The Computer Emergency Response Team (CERT) has been declared India’s national agency for cyber security. The crypto industry is also included under the jurisdiction of CERT.
This move makes the CERT the authority responsible for monitoring the illegal and suspicious activities in this sector.
In a circular sent out on April 28, it is specified that crypto businesses need to keep know-your-customer (KYC) information and records of financial transactions for five years to provide “cyber security in the area of payments and financial markets for citizens while protecting their data, fundamental rights and economic freedom in view of the growth of virtual assets.”
Crypto businesses include virtual asset service providers, virtual asset exchange providers and custodian wallet providers.
The circular also mentions that the data should be maintained in a manner compatible with the guidelines laid out by the Reserve Bank Of India (RBI), Securities and Exchange Board of India (SEBI) and Department of Telecom (DoT).
The crypto businesses also need to appoint a point of contact for CERT, to have an open channel of communication regarding the new rules as well as to provide the data, whenever asked for.
The rules will come into effect 60 days after the circular was issued.
The Indian Government has taken a careful and steady approach towards crypto adoption. Indian Finance Minister Nirmala Sitharaman, while interacting with the students and staff at Stanford University said that India will take a considered view on crypto legislation while flagging concerns over the misuse of crypto.
While speaking at another event, the Finance Minister has also claimed that the biggest risk of cryptocurrency is that it will be used for money laundering and terror financing.
While formal legislation regarding crypto is nowhere in sight, the government has still managed to tax the multi-million dollar industry. The Finance Bill 2022, which was passed earlier this year and came into effect on April 1, taxes all digital transfers and holdings at 30%.
