The top influential tech lobby group in India is turning its back on crypto support in a major setback for the local ecosystem in the South Asian country.
The Internet and Mobile Association of India, an 18-year-old lobby group, said on Thursday that it is disbanding the Blockchain and Cryptocurrency Asset Council, its four-year effort to support and campaigning for the nascent technology portfolio.
The association said in a statement that it was forced to make the decision because “a resolution of the regulatory environment for the industry remains highly uncertain.”
“The association wants to use its limited resources for other emerging digital sectors which contribute more directly and directly to digital India, in particular, to increase inclusion finance and promote the Central Bank to issue Digital Currency [CBDC]. Members of the BACC were informed of the decision at a meeting held here today,” it said.
The move is the culmination of years of frustration for the Indian crypto industry, which has argued that the lobbying group’s influence and reach have not been able to yield enough significant results. turning point, people familiar with the matter told TechCrunch.
IAMAI feels that it is risking its reputation by continuing to drive cryptocurrency adoption and support, two different people familiar with the matter said.
Despite that, the shutdown of the Crypto Assets and Blockchain Asset Council will put the local industry back on the drawing board at a time when local exchanges and other crypto companies saw a sharp drop in trading volume under the rise of India tax enforcement on virtual digital assets.
India’s central bank continues to force banks to participate in crypto platforms in India, a move that has made growing companies a nightmare, people familiar with the matter are familiar with. said.
Many investors and entrepreneurs in the country have had to scramble for months to find newer, more efficient ways, including partnering with Niti Aayog, a powerful consultant, to communicate with investors. policymakers, said sources with direct knowledge of the matter. Niti Aayog has been largely against getting involved in the crypto industry, sources said.
Indian legislators, on their side, have met with some confrontations in the industry over the past year, but so far they argue that the rapid adoption of cryptocurrency trading has hurt most consumers. and more protective measures need to be put in place, the sources said. .
Amid the turmoil, the local ecosystem has seen some talent move out of the country and an increasing number of local entrepreneurs build overseas markets and avoid serving customers in India, second largest internet market in the world.
“It is our belief as the industry to have a sustained dialogue with regulators and stakeholders and address concerns about progressive regulations. As an industry, we will continue to actively engage with all stakeholders and continue to build on emerging technology including Web 3.0,” said Ashish Singhal, co-founder and CEO of CoinSwitch Kuber, and Sumit Gupta, co-founder and CEO of CoinDCX, said. in a joint statement. The duo served as president and co-chair of the BACC.