India’s markets regulator reportedly backs shared crypto oversight — central bank differs
India’s markets watchdog, the Securities and Exchange Board of India (SEBI), proposed to a government panel that is formulating policy for consideration by the Finance Ministry that several different regulators share oversight of crypto trade, according to documents seen exclusively by Reuters.
The central bank, the Reserve Bank of India (RBI), took a tougher stance by maintaining that crypto is a macroeconomic risk, according to another set of documents submitted to the panel and also seen by Reuters.
The RBI also favours 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 panel may have its report completed by June.
Some history
The central bank in 2018 prohibited lenders from dealing with crypto users or exchanges, which was later struck down by the Supreme Court, the Reuters report noted.
RBI Governor Shaktikanta Das predicted in 2022 that the next financial crisis would come from crypto: “Our view is that it should be prohibited 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.”
