The company was launched in 2017 and has raised seed funding of around USD 1 million for its operations
Alluma, a cryptocurrency exchange platform, is planning to raise an initial coin offering (ICO) of USD 25 million in a couple of months, said Akash Aggarwal, founder and CEO of the company.
ICO is the new democratic way for startups to raise money through issuance of crypto currency.
"We have built the product and planning to raise USD 25 million through an ICO. In a month or two we are going to raise money. We are following all the legal procedures and inputs from the lawyers for doing proper KYC in an ICO by blocking countries which are not supporting the ICOs," said Aggarwal.
The company was launched in 2017 and is headquartered in Singapore. It has raised seed funding of around USD 1 million for its operations.
While talking about the regulations of the cryptocurrency market, he said: "Why doesn't the government come out with some better KYC aiming policies if they are worried about money laundering. Many countries like Japan, Switzerland, US have strong KYC policies for regulating the cryptocurrency market. On our platform, we also follow strict KYC norms."
Cryptocurrency market in India
"The market in India is very big and I really want to help Indians to understand cryptocurrency. Though cryptocurrency is taken as a speculative thing, bitcoin was not created to trade, which is one of the reasons behind existence of blockchain. If bitcoin was all about trading, then blockchain won't be there," he said.
Taxation on cryptocurrency and trading
"Seeing the number of transactions in India, blockchain or trading is one of the biggest means of taxation for the government. They should make it compulsory with all the exchanges that they should report at the year-end all the details of trading on the platform. In that scenario, they will get taxes," he said.
Loopholes and UPI
"If regulators really want to control the market, one of the loopholes is UPI, which most of the exchanges have taken. It is based on just a mobile number. I feel regulators should control UPI if exchanges want to use UPI then they should deal with bank accounts, not with the mobile numbers," he said.
He added, "Government is not against blockchain, cryptocurrency or trading. They are trying to regulate trading because it deals with money which is controlled by RBI. They are trying to protect means of trading like stocks and shares. I will say regulators are perfectly correct and they should regulate and control the market when it comes to trading because they have to protect the consumers, stop money laundering and make sure that it is not going in the wrong hands."
Regulations for the cryptocurrency market in India
In its recent circular, the Reserve Bank of India gave three months to deal with cryptocurrency transactions and many exchanges feel that timeframe is not sufficient. However, Aggarwal feels that the central bank will be coming out with a positive move in three months."Government is worried about money laundering. I feel crypto exchanges and its consumers should have an account in the same bank. In that scenario, the bank can keep a track on how much money is going in and out from the consumer's account. RBI should make compulsory monthly reporting by the cryptocurrency exchanges," he signed off.