The SEBI (Securities and Exchange Board of India) has sent the government officials to visit Japan, United Kingdom and Switzerland to study the cryptocurrency and ICO (Initial Coin Offerings) from all of these countries’ financial regulators. These officials, acting as a watchdog, plans to learn the financial regulations and engage with the international regulators to gain a deeper understanding of the crypto mechanism system for improvising their own process in India.
The SEBI revealed in their annual report 2017-18 that it sent their officials to these three countries to study the regulation and how they deal with cryptocurrencies norms. The report explains, “SEBI on regular basis enables study tour of the SEBI officials to over authorities. These study tour helps engage with the international regulators and gain a deeper understanding of the systems and mechanism”. The securities watchdog noted that, “in the past, it has benefited a lot from such experiences and the knowledge transfer helps improve the processes within SEBI”.
For the fiscal year 2017-18, the regulator detailed, “SEBI organized study tours to Financial Services Agency (FSA) Japan, Financial Conduct Authority (FCA) United Kingdom, and Swiss Financial Market Supervisory Authroity (FINMA) Switzerland to study initial coin offerincs and cryptocurrencies”.
The RBI also confirmed it is keeping a close watch on the cryptocurrency market and vigilance team is ensuring that the ban on the Indian exchanges are followed as per the norms of the RBI. With this, the Indian exchanges are now looking for alternative and are planning to open their offices outside India. The preferred destinations are Singapore, Switzerland, Estonia, Malta, Japan, Dubai and the Cayman Islands. These locations either have no tax and nominal taxation and are ‘Crypto-friendly’.
The government of India is working on cryptocurrency regulations and according to Subhash Chandra Garg, who is the Secretary in Department of Economic Affairs, the proposal for regulation was to be ready by July 2018. But as of now, this is still pending for approval and the regulation may not come up until the year end of 2018. The government wants to be fool-proof regarding the norms about cryptocurrency without any loop holes.
Meanwhile, the ban on cryptocurrency had initiated many exchanges and Crypto enabled services institutions to file petitions in the country’s Apex court and the supreme court will be hearing all petitions filed by such organisations on 11th of September. The Crypto industry is hopeful that the court will lift the ban that has been imposed by the Reserve Bank of India.