Launched by Hashed Emergent and Black Dot, the COINS model law is aimed at creating clear regulations for cryptocurrencies in India.
Structure of the COINS Model
The COINS Act (Crypto-systems Oversight, Innovation and Strategy) provides a legislative framework to support clearer conditions for the operation of cryptocurrencies in India. It proposes establishing a new regulator — the Crypto Assets Regulatory Authority (CARA) to oversee crypto activities in the country. The model law incorporates global standards, adapted to India’s market context.
Regulatory Uncertainty
Hashed Emergent's legal counsel, Arvind Alexander, pointed out that current regulatory uncertainty in India has driven the creation of the COINS Act. He highlighted the lack of clear legal norms regarding users’ rights to self-custody, privacy, and permissionless protocol access, alongside high taxes and unclear anti-money laundering and know your customer mandates.
Future Proposals
The model law also proposes establishing a strategic Bitcoin reserve for the country, which would utilize legally seized crypto assets to create this reserve. Additionally, the law suggests holding workshops with the Ministry of Finance aimed at further discussions on the model.
The COINS model law marks a significant step towards creating a sustainable legal foundation for cryptocurrencies in India, promoting innovation and attracting investments in the sector.
