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Cryptocurrency's decentralized nature makes governance difficult: Indian Regulator

Cryptocurrency's dec

Cryptocurrency's decentralized nature makes governance difficult:

 Indian Regulator

The Securities and Exchange Board of India (SEBI), India's market regulator, claims that the decentralized structure of crypto assets makes consumer protection and enforcement mechanisms difficult.
According to reports, the Securities and Exchange Board of India warned Parliament's Standing Committee on Finance that the decentralized structure of crypto assets makes consumer safeguarding and administrative enforcement challenging.
SEBI was reported in local media as saying: "There is a high chance of execution of illicit trades not in accordance with any regulatory framework," noting that "crypto-assets are held in decentralized distributed ledgers."
The market regulator stressed the need of determining whether crypto assets are securities. "If crypto assets are not outlawed, then a feature-based definition of the tokenized versions of the assets is required, which may attract the attention of various sectors authorities," SEBI stated.
The regulator noted that there might be more than one cryptocurrency regulator, with multiple authorities overseeing different elements of the industry.
The Consumer Protection Act, according to SEBI, should safeguard consumer items. Under the Foreign Exchange Management Act, the RBI might possibly oversee crypto trading sites. " A digital currency works as a gateway between a foreign jurisdiction's fiat currency and the Indian rupee," according to SEBI.
SEBI-regulated stock exchanges are unable to trade crypto assets until they are certified securities, according to the market regulator. "A stock exchange can only serve for 'assisting, supervising, or managing the activity of buying, selling, or trading securities," according to Section 2(j) of the Securities Contracts (Regulation) Act (SCRA), 1956.
The SEBI has also suggested to the Advertising Standards Council of India a number of steps. SEBI suggested barring celebrities and public figures from marketing cryptocurrency items last month.
While cryptocurrency income and transactions are taxed in India, the country's government has yet to establish a legal framework for cryptocurrency assets.
On crypto rules, authorities from the Finance Ministry have been talking with the World Bank and the International Monetary Fund (IMF). According to the country's finance minister, the government will not rush to establish a crypto policy. And as CoinGabbar earlier reported that India's economic affairs secretary stated that the government's consultation document on cryptocurrencies is "pretty ready."
Coin Gabbar has always been of the opinion that there should be specified laws for the governance of any investment option because Investor Protection will always be a cause of concern for any thriving Investment Market.


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