April 21, 2024

Could India Be Headed For Crypto Regulation?

Could India Be Headed For Crypto Regulation

Questions have arisen about the next move for India after it was reported that the country sent senior regulatory officials to Crypto friendly countries in the fiscal year 2017-18. According to the report, the government sent Securities and Exchange Board of India officials to Switzerland, the UK, and Japan to learn more about Cryptocurrencies and initial coin offering. The agency sees such visits as essential in getting a deeper understanding of the new technology. Cryptocurrencies remain banned until the country’s Supreme Court gives a ruling on September 11.

India Sent Officials To Crypto Friendly Countries

The Securities and Exchange Board of India (SEBI) sent some officials to three Crypto-friendly countries according to its 2017-18 annual report. The agency sent the officials to study how regulators in the three countries handle the virtual currencies.

According to the report, SEBI regularly sends its officials to other countries to study how the regulators deal with some emerging issues. The report added that the visits have been crucial in enabling the agency get a deeper understanding of processes and mechanisms. SEBI has greatly benefited from such tours in the past enabling the agency to improve the processes within it.

The study tours saw SEBI officials interact with their counterparts from Switzerland’s Swiss Financial Market Supervisory Authority (FINMA), UK’s Financial Conduct Authority (FCA), and Japan’s Financial Services Agency (FSA). The visits have seen the Indian officials learn more about the virtual currencies and initial coin offerings from the three regulators.

RBI Has Also Sent Officials Overseas

The Reserve Bank of India (RBI) is another Indian regulator that regularly sends its officials to other countries. In its 2017-18 annual report, the country’s central bank had a section for Cryptocurrencies. According to the report, it is clear the regulator is determined to learn how regulators in other countries are handling Cryptocurrencies.

According to the report by the central bank, different jurisdictions have reported to Cryptocurrencies with some taking a harsh stand while others opting for a regulatory approach. The reported also identified Japan and South Korea as having the largest Crypto markets in the world. Coincidently, the two countries have taken a soft stance on the new technology and established Cryptocurrency regulations.

The Indian Crypto Market

India had a thriving Cryptocurrency market before RBI banned financial institutions from providing banking services to Crypto firms. When the central bank issued the circular in April, Coindelta, one of the Cryptocurrency exchanges, through its co-founder said several firms were considering relocating to other countries. Shubham Yadav told Quartz among the countries the Indian-based Crypto firms were considering moving to include the Cayman Islands, Dubai, Japan, Malta, Estonia, and Singapore among others.

For some time, the Indian government has been in the race to put Cryptocurrency regulations in place as early as July this year according to Chandra Garg. Nevertheless, the Secretary in the Department of Economic Affairs recently revealed that it has been a challenge to have the regulations in the given time. Recently, Mr. Garg, who is also the chair of the panel established in December with the responsibility of proposing Crypto regulations, revealed that they are unlikely to complete the task before the end of the year.

The Indian Crypto traders are eagerly waiting for the country’s Supreme Court to give a final ruling on the Cryptocurrency ban imposed by RBI. It has been revealed that SEBI will also attend the September 11 hearing. Cryptocurrency investors in the country are optimistic that the ban will be lifted allowing them to resume their business.

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