India’s SEBI Open to Crypto Oversight, RBI Seeks Stablecoin Ban
The Securities and Exchange Board of India (SEBI) proposed a collaborative effort among regulators to oversee cryptocurrency trading on Thursday, while the Reserve Bank of India (RBI) seeks a stablecoin ban.
SEBI’s proposition signals a willingness to embrace private virtual assets – an approach previously not seen in India.
The RBI sees private digital currencies as a potential macroeconomic risk, however.
As per the Reuters report, these suggestions were made to a “government panel” tasked with formulating policy for the finance ministry to consider.
SEBI recommended that various regulators oversee cryptocurrency-related activities falling under their domain in its proposition. Additionally, it suggested avoiding a single unified regulator for digital assets.
SEBI stated it could monitor cryptocurrencies categorized as securities and Initial Coin Offerings (ICOs). SEBI could also issue licenses for equity market-related products.
#SEBI (Securities and Exchange Board of India) is open to the oversight of #crypto trade, in contrast to #RBI (Reserve Bank of India).
Both regulators submitted their reports on #Crypto to #GOI (Government of India) wherein RBI took a tough stance whereas SEBI was liberal. pic.twitter.com/cWQ40rQJ7W
— JDC.UNI.ETH (@jdivaker) May 16, 2024
This would be similar to the US, where securities and crypto exchanges are regulated by the Securities and Exchange Commission (SEC).
The Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) should regulate virtual assets related to insurance and pensions, according to the proposal.
It also recommended that the grievances of investors trading in cryptocurrencies should be resolved under
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