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Unlike the RBI, Sebi is open to supervising cryptocurrency trading
Sebi is open to supervising cryptocurrency trading
According to a recent exclusive media report, the Securities and Exchange Board of India (Sebi), India’s market watchdog has suggested that several regulators are overseeing cryptocurrency trading, which indicates that there are some authorities in the country, who are still willing to allow the use of private virtual assets. Sebi’s position is different from that Reserve Bank of India (RBI)which argues that private digital currencies pose a macroeconomic risk, separate documents show.
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Both sets of documents were submitted to a government committee tasked with formulating a policy for submission to the Ministry of Finance. Sebi’s position has not been disclosed so far. Additionally, India has taken a tough stance on cryptocurrencies since 2018, when the central bank banned lenders and other financial intermediaries from dealing with cryptocurrency users or exchanges. This ban was later struck down by the Supreme Court. In 2021, the government drafted a bill to ban private cryptocurrencies, although it was not introduced. Last year, when it was president of the G20, India called for a global framework to regulate these goods.
Ashish Singhal, co-founder of CoinSwitch, a crypto app, says, “Encouraging views on #cryptocurrencies from Sebi overseeing India’s thriving stock markets. Favorable regulatory environment has paved way for greater adoption by of consumers in many other sectors in the past, such as telecom, information technology, e-commerce, etc. This is a start and many nuances will have to be discussed However, great news for cryptocurrencies in India of a consultative approach to cryptocurrency regulation in India. We continue to engage with the right stakeholders to create a balanced policy and regulatory environment.”
According to a recent media report, the RBI still supports the ban on stablecoins. According to media reports, a source, who wished to remain anonymous, said the commission intended to finalize its report by June. Stablecoins are cryptocurrencies designed to maintain a stable exchange rate with fiat currencies, making them less prone to extreme volatility.
In its submissions to the government committee, Sebi suggested that multiple regulators should supervise cryptocurrency-related activities that fall under their domain and that a single unified regulator for digital assets should be avoided. Sebi has indicated that he may oversee cryptocurrencies that take the form of securities, as well as new offerings called Initial Coin Offers (ICOs). Additionally, she may issue licenses for stock market-related products, according to the source close to the panel discussion.
Sebi has suggested that it may supervise cryptocurrencies that take the form of securities and new offerings called ICOs (Initial Coin Offers). According to those familiar with the panel’s work, the panel could also issue licenses for products linked to the stock market.