Crypto currencies such as Bitcoin is on the radar of capital markets regulator SEBI. Observing that Bitcoins were not a systemic risk to India, SEBI Chairman Ajay Tyagi on Wednesday said that the regulator was in a process of determining the legal oversight for crypto currencies.
Tyagi, who was speaking at a financial markets summit organised by industry lobby group CII in Mumbai, said, SEBI along with officials from the Ministry of Finance, Ministry of Electronics and Information Technology and the RBI is on a panel tasked with determining the legal oversight for crypto currencies.
“On the issue of Bitcoins, the government is in consultation with SEBI and RBI. Bitcoin may not be a systemic risk in India but there has to be a law to take action,” Tyagi said.
Bitcoins trading exchanges are operating in a regulatory vacuum in India, and as in other countries India too is studying various ways of regulating crypto currencies. While the recent sharp upmove in Bitcoin price has led to euphoria among investors, it has stoked regulatory concerns as many experts see it as a speculative bubble.
Earlier this month, income tax officials conducted a survey on Bitcoin trading exchanges in India. The RBI has been issuing warnings against excess speculation in Bitcoins since 2013.
Bitcoin offerings in India are taking on the looks of IPOs in the share market, with a few entities kicking off initial coin offerings to raise funds.