The RBI continues to support a ban on stablecoins, cryptocurrencies specifically designed to maintain a steady exchange rate with fiat currencies, making them less susceptible to extreme volatility
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According to documents recently reviewed by Reuters, the Securities and Exchange Board of India (SEBI) has suggested that multiple regulators oversee cryptocurrency trading in the country. This approach differs significantly from the Reserve Bank of India (RBI) stance, which has expressed concerns that private digital currencies pose a macroeconomic risk.
These documents recommend the establishment of a dedicated division within India’s financial authorities to handle regulatory oversight. Additionally, the Reserve Bank of India reiterated its position that digital currencies present a macroeconomic risk. Reuters reports that government officials have submitted these documents to a panel advising the country's finance ministry on policy matters.
Instead of a single unified regulator handling digital assets, SEBI suggested that various regulators should collectively oversee digital asset activities within their respective jurisdictions.
In this setup, SEBI would oversee digital assets classified as securities and initial coin offerings and handle the licensing for financial products. Meanwhile, the Reserve Bank would be responsible for regulating fiat-backed stablecoins.
The Insurance Regulatory and Development Authority of India would manage crypto-related insurance, while the Pension Fund Regulatory and Development Authority would oversee pension matters related to digital assets. Additionally, disputes between investors should be addressed under India's Consumer Protection Act.