India’s securities regulator has proposed that oversight of cryptocurrency trading should be divided among multiple authorities, according to a Reuters report. The Securities and Exchange Board of India (SEBI) made this recommendation to a government panel responsible for formulating finance ministry policy, with the panel expected to submit its report by June.
SEBI’s stance contrasts with that of the Reserve Bank of India (RBI), which reportedly supports a ban on stablecoins, considering cryptocurrencies as a threat to policy sovereignty.
SEBI suggested that it could monitor cryptocurrencies functioning as securities and initial coin offerings (ICOs), while the RBI could regulate assets backed by fiat currencies like stablecoins. Additionally, the Insurance Regulatory and Development Authority of India (IRDAI) could oversee virtual assets related to insurance and pensions, in coordination with the Pension Fund Regulatory and Development Authority (PFRDA). Investor complaints regarding cryptocurrencies would be addressed under India’s Consumer Protection Act.
Although India is amidst national elections with results expected by June 4, it is unlikely to introduce specific legislation for crypto or Web3 until at least mid-2025, according to Jayant Sinha, chair of the parliament’s Standing Committee on Finance. While the Finance Ministry has refrained from clarifying the legality of crypto in India, it has imposed significant taxes on the industry. However, there are signs of changing attitudes towards crypto credibility.
Last year, the Finance Ministry spearheaded India’s efforts as G20 president to establish global consensus on crypto. An official subsequently stated that India would formulate its position on crypto in the coming months. Recently, another ministry official noted that the registration of over 46 crypto-related firms with the nation’s financial intelligence unit indicates a shift in credibility, even though legitimacy remains a matter for policymakers to address.
May 2024, Cryptoniteuae
