Hashed Emergent and Black Dot have presented the COINS Act, proposing a new regulatory framework for cryptocurrencies in India. This initiative aims to improve legal conditions for cryptocurrency users and provide clarity in regulation.
Contents of the COINS Act
The COINS Act presented to the Indian Parliament addresses three core areas affecting cryptocurrency users. Legal counsel Arvind Alexander noted that builders face unclear Anti-Money Laundering mandates and lack express rights to self-custody and privacy. The proposed act includes the establishment of a Crypto Assets Regulatory Authority to oversee cryptocurrency activities. The COINS Act incorporates global standards based on the European Union’s MiCA regulation and Singapore’s regulatory sandbox, adapted for India’s constitutional context.
Importance of Legal Framework for India
The COINS Act directly targets India's restrictive crypto environment that has driven companies offshore. Senior legal counsel Vishal Achanta explained that DeFi protocols, gaming studios, and infrastructure projects have relocated abroad to escape punitive taxation and regulatory uncertainty. The new law provides solutions to reverse this trend by offering rights-first certainty and innovation safe harbors. Current tax policies create substantial barriers for crypto users in India, imposing a 30% flat rate on virtual digital asset profits, which differs sharply from the COINS Act approach of protecting fundamental crypto rights.
Global Regulatory Trends
The COINS Act aligns with worldwide regulatory developments moving toward comprehensive crypto frameworks. Recent analysis shows that 93% of Financial Stability Board members plan new crypto frameworks, while 88% are developing stablecoin regulations. The EU's MiCA regulation will fully take effect in December 2024, while Asian financial centers like Singapore lead with improved licensing regimes. Despite regulatory challenges, India's crypto landscape shows significant potential, with over 150 million Indians using cryptocurrency. The model law creators plan workshops with key regulatory bodies, reflecting the growing confidence that user pressure will eventually influence policy adoption.
The COINS Act represents a step towards establishing a clear legal framework for cryptocurrencies in India. The new regulatory approach could position the country as an attractive destination for investments and innovation in digital assets.
