Group representing Indian crypto exchanges to be dismantled: Report

India’s only lobby for blockchain and crypto exchanges will be dismantled, said a media report on Friday quoting a source in a group representing the wider mobile technology sector.

The Blockchain and Crypto Assets Council (BACC) speaks for an industry already sell-off pressure. Bitcoin, the largest cryptocurrency by market cap, was trading at $20,798.02 on Friday. The Indian government, in Budget 2022, had imposed a 30 per cent tax on the proceeds from the sale of cryptocurrency. Additionally, a 1 per cent tax deducted at source (TDS) has also come into effect from July 1, 2022.

The Internet and Mobile Association of India (IAMAI) is dismantling BACC after disagreement and allegations that crypto exchanges were not following an internal code of conduct, according to a report by moneycontrol.com.

"The BACC group has been highly indisciplined in terms of following through the demands and requirements of the government as decided during the meetings with government bodies. The only commitment that was processed through timely was the pulling down TV and digital commercials promoting crypto investing. IAMAI will not be involved with the crypto body or discussions going forward," the report said, quoting a person aware of the matter.

Reserve Bank of India (RBI) governor Shaktikanta Das, on June 30, said that cryptocurrencies are a "clear danger". He added that anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name.

Since March 2022, global crypto markets have crashed by over 80 per cent, in terms of market cap. High inflation, tighter policy stance by the central banks, the war in Ukraine and new tax rules are some of the factors for the same. Bitcoin alone has swept off nearly $500 billion of investors' wealth since March.