Markets
Indian markets regulator reportedly supports shared crypto oversight – central bank disagrees – DL News
- Reuters reported that India’s markets regulator supported sharing crypto oversight.
- The central bank took a harder line with a panel formulating a policy proposal.
- The committee could finalize its proposal to the Finance Ministry by June, Reuters reported.
India’s markets watchdog, the Securities and Exchange Board of India (SEBI), has proposed to a government panel that formulates policy for review by the Finance Ministry that several different regulators share oversight of crypto trading, according to to documents consulted exclusively by Reuters.
The central bank, the Reserve Bank of India (RBI), has taken a tougher stance by saying crypto poses a macroeconomic risk, according to another set of documents submitted to the panel and also seen by Reuters.
The RBI also favors a ban on stablecoins, a person with direct knowledge of the panel’s discussions told Reuters.
The person, who declined to be identified, said the committee’s report could be completed by June.
A little history
In 2018, the central bank banned lenders from dealing with crypto users or exchanges, which was later overturned by the Supreme Court, according to the Reuters report.
Shaktikanta Das, RBI Governor predicted in 2022, that the next financial crisis would come from crypto: “Our view is that it should be banned because if you try to regulate it and allow it to grow, please mark my words, the next financial crisis will come from private cryptocurrencies. »