**COINS Act model law offers blueprint for crypto regulation in India**

Introducing the COINS Act

Web3 venture firm Hashed Emergent and policy advisory group Black Dot have released a model crypto law aimed at clarifying India’s regulatory framework around digital assets. The Crypto-systems Oversight, Innovation and Strategy (COINS) Act offers a legislative blueprint to support a clearer, industry-led policy environment for crypto in India. This model law is non-binding and does not carry any legal effect unless formally introduced and passed by the Indian parliament. However, it provides policymakers with a blueprint on crypto-related digital rights such as self-custody, protocol access, and financial privacy.

Key Recommendations of the Model Law

The COINS Act recommends the creation of a new regulatory body called the Crypto Assets Regulatory Authority (CARA) to oversee crypto activities in India. It incorporates global standards from the European Union’s Markets in Crypto-Assets Regulation (MiCA) and Singapore’s regulatory sandbox, tailored to India’s market and constitutional context. The model law addresses key legal pain points in the country, including punitive taxation, regulatory uncertainty, and the absence of a dedicated crypto regulator.

Impact on India's Crypto Ecosystem

The creators of the COINS Act believe that regulatory uncertainty in India necessitated the development of this model law. The framework aims to provide builders and users with express legal rights to self-custody, privacy, and permissionless protocol access. Under India’s current tax regime, profits from selling virtual digital assets are taxed at a 30% flat rate, adding to the challenges faced by crypto stakeholders in the country. The COINS Act seeks to enshrine fundamental crypto rights as extensions of India’s Constitution, providing clarity and legal protection to the crypto community.

Future Plans and Collaboration

Hashed Emergent and Black Dot plan to engage with various stakeholders in India, including the Ministry of Finance, Securities and Exchange Board of India, and the Reserve Bank of India, to present the model law's concepts for further discussion. By aligning with crypto’s “strength in numbers” ethos, the creators of the COINS Act hope to push for favorable crypto policies through community collaboration. Ultimately, the model law aims to transform India into a destination of choice for crypto innovation, providing a regulatory framework that fosters growth and compliance within the industry.