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crypto news: SEBI considers regulatory role in crypto trading, diverging from RBI’s approach. Here’s what the experts think
In a significant development in India’s crypto scene, the Securities and Exchange Board of India (SEBI) recommended that several regulators oversee crypto trading across the country. This measure aroused considerable interest within India crypto communityGiven the RBIthe historically strict control of digital assets.
It is important to highlight that since 2018, the RBI has maintained tight control over cryptocurrencies, prohibiting banks and other regulated entities from facilitating crypto transactions. However, SEBI’s recent proposal for a multi-regulatory approach to overseeing crypto trading injected a sense of anticipation into the market.
Reacting to this development, Edul Patel, CEO of Mudrexexpressed optimism, stating, “SEBI’s proposal for multiple regulators to oversee the Virtual Digital Assets (VDAs) sector represents a balanced and pragmatic approach. This move can ensure comprehensive oversight by leveraging the experience of several financial authorities, thereby increasing regulatory clarity. It is a progressive stance that recognizes the multifaceted nature of VDAs. Furthermore, it can help with the construction investor confidencesince a well-regulated environment reduces the likelihood of market abuses and improves the overall health of the ecosystem.”
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Similarly, Ashish Singhal, co-founder of CoinSwitchshared his views, highlighting the potential role of SEBI in promoting an enabling environment regulatory environment for encryption. He said: “Encouraging views on crypto from the Securities and Exchange Board of India (SEBI), who oversaw India’s thriving stock markets. A favorable regulatory environment has paved the way for greater consumer adoption in several other sectors in the past, such as telecommunications, information technology, e-commerce, etc. However, great news for crypto in India.”SEBI’s approach mirrors that of regulatory frameworks in countries like the United States, where oversight extends to crypto assets categorized as securities as well as emerging offerings such as initial public offerings. coins (ICOs).RBIs concerns
In its observations, the RBI said that cryptocurrencies could lead to tax evasion and that decentralized peer-to-peer (P2P) activities in cryptocurrencies would depend on voluntary compliance – both posing risks to fiscal stability. seigniorage income, which is the profit made by a central bank from the creation of money. RBIThe 2018 orders were challenged by the industry and annulled by the Supreme CourtThe central bank has asked financial institutions to strictly comply with strict rules on money laundering and foreign exchange, effectively keeping cryptocurrencies out of India’s formal financial system.
Still, the trade flourished and in 2022 the government introduced a tax on crypto transactions in India to discourage such trade. It then asked all exchanges to register locally before facilitating crypto transactions from within the country.
According to a PwC report from December, 31 countries have regulations in place that allow cryptocurrency trading.
(With contributions from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of the Economic Times)