Regulation
India’s securities watchdog calls for crypto regulation; Turkey moves towards licensing model
Turkey and India advanced crypto policies on May 16 that could create a framework for businesses and investors operating in each country.
Reuters reported that The Securities and Exchange Board of India (SEBI) wants multiple regulators to oversee crypto trading in the country.
In its recommendation, SEBI said it could monitor crypto securities, supervise initial coin offerings (ICOs) and issue licenses for stock market-related products.
Other agencies could regulate virtual assets linked to insurance and pensions, while the Reserve Bank of India (RBI) would regulate cryptos backed by fiat currencies.
SEBI’s demand is contradictory to RBI’s position. The bank believes that private digital currencies pose a macroeconomic risk. He expressed concerns about tax evasion, the need for voluntary compliance in P2P activities and reduced profits from central bank money creation.
SEBI and RBI outlined their positions in documents submitted to a government panel for review, which Reuters said could “confirm its report as early as June.”
Turkey’s bill
Reuters also reported that Turkey’s ruling party has introduced a bill to force crypto companies to meet their licensing and registration obligations.
If the proposed regulations are successful, crypto exchanges and other companies must obtain licenses from the Capital Markets Board of Turkey.
The bill describes the requirements and responsibilities regarding the management of the platform, the services offered and operational standards. It aims to regulate certain activities, including peer-to-peer purchases, sales and transfers of cryptocurrencies in Turkey and the storage of cryptocurrencies.
The law would also grant the Capital Markets Board the authority to advance secondary regulation and create regulatory procedures for companies and their transactions.
Strict crypto positions
Both India and Turkey have strict crypto policies.
In 2021, Turkey banned the use of crypto in payments, citing lack of regulatory controls, use in illegal activities, theft and irreversible transactions among its concerns.
In 2018, India’s Reserve Bank banned financial institutions from engaging with companies that work with crypto. Although the rule was subsequently repealed, broader financial regulation applies and the Reserve Bank continues to oppose legalization.
India has also taken other steps against crypto, including issuing notice of conformity to foreign crypto exchanges and impose intellectual property bans on exchanges.
As a result, each of the latest developments advances regulations that could accommodate crypto activities in countries known for their strict policies.