India Recommends Local Regulators to Monitor Crypto Trading Activities
The Securities and Exchange Board of India (SEBI) has proposed that multiple regulators should be involved in overseeing cryptocurrency trading within the country, according to documents recently reviewed by Reuters.
These documents recommend that regulatory oversight should be divided among various financial authorities in India. In another document, the Reserve Bank of India (RBI) expressed concerns that digital currencies present macroeconomic risks to the country.
Government officials have submitted these documents to a panel tasked with advising the finance ministry on policy matters.
SEBI’s recommendation entails that instead of a single unified regulator, different regulatory bodies should collectively oversee digital asset activities within their respective domains.
SEBI would be responsible for monitoring digital assets classified as securities, overseeing initial coin offerings, and issuing licenses for financial products. The Reserve Bank of India would handle the oversight of fiat-backed stablecoins.
