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Indian market regulator suggests shared crypto oversight even as RBI seeks to ban stablecoin: Reuters
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India’s markets regulator has suggested that multiple regulators oversee cryptocurrency trading, Reuters reported.
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The suggestion was made to a government committee charged with formulating a policy to submit to the finance ministry.
India’s markets regulator has recommended that oversight of cryptocurrency trading be handed over to multiple authorities, Reuters reported.
The Securities and Exchange Board of India’s (SEBI) suggestion was made to a “government panel” tasked with formulating policy for the finance ministry to review, Reuters said, citing documents. He added that the group could submit its report by June.
SEBI’s position differs from that of the Reserve Bank of India (RBI), which “remains supportive of a ban on stablecoins”, according to a person with direct knowledge of the panel’s discussions cited by the report. The RBI has repeatedly stated that it views cryptocurrencies as a existential threat to political sovereignty.
According to the report, SEBI said it may monitor cryptocurrencies that take the form of securities as well as initial coin offerings (ICO); the RBI could regulate assets backed by fiat currencies such as stablecoins; and the Insurance Regulatory and Development Authority of India (IRDAI) could oversee insurance and pension-related virtual assets along with the Pension Fund Regulatory and Development Authority (PFRDA).
Investors’ grievances regarding cryptocurrencies should be resolved under India’s consumer protection law, the report said.
India is in the midst of national elections with results scheduled for June 4. Jayant Sinha, Chairman of the Parliamentary Standing Committee on Finance told CoinDesk in December The country is unlikely to introduce a legislative bill specific to crypto or Web3 in the near future, perhaps not before mid-2025.
India’s crypto policy is largely in the hands of the Finance Ministry, which has refused to say whether crypto is legal or illegal in the country, while imposing high taxes on the sector.
However, signals of changing credibility for crypto have emerged.
Last year, the Ministry of Finance took the lead in India’s efforts. president of the G20 to frame a global consensus around cryptography. An official later said India would analyze and decide its own position on crypto in the coming months. Last week, another ministry official said the registration of more than 46 crypto-related companies with the country’s financial intelligence unit signals a shift in credibility, even if legitimacy falls under the responsibility of political decision-makers.
SEBI, RBI, India’s Ministry of Finance, IRDAI and PFRDA did not respond to a request for comment from CoinDesk.