India’s Market Regulators Weigh Oversight on Cryptocurrencies

India's Market Regulators Weigh Oversight on Cryptocurrencies/Mint

VoM News Desk | May 16, 2024 | 03:59 PM IST | Breaking News | Follow on Google News

India’s Market Regulators Weigh Oversight on Cryptocurrencies

India’s Market Regulators Weigh Oversight on Cryptocurrencies

Key Highlights:

1. SEBI recommends multiple regulators oversee cryptocurrency trade, contrasting with RBI’s stance.
2. The government panel is considering SEBI’s recommendation for policy formulation.
3. SEBI proposes grievances resolution under India’s Consumer Protection Act for cryptocurrency investors.

India’s Securities and Exchange Board (SEBI) has recommended the oversight of cryptocurrency trade by several regulators, diverging from the Reserve Bank of India’s (RBI) stance, according to documents seen by Reuters. This signals a potential openness to private virtual assets in the country.

While SEBI proposes a multi-regulator approach, the RBI maintains concerns about macroeconomic risks associated with private digital currencies, the documents reveal. Both sets of documents have been submitted to a government panel tasked with formulating finance ministry policy.

India has been cautious about cryptocurrencies since 2018 when the RBI restricted financial intermediaries from dealing with crypto users. Despite subsequent legal challenges, the government has explored banning private cryptocurrencies, although a bill has not been introduced yet.

SEBI’s submission suggests oversight divided among various regulators based on cryptocurrency characteristics. It recommends resolving investor grievances under India’s Consumer Protection Act.

In contrast, the RBI expresses concerns about tax evasion and fiscal stability risks associated with cryptocurrencies, advocating for strict compliance with anti-money laundering and foreign exchange rules.

As discussions continue, India grapples with the regulatory landscape amidst a global trend towards embracing cryptocurrencies.

Source: Mint

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