Home » Crypto industry’s revised self-regulation norms to include NFT, tighten customer protection rules.

Crypto industry’s revised self-regulation norms to include NFT, tighten customer protection rules.

By Ameena Ameena - Jan 29 2022

The cryptocurrency industry in India,has revised the self regulation norms.
The cryptocurrency industry which has been working on revising self-regulation rules, will include non-fungible token (NFT) start-ups under the purview.
The ongoing work on code of conduct guidelines is also expected to expand on bringing uniform consumer protection safeguards, taxation and advertising rules.
The existing ‘Code of Conduct’ guidelines for the cryptocurrency industry, drafted by The Blockchain and Crypto Assets Council ( BACC), is being revised to take into account concerns around the lack of proper regulatory oversight on crypto transactions.
BACC, which is part of the Internet and Mobile Association of India (IAMAI), had recently sought inputs from the industry to determine the revised code.
Most of the top cryptocurrency exchanges in the country including WazirX, CoinDCX, Unocoin and CoinSwitch Kuber among others are members of this body.

The industry is working on updating the guidelines as per the developments.
It is also looking to introduce NFT start-ups within the framework.
Key focus areas in the existing policies will be to include bring uniform taxation, advertising norms and expand on customer protection guidelines,” one of the persons involved in the ongoing discussions .
Recently, the exchanges came under the scanner of tax officials for non-payment of Goods and Services Tax (GST).
Last year, cryptocurrency industry saw massive growth following steady increase in prices of crypto assets and an army of new investors entering the space.
The popularity of the sector also led to two cryptocurrency exchanges CoinDCX and CoinSwitch Kuber turning unicorns.
As of November 2021, there were 12 new NFT marketplaces and around 380 cryptocurrency start-ups operating in the country, according to Tracxn.

While the exchanges have been trying to spread awareness on crypto investing through advertisements and at community levels, there hasn’t been any unified industry-level approach to this yet.
Last year, a few of these start-ups were scrutinised for their advertisements undermining the risks of the asset.
Advertising in this sector is very nascent and unorganised.
Thus, when updating the guidelines, defined advertising conduct will surely be a part of it.
Code of conduct is a work in progress.
With the ongoing growth, came the issue of advertisement.
As a body members has decided that they need to have some Dos and Don’ts that needs to incorporated.
Similarly, with the taxation issue they want to have a uniform code to comply to.
Industry already have a few basic customer protection guidelines in place.
More than protection, at the moment education is important on what to do and what not. Biggest concern in India about cryptocurrency is misinformation.
Awareness will also help with tackling issues like hacking and falling for fake exchange sites,”
There is no legal recourse or tools available to the customer at present to deal with cybercrimes related to cryptos, education will help.