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Advancements in Cryptocurrency Regulations in Turkey and India
Turkey and India have taken significant steps towards enhancing their cryptocurrency policies on May 16, paving the way for a more structured framework for businesses and investors operating within their borders.
Securities and Exchange Board of India’s Recommendations
According to a report by Reuters, the Securities and Exchange Board of India (SEBI) has proposed a system where multiple regulators would oversee cryptocurrency trading activities in the country. SEBI intends to monitor crypto securities, supervise initial coin offerings (ICOs), and issue licenses for products related to the equity market. On the other hand, other agencies would be responsible for regulating insurance and pension-related virtual assets, while the Reserve Bank of India (RBI) would oversee fiat-backed cryptocurrencies.
It is worth noting that SEBI’s recommendations are in contrast to the stance taken by the RBI, which views private digital currencies as a potential macroeconomic risk. The RBI has raised concerns regarding tax evasion, emphasized the importance of voluntary compliance in peer-to-peer (P2P) transactions, and highlighted the impact of reduced profits resulting from the creation of central bank money.
Both SEBI and the RBI have presented their respective positions in documents submitted to a government panel for consideration. Reuters indicated that the panel could finalize its report as early as June, following a thorough review of the proposals put forth by the regulatory bodies.
Turkey’s Draft Law on Crypto Assets
Furthermore, Turkey introduced a draft law that seeks to enhance oversight of crypto companies by imposing licensing and registration requirements. Under the proposed regulations, crypto exchanges and other related entities would be mandated to obtain licenses from Turkey’s Capital Markets Board.
The draft law outlines various obligations and responsibilities concerning platform management, the provision of services, and operational standards. It aims to regulate specific activities such as cryptocurrency transactions, purchases, sales, and transfers among individuals within Turkey, as well as the storage of digital assets.
If enacted, the law would empower the Capital Markets Board to establish secondary regulations and implement regulatory procedures to govern the operations of companies operating in the cryptocurrency space.
Stringent Cryptocurrency Policies in India and Turkey
Both India and Turkey have historically maintained strict stances on cryptocurrency regulations. In 2021, Turkey prohibited the use of digital currencies for payments, citing concerns related to the lack of regulatory oversight, involvement in illicit activities, instances of theft, and irreversible transactions.
In a similar vein, India’s Reserve Bank imposed a ban on financial institutions from dealing with entities involved in cryptocurrency transactions back in 2018. Although the measure was subsequently overturned, broader financial regulations have been enforced, with the RBI consistently advocating against the legalization of digital assets.
India has also adopted measures targeting foreign cryptocurrency exchanges, including issuing compliance notices and implementing IP bans on these platforms. Consequently, the recent developments from both India and Turkey signify a shift towards more comprehensive regulations that aim to accommodate cryptocurrency activities within the confines of their stringent regulatory frameworks.
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