Indian Cryptocurrency Exchanges Likely To Maintain User Database

Bitcoin Exchanges Make Plans To Maintain User Database

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New Delhi: After much disturbance from the India finance minister who termed cryptocurrencies as illegal tender, the cryptocurrency exchanges in India are making plans to build a central database of users that will help in creating and maintaining a real time record of cryptocurrency transactions carried out by users, report said.

With this, the data detailing the buying and selling transactions of virtual currencies by users can then be easily traced either through the user’s Aadhaar ID or the user’s Permanent Account Number (PAN).

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According to a top industry member, records that will be held within the database would include the total number of virtual currencies a user holds, the value of the virtual currencies and also the pattern of purchasing and selling of the virtual currencies by individual users.

The Blockchain and Cryptocurrency Committee (BACC) of the Internet and Mobile Association of India committee has seven cryptocurrency exchanges as its members. Ajeet Khurana, the head of the committee said:

“This is one of the proposals we are planning to submit to the government committee which is looking into the issue of cryptocurrency.”

Ajeet added the BACC wishes to submit the proposal during the course of this week to the government committee, which is headed by the secretary of Economic Affairs SC Garg. In return, the government committee is expected to submit its recommendations by March. More so, the government committee is also expected to assign a regulator that would monitor trading carried out with cryptocurrencies.

India Finance Minister Arun Jaitley, during the presentation of the annual budget to the Parliament on February 1 said the government will eradicate the use of cryptocurrency assets in financing illegitimate activities.

However, prior to this moment, both the India central bank and federal government have cautioned citizens about trading with in virtual currencies.

This could be taken as a warm embrace toward cryptocurrency exchanges and cryptocurrencies by the Indian government.

What do you think about the latest development bout the cryptocurrency exchanges in India? Tell us in the comment box.

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