A new model law could help simplify crypto rules in India and boost innovation across the sector.
- The COINS Act proposes clear rights for crypto users in India.
- It recommends creating a new crypto regulatory body.
- The law also suggests India build a Bitcoin reserve.
New Framework for Digital Assets
A Web3 venture firm called Hashed Emergent and a policy group named Black Dot have released a model law for crypto in India. It’s called the Crypto-systems Oversight, Innovation and Strategy (COINS) Act. While it is not a real law yet, it could help lawmakers understand how to manage digital assets better.
The COINS Act focuses on giving users clear rights. These include self-custody, financial privacy, and access to permissionless protocols. It also highlights the need to fix problems like high crypto taxes and unclear rules.
Creating a New Crypto Regulator
The model law calls for a new group called the Crypto Assets Regulatory Authority (CARA). This body would manage crypto-related activities in the country. The plan takes ideas from trusted global sources, such as the EU’s MiCA regulations and Singapore’s sandbox approach, and adapts them for India.
The creators say that India lacks proper laws to protect crypto users. At the same time, users face heavy taxes and unclear compliance rules. For example, the government charges a 30% tax on profits from crypto and a 1% fee on all transactions.
Helping Developers Stay in India
Many Indian crypto projects have moved overseas due to strict regulations. The COINS Act aims to stop this trend and bring back innovation. The creators say India can become a top crypto hub with the right laws.
The law gives different rules based on who controls the crypto. Centralized exchanges would need full licenses. Non-custodial platforms would face simpler requirements. Fully decentralized protocols might not need to follow any rules.
Proposal for a Bitcoin Reserve
The model law also wants India to start a Bitcoin reserve. This fund would be made from legally taken crypto and small market buys. It would be managed by the parliament. A member of India’s ruling party recently suggested a similar idea, saying it could boost the country’s economy.
Next Steps Toward Adoption
To promote the COINS Act, Hashed Emergent will co-host an event with the Bharat Web3 Association. Black Dot also plans to hold workshops with top government bodies, including the Ministry of Finance and Reserve Bank of India. They hope these meetings will help turn the model law into real policy.
The creators say they want the crypto community to play a role in shaping the rules. They believe working together will bring better results for users and developers alike.
Source: cointelegraph.com