Regulation
Indian securities and commodities watchdog SEBI indicates openness to crypto oversight
In a submission to the government panel, the Securities and Exchange Board of India (SEBI) said different regulatory bodies should address the oversight of cryptocurrencies. SEBI’s recent approach indicates a changing approach to crypto regulation in the country, resulting from a total ban by the Reserve Bank of India (RBI).
Key details of SEBI’s proposal on crypto regulation
According to India’s SEBI, it may monitor the cryptocurrency sector involving new offerings such as initial coin offerings (ICOs). Additionally, the regulatory agency indicated that it may issue licenses for all crypto products linked to the stock market.
At the same time, SEBI informed the government that the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) should regulate all virtual assets related to insurance. insurance and pensions.
Regarding crypto-related grievances, India’s SEBI has recommended that the National Consumer Protection Act be implemented. SEBI’s submission to the Indian government suggested that the RBI should regulate all crypto assets backed by fiat currencies.
In this regard, the RBI should further monitor concerns regarding crypto tax evasion and the risk to fiscal stability posed by cryptocurrencies.
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The Indian government is gearing up to regulate the Web3 industry and digital assets amid widespread adoption in the country. Although the country imposes a 30% crypto tax, the use of decentralized finance platforms has helped more investors operate outside of the traditional banking system.
Earlier this month, the director of India’s Financial Intelligence Unit (FIU), Vivek Aggarwal, announced the return of Binance and Kocoin after their respective IPs were banned last year.