As an analyst with a background in financial regulation, I believe that India’s proposed multi-agency approach to cryptocurrency oversight is a step in the right direction. The diversity of applications and complexities involved in the crypto sector necessitate a collaborative effort among different regulatory bodies to ensure effective and comprehensive supervision.
India’s Securities and Exchange Board of India (SEBI) advocates for a collaborative effort in regulating cryptocurrencies, suggesting involvement from multiple regulatory agencies.
As a crypto investor, I’ve come across some intriguing news: Reuters has released documents indicating that the Securities and Exchange Board of India (SEBI) proposed a coordinated approach among various regulatory bodies to monitor the cryptocurrency market within our country. These recommendations were submitted to an advisory committee for the Ministry of Finance.
According to the proposal, SEBI is proposed to oversee the regulation of cryptocurrencies identified as securities, in addition to initial coin offerings. They will also be responsible for granting licenses for associated products.
The Insurance Regulatory and Development Authority of India (IRDAI) is responsible for overseeing all insurance matters pertaining to cryptocurrencies. Concurrently, the Pension Fund Regulatory and Development Authority (PFRDA) will regulate pension-related issues concerning cryptocurrencies.
The proposition advocates utilizing the country’s Consumer Protection Act to resolve investor conflicts.
The proposal has been made for the Reserve Bank of India (RBI) to serve as the regulatory body for fiat-backed stablecoins. However, the RBI has adopted a more cautious stance when it comes to cryptocurrencies.
According to well-informed sources, the Reserve Bank of India (RBI) expresses strong opposition towards the use of stablecoins and is considering implementing a complete prohibition due to fears over potential tax evasion.
The warning from the agency is that decentralized transactions between individuals using cryptocurrencies are reliant on self-regulation, making them potentially hazardous for financial security.
“The RBI’s stance that cryptocurrencies could lead to revenue losses for central banks through money creation is a new revelation in the ongoing debate. Nevertheless, the formation of an inter-ministerial committee to oversee Virtual Digital Assets (VDAs) is a positive move for our industry. This step aligns with our expectations, considering the vast potential applications of VDAs.”
Chenoy mentioned that the government is soliciting industry perspectives to influence the country’s regulatory framework, and the Broadband Wireless Association (BWA) is in the process of preparing a detailed submission for this purpose.
Amidst the ongoing regulatory efforts in India, the Financial Intelligence Unit (FIU) has been advocating for foreign cryptocurrency service providers to secure necessary licenses. As of now, only KuCoin and Binance have responded by meeting these prerequisites.
The Financial Intelligence Unit (FIU) has been actively involved in driving adherence to regulatory standards among market players within the country. At a recent training session for Virtual Asset Service Providers (VASPs), FIU Director Vivek Aggarwal underscored the significance of abiding by the Anti Money Laundering/Countering the Financing of Terrorism (AML/CFT) guidelines.
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2024-05-17 14:36