India and its cyber security nodal agency have directed all ISPs and crypto exchanges to follow the new KYC record-keeping and data breach reporting instructions.
The Computer Emergency Response Team (CERT-In), under the Ministry of Electronics and Information Technology, Government of India, has said that all cyber breaches should be reported within six hours of detection. This includes immediate reporting of rug pulling.
Along with KYC records, exchange providers and custodian wallet providers in India are also required to retain those records for at least five years.
“Several times during LEA (law enforcement agency) requests and investigations, we have seen cases of non-storage or availability of data and proper records with middlemen and service providers. These guidelines will streamline the maintenance of up-to-date records and proper reporting of security incidents to CERT-In,” said Voyager Infosec Director of Digital Labs Jiten Jain in an interview with The Financial Express.
India is taking its time with a legal crypto framework
Since India does not have a comprehensive virtual asset framework, feedback and reporting guidelines for crypto players are currently included in the larger technology and financial practices of the country.
Ishaan Arora, Partner, Tykhe Block Ventures, recently told Economic Times that “[f]It is not a bad move to have a law on cybercriminals to treat iat and crypto equally, as long as it is thought through with all stakeholders in mind. ,
Still, a detailed crypto framework is also not expected to come anytime soon, as India’s finance minister recently clarified that the government is not rushing with legislation. However, the industry has gone ahead to warn developers and investors about crypto “brain drain” due to legislative delays.
Paul Rogash, CEO and Founder of Arnu, thinks the government is taking its time, this could be a good move:
“Now the ministers are pointing towards taking an informed decision. We are sure that the government will work towards bringing in rules, in the absence of which activities outside the country can be diverted, or perhaps the black market, which will disrupt the economy,” he told the local newspaper.
However, legislative uncertainty has certainly led India’s CoinSwitch Kuber exchange to temporarily halt INR deposits for crypto purchases. While the exchange has now discontinued the transfer method after two weeks, instant UPI transfer is unsupported for crypto providers in the country.
Meanwhile, India’s major banks have also reportedly asked the National Payments Corporation of India (NPCI) to give a formal direction for purchase and sale of virtual digital assets (VDAs) in India.
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