The Securities and Exchange Board of India (SEBI) has called for a multi-agency framework to oversee cryptocurrency activities, emphasizing the need for a coordinated regulatory approach. This initiative aims to address the complex and evolving nature of the crypto market, ensuring comprehensive oversight and consumer protection.
SEBI suggests involving multiple regulatory bodies, including the Reserve Bank of India (RBI), the Ministry of Corporate Affairs, and the Department of Economic Affairs, to develop a robust regulatory framework. This coordinated effort is expected to enhance monitoring and enforcement capabilities, mitigate risks, and promote transparency within the crypto ecosystem.
The proposal comes amidst growing concerns over the potential risks associated with cryptocurrencies, including market volatility, fraud, and money laundering. By leveraging the expertise and resources of various agencies, the regulatory framework aims to strike a balance between fostering innovation and ensuring financial stability.
Additionally, SEBI highlights the importance of international collaboration, learning from global best practices to effectively regulate the crypto market. This multi-agency approach is seen as a critical step towards creating a safe and sustainable environment for cryptocurrency activities in India.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
