India's Market Regulator Proposes Shared Crypto Oversight Even as RBI Seeks Stablecoin Ban

India's markets regulator has recommended that oversight of cryptocurrency trading should be vested in several authorities, Reuters reported.

The Securities and Exchange Board of India's (SEBI) suggestion was made to a "government panel" tasked with formulating policy for the finance ministry to consider, Reuters said, citing documents. It added that the panel could submit its report by June.

SEBI's position differs from that of the Reserve Bank of India (RBI), which "remains in favour of a ban on stablecoins," according to a person with direct knowledge of the panel's discussions cited by the report. The RBI has repeatedly said it views cryptocurrencies as an existential threat to policy sovereignty.

According to the report, SEBI said it could monitor cryptocurrencies that take the form of securities as well as initial coin offerings (ICO); the RBI could regulate assets backed by fiat currencies such as stablecoins; and the Insurance Regulatory and Development Authority of India (IRDAI) could oversee insurance and pension related virtual assets with the Pension Fund Regulatory and Development Authority (PFRDA).

Investor grievances in cryptocurrencies should be resolved under India's Consumer Protection Act, the report said.

India is in the middle of national elections, with results scheduled for June 4. Jayant Sinha, chair of the parliament's Standing Committee on Finance said in December that the country is unlikely to bring a crypto or Web3-specific legislative bill anytime soon, possibly not before mid-2025.

(Source: CoinDesk)