoming remittances. DBS Bank and Liquid Group will provide the service to users in Singapore.

ICICI Bank, a private sector bank in India is also part of the country's central bank digital currency program. India launched its CBDC pilot in two phases, one in November for the wholesale market and another in December for retail users. Since the trial's beginning on December 1st, 2022, the digital rupee pilot project has logged 770,000 transactions involving eight banks. Five cities are already participating in the experiment, with nine more cities possibly joining the trial soon.

Sathvik Vishwanath, CEO of Indian crypto exchange Unocoin, told Cointelegraph:

"This is a great value addition for India’s payment rails given that there is close to 30% population in Singapore are ex-pats and they send money to India once a month or a quarter. This integration eliminates friction reducing the processing time and costs.”

India’s digital payment infrastructure has scaled dramatically over the past few years and was popularised with the advent of Covid-19. While the government is sceptical about the larger crypto market, imposing a 30% tax on crypto gains, which subsequently forced major players to move out of the country. However, the government is keen on using blockchain tech for its CBDC program and the existing infrastructure could help in scaling its digital CBDC pilot as well.

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