Crypto Decentralization Poses Challenges to Indian Regulators -Breaking
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Indian Crypto Decentralization presents challenges to Indian regulators- SEBI stated that the centralization of cryptocurrency makes it difficult to enact regulations for digital assets.
- Crypto transactions should be under the control of law to prevent AML or terrorism financing, according to market regulator.
- SEBI (Secure Bank of India) and the Reserve Bank of India, (RBI), are two of India’s leading regulators of financial activity.
One of India’s regulators, the Securities and Exchange Board of India(SEBI), expressed concerns over consumer protection and enforcement of cryptocurrency regulations.
The decentralized nature and use of crypto currencies poses significant challenges to the adoption of digital asset regulation laws.
The statements were made by SEBI while speaking before the Parliamentary Standing Committee on Finance on Monday June 6. The statement was made by SEBI while speaking to the Parliamentary Standing Committee on Finance Monday, June 6.
The digital currency serves as an intermediary between Indian rupee and foreign fiat currencies. The regulatory oversight of crypto trading platforms could include the provision of AML/CFT/ KYC reporting. This can be achieved by registering the entities as authorized dealers or money changers.
While the topic of Indian crypto regulation has been debated for some time, there is no proposal for an outright ban on trading cryptocurrency. A new law requires crypto investors to pay a 30% tax for profits from cryptocurrency, as well as NFT and mining rewards.
The Reserve Bank of India (RBI), in an annual report, stated that they were evaluating the pros and cons of the central bank’s digital currency (CBDC).
CBDC, an alternative cryptocurrency to crypto, will serve as legal tender and have all the features of fiat currency.
India’s leading regulators of finance activities are the SEBI (Secure Bank of India) and RBI (Reserve Bank of India).
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