Background

COINS Act: Model Law Proposes Crypto Regulation in India

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Key Points:

  • Indiaโ€™s regulatory landscape may evolve through the COINS Act.
  • Non-binding proposal seeks to attract digital asset projects.
  • Crypto communityโ€™s response may boost local appeal.

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COINS Act: Model Law for Crypto in India

Indiaโ€™s potential shift to clear crypto regulation may attract local and international projects, which have been hampered by past restrictive policies.

The Vision Behind the COINS Act

Hashed Emergent and Black Dot propose the COINS Act to address unclear crypto regulations. Arvind Alexander, Legal Counsel at Hashed Emergent, remarked, โ€œRegulatory uncertainty in India drove the creation of the COINS Act. There are much-delayed, after-the-fact advisories, but no clear laws.โ€

Vishal Achanta emphasizes Indiaโ€™s transformation into an attractive destination.

Impact and Inspiration

The COINS Act affects all digital assets, such as BTC and ETH, influencing exchanges, custodians, and DeFi protocols. Financial commitments remain absent, as the proposal is industry-led and not government-funded.

Past Indian regulations drove digital assets abroad. The COINS Act aims to reverse this trend by securing self-custody rights and promoting local development. Global standards, like the EUโ€™s MiCA, serve as its model.

Future Prospects

If enacted, the COINS Act might restore Indiaโ€™s status as a DeFi and Web3 hub. Optimism among developers and the crypto community could drive growth, provided the Act gains support and becomes law.

While the COINS Act is not yet binding, its intent is clear: rejuvenate Indiaโ€™s crypto sector and reduce previous outflows caused by stringent regulations.

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