Indian cryptocurrency exchanges are reportedly planning to create a database of crypto traders and their transactions. User account data would be tied to either an Aadhaar ID or a Permanent Account Number. This proposal comes amidst the Indian government actively working on crypto regulations.
Database of Crypto Traders
Cryptocurrency exchanges in India are reportedly “planning to create a central repository of users that will help create and maintain a real-time record of transactions,” the Economic Times reported. The exchanges are members of the Blockchain and Cryptocurrency Committee (BACC) of the Internet and Mobile Association of India (IAMAI) which has seven members that are crypto exchanges.
Ajeet Khurana, head of the committee, emphasized that “This is one of the proposals we are planning to submit to the government committee which is looking into the issue of cryptocurrency.” A top industry member explained to the publication:
The purchase data of buyers and sellers of the virtual currency can then be traced through either the Aadhaar ID or the Permanent Account Number (PAN) of the user. Details such as the total number of cryptocurrencies held, the value thereof as well as the pattern of buying and selling by individual users will be available through the central repository.
Aadhaar is a 12-digit unique identity number issued to all Indian residents based on their biometric and demographic data. It is the world’s largest biometric ID system, with over 1.19 billion enrolled members as of the end of November. PAN is a unique 10-character code that acts as an identification for individuals, families and corporates, especially those who pay Income Tax. It is issued to Indians and foreign nationals with a valid visa.
Khurana noted that BACC aims to submit the proposal later this week to the government committee, which is headed by Economic Affairs Secretary SC Garg. The government panel is expected to submit its recommendations by March and appoint a regulator to monitor cryptocurrency trading, the news outlet described.
Indian Crypto Regulations
Last week, Khurana said that the Indian government is focused on providing clear regulations for cryptocurrencies and also crypto exchanges.
He estimates that 5 million people in India either presently use cryptocurrency or have used them in the past, “And this number is growing,” Firstpost quoted him.
“Our exchange participants neither allow foreigners to participate nor allow foreign exchanges to come in. We are working independently from the world,” he further detailed. “Despite that, our market mechanism is very vibrant. If you were to ever look at the order book of cryptocurrency exchanges and compare them to forex or stock exchanges, you would feel they are operating similarly.” He noted:
Regulatory framework on cryptocurrencies in India is taking time because of the nature of the technological innovation and confusion over who should regulate it.
What do you think of this proposal? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.