It was made known thanks to the annual report 2017-2018 of the Securities and Exchange Board of India that the government of that country sent officials to Japan, United Kingdom and Switzerland to learn about the regulations they had in these countries for crypto currencies and ICO. The goal India is setting out to achieve greater engagement with international regulators and expand understanding of how cryptomarket systems work to improve what’s inside.
According to the report, the practice of visiting other regulators is very common in India since, as they themselves say, “they have benefited greatly from these experiences and the transfer of knowledge helps to improve the processes within SEBI”.
As also stated in the report, the regulator explained in detail that: “it organized study visits to the Financial Services Agency (FSA) of Japan, the Financial Conduct Authority (FCA) of the United Kingdom and the Financial Market Supervisory Authority of Switzerland (FINMA) of Switzerland to study initial offers of coins and crypto coins”.
The Central Bank of India also has its eye on crypto currencies
In India we not only have the SEBI guarding the cryptomedas, the Reserve Bank of India (RBI), which is the Central Bank of the Asian country, is also feeding on what other jurisdictions establish on the cryptomedas.
RBI’s 2017-2018 Annual Report stated that “Globally, regulatory responses to crypto currency have been undergoing complete repression in some jurisdictions to a comparatively “light” regulatory approach (…) Japan and South Korea account for most of the world’s cryptographic asset markets”.
Later in the same report the RBI stated that they continue to monitor the global market for crypto coins and has reiterated its ban on national banks providing services to companies that link to Blockchain technology.
This position has caused the Exchanges and other companies linked to the media to decide to open their offices in other countries that are more open to the issue of crypto currencies. For example Crydelta, one of the Exchanges with the largest market in India, decided to register its headquarters outside Indian territory.
Legal regulation for crypto coins in India
The Indian government is currently working on the legal regulation of the cryptomoney market. The Department of Economic Affairs of the Indian Parliament states that the regulations of this market will probably be ready by the end of 2018. This implies a certain delay since the special panel for the drafting of laws was set as a goal to have the laws ready by June.
At the same time as the work in the parliament, the Indian Supreme Court is carrying out the judicial process through which the Exchanges and companies linked to Blockchain are fighting against the ban imposed by the Central Bank. Their petitions are expected to be heard on September 11. The Indian cryptomime market is being very optimistic and they hope that with this audience very positive things will be achieved for the whole Indian Blockchain industry.