India’s securities regulator, the Securities and Exchange Board of India (SEBI), has called for the regulation of cryptocurrency trading in the country. SEBI’s recommendation proposes that multiple regulators oversee different aspects of the crypto industry, including monitoring crypto securities, overseeing ICOs, and issuing licenses for equity market-related products. Meanwhile, the Reserve Bank of India (RBI) would be responsible for regulating fiat-backed cryptocurrencies. This stance is in contrast to the RBI’s belief that private digital currencies pose macroeconomic risks. SEBI and RBI have submitted their positions to a government panel for consideration, with a report expected as early as June.
In a similar vein, Turkey’s ruling party has introduced a draft law aimed at licensing and registering crypto companies. If passed, this law would require crypto exchanges and other companies to obtain licenses from the Capital Markets Board of Turkey. The legislation outlines obligations and liabilities for platform management, services offered, and operational standards. It also grants the Capital Markets Board the authority to create regulatory procedures for crypto transactions.
Both India and Turkey have stringent crypto policies. Turkey recently banned the use of cryptocurrencies in payments, citing concerns about regulatory controls, illegal activities, theft, and irreversible transactions. In 2018, India’s Reserve Bank prohibited financial institutions from dealing with companies involved in crypto, although the ban was later overturned. Despite this, broader financial regulations still apply, and the Reserve Bank continues to discourage the legalization of cryptocurrencies. India has also taken measures against foreign crypto exchanges, issuing compliance notices and imposing IP bans.
These recent developments signal a shift towards regulatory frameworks that could accommodate cryptocurrency activities in countries with historically strict policies towards crypto.