The new Indian crypto bill will mandate the need for sharing Know Your Customer (KYC) data of users with various government agencies and regulators for verification, Economic Times reported. The new bill will call for a uniform KYC process for all crypto exchanges, though they currently have their own procedures.
According to ET:
* The crypto bill will require cryptocurrency exchanges to share KYC data of their customers with regulators and government agencies.
* These government bodies include Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the income tax department.
- This will help regulators scrutinize transactions across platforms.
- It will further help them check against bank deposits and find out discrepancies.
* The bill will consist of a uniform KYC regulation that has to be compiled by each exchange, they said.
* The KYC information will be the main requirement for any inspection by any regulator.
* The reason for such a scrutiny lies in the possibility that many cryptocurrency investors could be operating multiple accounts across crypto platforms, banks and financial companies.
* The government is planning to add cryptocurrency to Section 26A of the Income Tax Act in the upcoming budget, which will necessitate taxpayers to reveal their cryptocurrency investments both in India and abroad.
Due to the continuing uncertainty in crypto regulation, most banks had ceased to provide services to crypto exchanges. This may create a problem for regulators to scrutinize since cryptocurrency transactions are designed in a different manner.
In spite of the uncertainty around crypto legislation, many businesses like Unocoin crypto exchange continue to offer cryptocurrencies as a method of payment.
Many enterprises and corporate sectors in the meanwhile eagerly await for the final crypto laws to be enforced and follow them.
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