India’s securities regulator pushes for crypto regulation as Turkey considers adopting licensing model
On May 16, Turkey and India introduced new crypto policies that aim to provide a framework for businesses and investors in each country.
According to Reuters, the Securities and Exchange Board of India (SEBI) is proposing that multiple regulators oversee crypto trading in the country. SEBI’s recommendations include monitoring crypto securities, overseeing initial coin offerings (ICOs), and issuing licenses for equity market-related products. Other agencies would regulate insurance and pension-related virtual assets, while the Reserve Bank of India (RBI) would oversee fiat-backed cryptos.
SEBI’s stance contrasts with RBI’s position, as the central bank views private digital currencies as a macroeconomic risk due to concerns about tax evasion, compliance with P2P activities, and reduced profits from central bank money creation. Both SEBI and RBI have submitted their positions to a government panel for review.
Turkey’s draft law
In addition, Turkey’s ruling party has presented a draft law that would require crypto companies to obtain licenses from the Capital Markets Board to operate in the country. The proposed regulations outline requirements for platform management, offerable services, operational standards, and the regulation of crypto activities within Turkey.
Strict crypto stances
Both India and Turkey have strict crypto policies in place. Turkey banned the use of crypto in payments in 2021 due to concerns about lack of regulation, illegal activities, theft, and irreversible transactions. Meanwhile, India’s Reserve Bank previously banned financial institutions from working with crypto companies, a rule that was later overturned but broader financial regulations still apply.
India has also taken measures such as issuing compliance notices to foreign crypto exchanges and imposing IP bans on these platforms. Despite their strict policies, the recent developments in both countries suggest a willingness to accommodate crypto activities within their regulatory frameworks.
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