The Security and Exchange Board of India (SEBI) has commissioned some of her officials to understudy the workings of cryptocurrency and initial coin offerings (ICOs) in UK, Japan, and Switzerland financial regulators.
The SEBI revealed in a report that it has sent some officials to three countries to study how the regulators there deal with cryptocurrencies.
This study aims to understand and engage with international regulators to gain a better knowledge of the mechanisms and how the systems work in order to improve its process.
The SEBI is not only Indian regulators that have been involved in understudying system in other countries. Recently the Indian Central Bank, The Reserve Bank of India (RBI) in their annual report 2017-2018 published a section on cryptocurrency. In the publication, the central bank wrote on the acceptability of cryptocurrency by most countries, after referencing how most foreign regulators manage its crypto market. It stated that:
“On a global level, regulatory responses to cryptocurrency have ranged from a complete clamp down in some jurisdictions to a comparatively light touch regulatory approach.”
Noting that Japan and South Korea account for the biggest shares of crypto asset markets in the world, it is therefore important to understand how they regulate the market from manipulations and frauds.
According to Subhash Chandra Garg, Secretary in the Department of Economic Affairs, the India government has long been working on steps to follow to regulate cryptocurrency trading in India. This regulation is intended to be ready by July as the panel set-up to look into it was commissioned in December last year.
This has led to the consideration of the feasibility of them issuing a rupee-backed digital asset which would be backed by the central bank digit currency.
This decision to go to other countries of the world to understand how cryptocurrency technology work was as a result of the ban by the government. The country’s apex court is hearing all the petitions.