Ajay Tyagi, the Chairman of Securities and Exchange of Board of India told the rules on cryptocurrencies and the role of regulators on the same should be out soon.
India next to finalise the Rules and Regulations for virtual currencies
Amidst the growing concerns about the investors’ security, volatility in bitcoin prices and countries struggling to regulate cryptocurrencies all over the globe, Ajay Tyagi, the chairman of Securities and Exchange Board of India (Sebi), said the regulations on cryptocurrencies should be out soon. Moreover, he mentioned that the role various regulators will be playing is getting finalised.
On Saturday, the Chairman was quoted as saying to the reporters:
“The day Budget was presented, on the next day itself, we have requested DEA (Department of Economic Affairs) to call a meeting of that very quickly…We want first a policy to be framed…We have actually decided that which regulator will do what and we want that the committee should come out with the regulations very quickly and we will fully contribute to this.”
At the beginning of this month, Arun Jaitley announced that cryptocurrencies are not a legal tender and further talked about the committee that is being set up to examine the digital currencies. He also explained that any decision on the same will be taken only once the committee releases its report.
Examining the potential of crypto and launching its own cryptocurrency
Ajay Tyagi is also part of this committee that was formed by the government to examine the virtual currencies including bitcoin, thoroughly. This inspection would involve the pros and cons of cryptocurrencies along with launching country’s own cryptocurrency. He said that a policy on the same should come out first and only then the role of Sebi, whatever it may be, can be outlined.
The major concern right now for most of the regulators around the world is the increasing number of hacks occurring in the recent time. Virtual currencies are stored in the digital format that makes them vulnerable to malware attack, hacking and loss of password. Any of these events could also result in permanent loss of money.
Tyagi also commented with “As of now, Finance Minister Arun Jaitley has said that cryptocurrencies are not a legal tender.”
It would be interesting to watch what kind of decision the committee reaches on regarding virtual currencies and what would be the role of Sebi on the same. Do you think it would be towards adopting the cryptocurrencies or would it be a strict crack down on them? Let us know your thoughts in our comment section below!
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.