IAMAI to shut down Blockchain and Crypto Assets Council (BACC). How will it impact crypto industry?

The Internet and Mobile Association of India (IAMAI) has reportedly decided to shut down the Blockchain and Crypto Assets Council (BACC). The IAMAI has, however, not issued any formal statement in this regard till the time of writing.

IAMAI distancing itself from BACC could prove to be another blow to struggling crypto exchanges and companies in India, who have been battered by the market crash and the implementation of a harsh crypto tax regime.

Crypto experts say the nascent industry will lost a prominent policy advocacy arm with the dismantling of BACC by IAMAI.

“IAMAI’s BACC provided a platform for the crypto industry to voice opinions in a structured manner. Contrary to their global counterparts, Indian regulators have dismissed the potential of crypto in transforming payments, financial services and inclusion. Unfortunately, BACC is being shut down. The industry will lose a prominent policy advocacy arm in the form of BACC,” Sharat Chandra, VP, Research and Strategy at blockchain-based identity management platform EarthID, told FE Online.

BACC represented the crypto ecosystem in India. It has been working with policymakers, regulators and industry. Members of the council including leading crypto players in India like WazirX, CoinDCX, CoinSwitch Kuber, ZebPay, BitBNS, Chingari, Vauld, Mudrex etc.

Reports said that IAMAI was having disagreements with the crypto companies. There was also pressure in view of RBI making its anti-crypto stance clear. 

Regulatory uncertainty over crypto has also not ended. While the Government is still working on crypto rules, tax rules announced in Budget 2022 have severely affected trading volumes of exchanges. 

As per the crypto tax rules, flat 30% tax applies on income from crypto transfer while 1% TDS is also required to be levied during crypto transactions. 

BACC has created a self-regulation code of conduct for the industry in consultation with key stakeholders in the business. This code of conduct was adopted by all member crypto exchanges.