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Indian crypto-exchanges will now create a shared user database

Feb 15, 2018 Posted /  1514 Views

Indian crypto-exchanges will now create a shared user database

The cryptocurrency exchanges in India are planning to create a shared database of crypto-traders and their transactions. The exchanges are proposing that they would ask users to link their Adhaar ID or a Permanent Account Number while creating accounts with exchanges. The recommendation comes after Indian government clarified its stand that it may come up with some regulations in relation to virtual currencies soon.

Database of Crypto Traders

Indian Cryptocurrency exchanges have planned to maintain a shared user database. The exchanges in the country asserted “planning to create a central repository of users that will help create and maintain a real-time record of transactions,” as reported by the Economic Times. The exchanges are members of the Blockchain and Cryptocurrency Committee (BACC) of the Internet and Mobile Association of India (IAMAI) which has seven members that are crypto exchanges.

Ajeet Khurana, head of the committee, insisted that “This is one of the proposals we are planning to submit to the government committee which is looking into the issue of cryptocurrency.” A top industry member elaborated to the publication:

The purchase data of buyers and sellers of the virtual currency can then be traced 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 individual users, will be available through the central repository.

Aadhaar is a 12-digit unique identity number issued to all Indian residents based on their biometric and demographic data. It is the world’s largest biometric ID system, with over 1.19 billion enrolled members as of the end of November. PAN is a unique 10-character code that acts as an identification for individuals, families and corporates, especially those who pay Income Tax. It is issued to Indians and foreign nationals with a valid visa.

Khurana noted that BACC aims to submit the proposal later this week to the government committee, which is headed by Economic Affairs Secretary SC Garg. The government panel is expected to submit its recommendations by March and appoint a regulator to monitor cryptocurrency trading, the news outlet described.

The Indian scenario

Last week, Khurana said that the Indian government is concentrating on providing clear regulations for cryptocurrencies and also crypto exchanges. He projects that 5 million people in India either at present use cryptocurrency or have used them in the past, “And this number is growing,” Firstpost quoted him.

“Our exchange participants neither allow foreigners to participate nor allow foreign exchanges to come in. We are working independently from the world,” he further detailed. “Despite that, our market mechanism is very vibrant. If you were to ever look at the order book of cryptocurrency exchanges and compare them to forex or stock exchanges, you would feel they are operating similarly.” He noted:

“Regulatory framework on cryptocurrencies in India is taking time because of the nature of the technological innovation and confusion over who should regulate it.”

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Tags: CryptoExchanges Indian CryptoExchanges Database bitcoin india

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