Crypto Bourses Get Cracking to Preempt Regularly CURBS

Cryptocurrency exchanges are putting in place mechanisms and processes to address concerns raised by regulators over possible use of Crypto for money laundering and round tripping in the face of new regulations being brought in by the government.

Top exchanges are going the extra mile to check the credentials of investors using their platform some are also looking to step investors from swapping crypto assets, industry insiders said.

Some of the largest players are also learn to be putting in place processes where investors will not be able to buy or sell anything using cryptocurrencies. That is, cryptocurrencies can only be used as an asset and not as a currency.

The reserve bank of India (RBI) had raised concerns around crypto and how it could pose a risk to India’s financial stability.

In a meeting with the government regulators including the RBI had raised concern around how cryptocurrencies could be used for money laundering.

Coinswitch Kuber follows a closed loop system in which investors can sell crypto assets and withdraw Indian rupees but they cannot deposit, withdraw or transfer to others any crypto only as an investment asset.

So, customer can use crypto as an investment asset and cannot transfer crypto asset out of the platform. “Even though crypto investing is currently unregulated, we have in place robust systems to check misuse,” sad Ashish Singhal, founder and CEO of coins’ witch Kuber. “we use a robust KYC (know your client) process during our user onboarding similar to equities…” he said S-ET

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