India SEBI Proposes Multi-Regulator Approach to Crypto, Unlike RBI's Ban Stance
India's approach to cryptocurrency regulation may be about to change significantly. Unlike the Reserve Bank of India's (RBI) previous stance advocating for a total ban, the Securities and Exchange Board of India (SEBI) is proposing a shared regulatory approach to cryptocurrencies. This signifies a potential shift towards a more nuanced and comprehensive framework for managing the burgeoning crypto market.
SEBI's Multi-Regulator Framework for Crypto Oversight
A recent development indicates the Securities and Exchange Board of India [SEBI] has suggested that multiple regulators should oversee the cryptocurrency market. Official documents disclosed by Reuters reveal that SEBI recommended that different regulators should work in unison to oversee the cryptocurrency sector in India.
India's Securities and Exchange Board (SEBI) has made a proposal to advocate for the oversight of cryptocurrency trading by multiple regulators, reveals a Reuters report. SEBI envisions a system where various agencies contribute their expertise to ensure responsible and effective crypto regulation.
What SEBI Would Oversee
Specifically, SEBI's role within this multi-regulator framework would involve overseeing Initial Coin Offerings (ICOs) and equity-linked crypto assets, focusing on investor protection and market integrity. By 2025, the Securities and Exchange Board of India (SEBI) proposed a multi-regulator framework for overseeing cryptocurrency activities, indicating a shift towards a more regulated environment.
The Potential Benefits of a Multi-Regulator Approach
The Securities and Exchange Board of India has recommended a multi-regulatory approach for overseeing the crypto trade in India, with different regulators specializing in specific areas. This division of labor is intended to leverage the strengths of each regulatory body, leading to more effective monitoring and enforcement. On, the Securities and Exchange Board of India (SEBI) suggested that multiple regulators oversee cryptocurrency trading in the country. This proposal was made to a high-level committee, signaling the seriousness of the discussion.
This multi-faceted regulatory strategy promises a more balanced and sustainable approach to cryptocurrency management in India, moving away from the previously proposed blanket ban.