InsideBitcoins.com

India Looks to Get Idea for Its Crypto Rules from Fincen

India Looks to Get Idea for Its Crypto Rules from Fincen

Indian authorities may look at new rules proposed by the US financial Crimes Enforcement Network (Fincen). The new rules are associated with US exchanges reporting transfers of digital currencies when their value crossed $10,000. The transactions in Bitcoin made to non-custodial wallets will fall under the new rules.

What are non-custodial wallets?

Non-custodial wallets are private wallets which can be in the form of paper wallets or hardware wallets. They are not hosted by any exchange and no entity, except the owner of the wallet, holds their private keys. Exchanges usually prefer completing Know Your Customer (KYC) processes for transfers to non-custodial wallets if the transaction value crosses $3,000. The new rules from Fincen will be available for public comment till February 4, 2021.

India Looks to Get Idea for Its Crypto Rules from Fincen

What is India planning?

Experts suggest that India could use the Fincen rules as a model for its cryptocurrency regulation. In early 2018, the country’s apex bank- the Reserve Bank of India (RBI) imposed a blanket ban on banking services to crypto entities. In early 2020, the Supreme Court quashed that ban. However, the regulatory landscape for cryptocurrencies is still largely vacant.

Kashif Raza, the co-founder of Crypto Kanoon, commented on the rules and said that while Fincen policies will not affect Indian users directly, they can give a template to Indian regulators to follow. Arjun Vijay, the co-founder of Giottus Crypto Exchange said,

“The rule affects US individuals and US exchanges. But if it is adopted by international bodies like the FATF, it will have a bearing on India. I don’t think this will shift business outside the US. Exchanges outside the US are already wary of accepting US customers due to the stringent regulation in the US.”

Vijay said that the rules could affect the volume of crypto trades in the US as Fincen adds an extra step of paperwork for the users while making money transfers.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      Sherlock Gomes loves to write and express his views on anything related to Crypto. He has been covering Crypto for more than two years now. He likes Bitcoin and Cardano. He also writes on Finance, Healthcare, and Technology among other stuff. He can be reached by e-mail on sherlockg@insidebitcoins.com

      Leave a Reply

      Your email address will not be published. Required fields are marked *