Crypto Exchanges Prepped to Submit Suspicious Transactions to Government


Cryptocurrency has been a subject of uncertainty in India and across the globe. The Indian government recently took measures to increase surveillance by bringing crypto businesses under the scope of money laundering regulations. DH’s Gyanendra Keshri talked to Sumit Gupta, co-founder and CEO of crypto exchange CoinDCX, to learn more about the effects of the new rules on crypto businesses and what the future might hold. Here are the highlights.

What influence will the recent money laundering and KYC guidelines have on crypto firms?

The beauty of blockchain technology is that all deals are traceable and accessible all the time. From the start, every customer on our platform has been subject to KYC verification. We have implemented a number of protocols, not just with regards to KYC, but also other standards necessary for financial transactions.

Do crypto exchanges watch out for suspicious transactions, and are they ready to provide information to the authorities?

We have been seeking clarity when it comes to reporting suspicious transactions. We did not know to whom we should report them. Thankfully, that issue has been cleared up. We have some tools in place that track suspicious transactions, similar to the ones banks use. These will now be put in action.

What KYC standards do crypto exchanges follow?

The standards are in line with the ones banks and other financial institutions implement.

What do you think the regulatory framework for crypto will look like?

Countries all over the world are now trying to regulate this space. This year, crypto regulation is a part of the G20 agenda. Most countries have reached a consensus on a common framework for the regulation of this asset class. We are no longer talking about banning it, but the nuances of how to regulate it.

We are optimistic that the world will reach an agreement on how crypto should be regulated. There may be some challenges in the short-term, but in the long-term, it is clear that this space will have to be regulated, and we are moving in that direction.

What kind of regulation is the crypto industry expecting?

We are looking for progressive regulation. It is important to regulate this space in an open and progressive manner, without overly strict rules that stifle innovation. We are positive and awaiting the introduction of progressive regulations, even though it may take some time.

What do you think of the RBI’s stance on cryptocurrencies?

I will not comment on the RBI’s views. However, a lot of the confusion comes from the use of the term ‘currency’. Crypto is not a currency, it is an asset. The government calls it a virtual digital asset, so we should call it a crypto asset and not a crypto currency.

Are crypto firms having trouble raising funds due to regulatory uncertainty?

CoinDCX, in particular, is well-funded and does not need extra capital from the market. We have strong reserves.

What will be the future of crypto if the regulations turn out to be unfavorable?

We will continue to work hard and collaborate with policymakers and other stakeholders because we strongly believe that this is the future. A lot of internet-based applications will be using blockchain technology in the coming years. CoinDCX is here to nurture and grow the industry in the right way.

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