The Bharat Web3 Association (BWA), a non-governmental crypto organization that includes industry stakeholders, has issued detailed guidance to promote security business practices for Web3 service providers in India. Hosted by former FICCI Secretary General Dilip Chenoy, the BWA launched two comprehensive sets of guidance this week focusing on ensuring safe and equitable service products. These guidelines are primarily directed at Virtual Asset Service Providers (VASPs).
On January 7, BWA launched its “Cybersecurity and Fair Trading Guide”, highlighting the importance of ethical, transparent and compliant operations to virtual asset service providers (VASPs). These directives are designed to integrate powerful risk management solutions to enhance financial security for the Indian investor community.
India’s VASP lasts until June 2025 to align its operations with these guidelines.
Highlights of BWA’s Fair Trading Guide
The BWA insists that VASPs should be wary of immoral trading practices and market manipulation strategies to ensure the financial security of traders. Web3 agencies claim that directives have been orchestrated to align with Indian regulations and international best practices.
The BWA has instructed its members to provide customers with transparent information on asset listing, market prices and trading rules. VASP is also instructed to implement measures for detecting activities such as WASH trading, insider trading and pumping planning schemes. In addition, the BWA encourages programs to educate investors on safe trading practices.
The guide further authorizes that unauthorized employees of Web3 companies must restrict access to sensitive or non-public information related to user orders or transactions. It is clearly prohibited to “move forward”. When an entity uses the internal knowledge of an upcoming transaction to execute a transaction, a progress occurs, taking advantage of the expected market changes.
Key points of cybersecurity guide
The BWA notes that in the growing number of hackers and scams, these rules have been put together to help VASP protect its integrity, security and confidentiality.
These guidelines encourage VASP to educate users on security practices while ensuring overall security and compliance with their business and operations.
These documents detail the security testing practices of BWA-approved asset custody services and exchange platforms. They delve into secure customer data protection practices, including making the investor community aware of market DOS and NOTS.
India’s position on cryptography
According to information shared by Secretary of State (MOS) Finance Pankaj Chaudhary in December 2024, the government has not set a specific timetable to finalize the law to oversee the Web3 sector.
In India, cryptocurrency earnings are currently 30%. Crypto companies intending to operate in the country must be registered with the Financial Intelligence Unit (FIU) and comply with anti-money laundering regulations. Additionally, all communications must collect your customer (KYC) details from users.
In the ongoing discussions about formal encryption regulations, BWA has been implementing self-regulation measures for its member companies.
Last December, the BWA announced a new “ABCD” program that focuses on Web3 Security. Meanwhile, in April 2024, the BWA formulated self-regulation rules for the exchange’s token list.
Cryptocurrencies are unregulated digital currencies, not fiat currencies, and are subject to market risks. The information provided in this article is not intended and does not constitute any type of financial advice, transaction advice or any other advice or advice provided or endorsed by Tech Word News. Tech Word News is not responsible for any loss arising from any investments based on any suggestion, projection, or any other information contained herein.
