Regulation
India’s securities regulator calls for regulation of cryptocurrencies; Turkey moves towards a licensing model
On May 16, Turkey and India put forward cryptocurrency-related policies that could create a regulatory framework for businesses and investors operating in each country.
Reuters he reported it The Securities and Exchange Board of India (SEBI) wants more regulators to oversee cryptocurrency trading in the country.
In its recommendation, SEBI said it could monitor crypto stocks, supervise initial coin offerings (ICOs), and issue licenses for stock market-related products.
Other agencies could regulate virtual assets related to insurance and pensions, while the Reserve Bank of India (RBI) would regulate cryptocurrencies backed by fiat currency.
SEBI’s request is in conflict with the RBI’s stand. The bank believes that private digital currencies pose a macroeconomic risk. He expressed concern about tax evasion, the need for voluntary compliance in P2P activities and the reduction of profits from central bank money creation.
SEBI and RBI have outlined their position in documents submitted for consideration by a government committee, which Reuters said could “confirm its report as early as June”.
Turkey’s draft law
Also Reuters reported that Turkey’s ruling party has tabled a bill that aims to make crypto companies comply with licensing and registration obligations.
If the proposed regulations are successful, cryptocurrency exchanges and other companies will have to obtain licenses from Turkey’s Capital Markets Board.
The draft law outlines the requirements and responsibilities regarding the management of the platform, the services offered and the operational standards. It aims to regulate certain activities, including purchases, sales and transfers of cryptocurrencies between individuals in Turkey and the storage of cryptocurrencies.
The law would also give the Capital Markets Board the authority to promote secondary regulation and create regulatory procedures for companies and their transactions.
Strict crypto positions
India and Türkiye both have strict crypto policies.
In 2021, Turkey banned the use of cryptocurrencies in payments, listing lack of regulatory controls, use in illegal activities, theft and irreversible transactions among its concerns.
In 2018, the Reserve Bank of India banned financial institutions from partnering with companies working with cryptocurrencies. Although the rule was later rescinded, broader financial regulations and the Reserve Bank apply continues to protest against legalization.
India has also taken other actions against cryptocurrencies, including issuance compliance notices to foreign cryptocurrency exchanges e impose IP bans on exchanges.
As a result, each of the latest developments advances regulations that could accommodate crypto activities in countries known for their harsh policies.