I ndian cryptocurrency exchanges are supposedly planning to create a central repository of users that will help to create and maintain a synchronized record of transactions, the Economic Times reported. Clients account data would be linked to an Aadhaar Card or a Permanent Account Number (PAN). The proposal arrived in the middle when the Indian government was actively working on crypto guidelines. The Indian exchanges are members of the Blockchain and Cryptocurrency Committee (BACC) which is the part of Internet and Mobile Association of India (IAMAI).
Head of the BACC Ajeet Khurana highlighted that “This is one of the suggestions we are preparing to submit to the government committee which is looking into the matter of cryptocurrency. The data of buyers and sellers of the digital currency can then be tracked through either the Aadhaar ID or the Permanent Account Number (PAN) of the user. Details such as the total number of cryptocurrencies held, the value thereof, as well as the pattern of buying and selling by users, will be available through the central repository.”
Aadhaar Card Number is a 12-digit unique identity number issued to all Indian citizens based on their demographic and biometric data. It is the world’s leading biometric ID system, with over 1.19 billion registered members as of the end of November 2017. PAN is an exclusive 10-character code that works as identification for families, individuals & corporates, particularly those who pay Income Tax. It is issued to Indians and foreign nationals with a valid visa.
Khurana noted that BACC focused on to submit the plan later this week to the government committee, which is headed by Economic Affairs Secretary SC Garg. They have to submit its recommendations by the end of March 2018 and assign a regulator to monitor cryptocurrency transactions. He estimates that 5 million people in India currently use cryptocurrency or have used them in the past, and this number is growing. The current exchange members neither allow foreigners to take part nor allow foreign exchanges to come in. Indian exchanges are functioning separately from the world.
India is not the only country that is struggling with regulation matters in the crypto industry. Countries such as the US and South Korea have been sending mixed messages to their respectively mounting crypto communities in the regulation that they employ. Conversely, Japan made history when it became the first country to declare cryptocurrency as legal tender in April 2017.