The Securities and Exchange Commission of India recommends jointly regulating cryptocurrencies with other agencies in the country, contrary to the stance of the country’s central bank

PANews, May 16: According to Reuters, India’s market regulator has recommended that multiple regulators regulate cryptocurrency trading, which is the strongest signal yet that at least some authorities in the country are willing to allow the use of private virtual assets. . Another document showed that the Securities and Exchange Board of India’s (SEBI) stance contrasts with that of the Reserve Bank of India (RBI), which believes that private digital currencies represent macroeconomic risks.

Both sets of documents, seen by Reuters, were submitted to a government panel tasked with developing policy for consideration by the Treasury Department. SEBI's stance has not been reported before. India has taken a tough stance on cryptocurrencies since 2018, when the Reserve Bank of India banned lenders and other financial intermediaries from dealing with crypto users or exchanges, a move that was later struck down by the Supreme Court.

The Reserve Bank of India still supports a ban on stablecoins, according to a person with direct knowledge of the group’s discussions, and the group plans to finalize its report as early as June. However, SEBI, in its submission to the government panel, recommended that different regulators should oversee activities related to cryptocurrencies that fall under their jurisdiction and that a single unified regulator for digital assets should be avoided. SEBI said it can monitor cryptocurrencies in the form of securities as well as ICOs. It may also issue licenses for stock market-related products, people familiar with the group's discussions said.