According to CoinDesk, India's market regulator, the Securities and Exchange Board of India (SEBI), has proposed that multiple authorities should oversee cryptocurrency trading. This recommendation was made to a government panel responsible for formulating policy for the Finance Ministry. The panel is expected to submit its report by June.
SEBI's stance contrasts with the Reserve Bank of India (RBI), which continues to support a ban on stablecoins. The RBI has consistently expressed its view that cryptocurrencies pose a significant threat to policy sovereignty. SEBI suggested that it could supervise cryptocurrencies that take the form of securities and 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, according to the report. India is currently in the midst of national elections, with results due on June 4. Jayant Sinha, chair of the parliament's Standing Committee on Finance, stated in December that the country is unlikely to introduce a crypto or Web3-specific legislative bill anytime soon, possibly not before mid-2025.
India's crypto policy has largely been determined by the Finance Ministry, which has not clarified whether crypto is legal or illegal in the country, while imposing heavy taxes on the industry. However, signs of a credibility shift for crypto have been emerging. Last year, the Finance Ministry led India's push as G20 president to establish a global consensus around crypto. An official later stated that India would analyze and decide its own position on crypto in the coming months. Last week, another ministry official said the registration of over 46 crypto-related firms with the nation's financial intelligence unit indicates a credibility shift, even if legitimacy falls under the purview of policy makers.
SEBI, RBI, India's Finance Ministry, IRDAI, and PFRDA did not respond to a request for comment.