According to the guidelines shared by the New Delhi-based group, Web3 firms must proactively work on earning the trust of the investors. The BWA considered practices adopted by entities like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Association of Mutual Funds in India (AMFI) while framing these guidelines.
The BWA has instructed crypto firms to prioritise the resolution of consumer complaints, by implementing features like unique complaint IDs and notifications on grievance redressal, in alignment with the Consumer Protection Act, 2019.
“Adopt a process for complaint management to enable end-to-end complaint redressal mechanism through digital mode. Display the grievance redressal policy on the website along with the details of grievance handling/escalation matrix procedure and a point of contact for grievance redressal as required under law,” the BWA said. The group has also asked Web3 firms to conduct periodic reviews of their complaint management systems for effectivity.
The guidelines also state that crypto firms are responsible for providing users with easily understandable details of their service offerings. Transparency, sustainability, data privacy, and responsible advertising have been listed as key focus points for Web3 firms looking to grow their business in one of the most diverse markets in the world. Web3 firms have been asked to dissuade internal unfair practices, conflicts, aggressive sales tactics, false claims, and other inappropriate conduct.
Presently, 42 Web3 firms including CoinDCX, CoinSwitch, and Mudrex are affiliated with the BWA. These guidelines apply to all BWA members, Chenoy told Gadgets 360.
Earlier, the agency also released ‘Cybersecurity and Fair-Trading Guidelines’ as well as the token listing rules for virtual asset service providers operating in the country.
Indian regulators are working to release a comprehensive list of dos and don’ts for companies that are working with cryptocurrencies, blockchain, and metaverse technology. Despite the lack of official regulation, 16 out of the Nifty 50 firms in India including Reliance, Airtel, ITC, and TCS are already said to be experimenting with crypto and blockchain solutions.
In February, RBI Governor Sanjay Malhotra said that the under-development discussion paper on crypto will provide clarity on the future of virtual assets in the country. The paper will likely explore regulatory measures, including potential consequences for crypto-related legal violations, while detailing steps to balance sector growth and maintaining the national and financial security. Economic Affairs Secretary Ajay Seth previously stated that India is reassessing its stance on cryptocurrency in light of the pro-crypto announcements made by US President Donald Trump.
