Documents obtained from reuteur reveals that the India SEBI has recommended that multiple regulators supervise crypto trade in India.
According to recently released documents obtained by Reuters, the India SEBI has recommended that many regulators supervise cryptocurrency trade in the nation.
The documents recommend that a section of India’s financial agencies carry out the regulatory monitoring. The Reserve Bank of India (RBI) stated in a different document that the nation’s macroeconomic stability is at risk from digital currencies.
Reuters reports that government representatives forwarded the files to a group responsible for making policy recommendations to the country’s finance ministry.
In light of a single regulator handling digital assets, SEBI suggested that various authorities work together to supervise digital asset operations that fall within their purview.
India SEBI Recommends Crypto Trading Regulation
In this scenario, India SEBI would supervise digital assets classified as securities, issue licenses for financial goods and monitor initial coin offerings.
The Reserve Bank would supervise fiat-backed stablecoins in the interim. The Pension Fund Regulatory and Development Authority would oversee pension issues pertaining to digital assets, while the Insurance Regulatory and Development Authority of India would oversee insurance connected to cryptocurrencies.
India’s Consumer Protection Act should govern investor conflicts.The nation’s Reserve Bank is less optimistic about cryptocurrencies. Sources with knowledge of the situation claim that the RBI is in favor of outlawing stablecoins.
The agency also expressed concerns about the potential use of digital assets for tax evasion and emphasized the need for voluntary compliance in decentralized peer-to-peer cryptocurrency transactions, which could potentially jeopardize the stability of the economy.
The RBI further asserts that central banks may lose out on money creation revenue due to cryptocurrencies. India has been attempting to include digital assets in its regulatory structure.
The nation blocked the websites and mobile apps of the companies for customers in the country in December 2023 after sending 15 notices of noncompliance to international cryptocurrency exchanges.
As of this writing, the Financial Intelligence Unit has granted permission to only KuCoin and Binance to resume their activities. Recently, the Indian government issued a request to the G20, asking them to work together to regulate digital assets.