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India’s market regulator suggests shared oversight of cryptocurrencies even as RBI calls for stablecoin ban: Reuters
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India’s markets regulator has suggested that several regulators oversee cryptocurrency trading, Reuters reported.
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The suggestion was made to a government committee tasked with formulating a policy to be submitted to the Ministry of Finance.
India’s markets regulator has recommended that oversight of cryptocurrency trading be handed over to several authorities, Reuters reported.
The Securities and Exchange Board of India (SEBI) suggestion was made to a “government panel” tasked with formulating a policy for the finance ministry to consider, Reuters said, citing documents. He added that the panel could submit its report by June.
SEBI’s position differs from that of the Reserve Bank of India (RBI), which “remains in favor of banning stablecoins,” according to a person with direct knowledge of the panel discussions cited in the report. The RBI has repeatedly stated that it views cryptocurrencies as a existential threat to political sovereignty.
According to the report, SEBI said it can monitor cryptocurrencies in the form of securities as well initial coin offerings (ICO); the RBI could regulate assets backed by fiat currencies such as stablecoins; and the Insurance Regulatory and Development Authority of India (IRDAI) could oversee insurance- and pension-related virtual assets along with the Pension Fund Regulatory and Development Authority (PFRDA).
Complaints from cryptocurrency investors should be resolved under India’s Consumer Protection Act, the report said.
India is in the midst of national elections, the results of which are due on June 4. Jayant Sinha, Chairman of the Parliamentary Standing Committee on Finance he told CoinDesk in December that the country is unlikely to come up with a crypto- or Web3-specific bill anytime soon, possibly not before mid-2025.
India’s cryptocurrency policy has largely been in the hands of the Finance Ministry, which has refused to say whether cryptocurrencies are legal or illegal in the nation, while imposing stiff taxes on the sector.
However, signs of changing credibility for cryptocurrencies are emerging.
Last year, the Finance Ministry led India’s push president of the G20 to frame the global consensus around cryptocurrencies. An official later said India would analyze and decide its position on cryptocurrencies in the coming months. Last week, another ministry official said the registration of more than 46 cryptocurrency-related companies with the national financial intelligence unit signals a shift in credibility, even if legitimacy falls under the control of policy makers.
SEBI, RBI, India’s Ministry of Finance, IRDAI and PFRDA did not respond to a request for comment from CoinDesk.
To know more: Binance and KuCoin gain registration from India’s anti-money laundering regulator as cryptocurrency credibility improves