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The central bank of India may have avoided cryptocurrencies, but its market regulator is inclined to understand them.
The Securities and Exchange Board of India (SEBI) has sent teams on international study trips to understand how other countries have managed virtual money, its annual report published last month said.
The teams visited the financial services agency of Japan, the Financial Conduct Authority of the United Kingdom and the Swiss Financial Market Supervisory Authority during organized trips to study the first offers of coins and cryptocurrencies . However, the report does not mention when the visits took place.
The Indian government is also trying to understand the ecosystem so that it can be regulated. The president of the SEBI Ajay Tyagi is also in the committee appointed by the government that tries to understand it. Other members include BP Kanungo, deputy governor of the Reserve Bank of India (RBI), Subhash Chandra Garg, secretary in the economic affairs department, who directs the working group on the guidelines for the end of the year.
While cryptocurrencies do not represent a systemic risk at the moment, they can not be ignored, Tyagi had said earlier. The first offers of coins, equivalent to initial public offers in the stock markets, were also included in the SEBI scanner.
"We are happy that the government and regulators are trying to understand the system, but what is the point if it is not producing any results," an official of a cryptocurrency exchange based in New Delhi has requested, asking ; anonymity. "On various occasions, we have also presented various representations to the various stakeholders to help them better understand the outlines, but so far we have not seen positive results."
SEBI's attempts are far from the position adopted by the RBI.
In June, the central bank agreed to have cracked cryptocurrencies without consulting the laws or research conducted by other countries. In April, he directed all banks to reduce all accounts and trade relations with virtual currency traders and traders within three months.
However, now the RBI fears it may push the industry underground, fueling other illicit activities.
All eyes are now on the September 11 hearing in the supreme court where the exchanges have challenged the RBI diktat. In addition to the central bank, SEBI, the Narendra Modi government, the direction of the order forces and the income tax department are parts of the case.
