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Kashif Raza
Learning from WazirX & CoinDCX hack for law makers.
1st step in law making process around crypto/VDA in India🇮🇳 is to:
Treat crypto as digital property.
Why?
India’s property laws cover the rights, responsibilities, and procedures related to owning, using, transferring, and inheriting property.
Property laws in India are already covering tangible and intangible property like IP rights.
Self custody of property will become a basic right and then people can easily self custody their assets like the way they own gold in personal vaults or bank lockers.
This will lead to less dependence on exchanges and custodial services.
It will then be a choice of an individual then to hold the property with custodian or prefer self custody.
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To avoid further hacks of Indian Exchanges, I have a not-so-tasteful but practical suggestion:
India should allow the big, reputable top 5 foreign exchanges of the world to either:
- Set up an Indian entity inside India and get a crypto license.
- Allow FDI up to 75% in Indian crypto exchange.
- Allow people to self-custody and easy withdrawal from exchanges.
Maintaining security standards is a costly affair, and Indian exchanges do not have deep pockets to spend on the security of crypto against hacks.
Only big global players with deep pockets and insurance funds can protect user funds. We saw a recent example of Bybit.
Coinbase, Binance, and a few other exchanges are like Google, Apple, and Amazon of the crypto industry, with deep pockets and global expertise to secure funds and even reimburse if something goes wrong.
With earnings remaining within India, and global exchanges setting up their Indian entities, they will be fully compliant.
X is giving us anXiety.
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