Major Indian exchange proposes new regulatory framework to avoid crypto ban

Major Indian cryptocurrency exchange BuyUCoin has developed a framework to regulate cryptocurrency in India that it claims has the support of "All the Indian cryptocurrency stakeholders".

BuyUCoin, which has more than 350,000 users and handles billion-dollar transactions, described the framework as a draft set of community driven rules, propositions and implementation methods.

The framework will be presented to the Indian Government.

It comes after the Indian Supreme Court in March struck down the Reserve Bank of India's circular banning banks and other financial institutions from dealing with crypto companies.

Bloomberg reported last week however the Indian government planned to introduce a new bill to ban the trade of cryptocurrencies during the monsoon session.

"This draft of the sandbox is driven by the inputs from crypto experts and industry insiders, and will not only help the government to make laws but will also guide the startups and budding entrepreneurs to enter in this booming industry."

Cointelegraph has contacted BuyUCoin to find out which stakeholders had contributed to the framework and will update this story when they respond.

"Banning crypto trading would cause India to fall behind other nations that allow it. By lobbying the Indian authorities, industry participants can implement the much needed crypto regulations in the country."

Separately, Indian blockchain focused lawfirm, Crypto Kanoon, has also taken aim at the potential crypto ban, comparing it to the country's ban on derivatives trading in 1953 which had lasting, damaging effects on the finance industry.

Raza points out that during those 50 years, commodities trading did not stop after the ban.