The Indian financial space has divergent views on cryptocurrencies that are regulated at the moment by either the Securities & Exchange Board of India (SEBI), that is showing interest in oversight or the Reserve Bank of India (RBI) that remains cautious. According to the recent reports, SEBI representatives propose to manage this trading sector with the contribution from other regulators, denoting changing mode of regulators’ outlook.
The root of this difference in opinion between SEBI and RBI can be traced back to a joint submission that some entities made to a panel which is planning to recommend policy to the finance minister. While SEBI emphasizes regulating crypto assets that are tied to fiat money, RBI continues to have worries more on the huge financial risks that are involved with private digital money.
Such a departure may seem to be a radical change as regards India’s past stance on crypto, which dates back to 2018 by the RBI that had mentioned financial institutions dealing with crypto users or exchanges. Nevertheless, the Supreme Court ruling failed to stop this perspective, which has resulted in debates about the possible ban of private cryptocurrency in India and the need for global regulatory norms.
SEBI‘s plan illustrates a complex regulation of cryptocurrencies, wherein different regulators are assigned to control over the domain of their activities. Thus, SEBI may act as an overseer for cryptocurrencies that have a close resemblance with securities and monitor the Initial Coin Offerings (ICOs), while regulators like the IRDAI and PFRDA could capture the registration, supervision and develop the markets of insurance and pension-related virtual assets.
And the RBI, at the same time, is strongly against the crypto activities which may interfere with the fiscal stability such as tax evasion, voluntary compliance in peer-to-peer activities, and loss of the state’s seigniorage income.
However, the operation of cryptocurrency trade in India remains affected by nuclear regulatory policies, which led to implementation of, for instance, a tax on crypto transactions in India and requirement for local registration by exchanges. While on the one hand, the absence of an overall invention regulatory framework is a problem for both investors and regulators themselves, on the other hand, it is.
While the cryptocurrency issue remains a serious concern for India, worldwide, global developments reveal a readiness to embrace cryptocurrencies, with almost 31 nations already having rules and regulations for cryptocurrency trading.
In conclusion, the SEBI’s and the RBI’s opposing opinions exhibit what is the most important question at present – crypto regulation in India. With policymakers wrought with dilemma, a regulatory framework must be struck that balances risks on one side and on the other – promote innovations.
Bybit Banned in France? What Does This Mean for Crypto Users?
AMF, the French Financial Market Authority, has executed action against Bybit crypto exchange by blocking access to its site in France because of the company’s operations that are considered unauthorized in France. The case reflects how crucial it is for cryptocurrency industry players to observe the regulatory requirements.
Through the eye of the AMF, Bybit is not seen as being licensed to operate digital assets in France, nor has it registered with the regulator as a regulation of Digital Assets Service Provider (DASP). Mandatory registration is compulsory to any trading platform for the public.
One of the AMF’s main concerns is that compulsory registration will be helpful in preserving public order through its action against money laundering and terrorism financing, and checking the honesty and efficiency of platforms’ representatives, as well as implementing measures to protect retail investors.
Without any proper registration record, it is considered that the company has violated the French laws. This caution from AMF comes after a similar action for cryptocurrency exchange Bitget, which was also caught operating DASP services without a proper license.
Bitget received the sanction of AMF in November 2023 for the infringement of French regulation as to the services related to digital assets. The AMF’s actions show that it has made up its mind to oversee the implementation of regulatory standards in the cryptocurrency sphere to safeguard investors and pave the way for a good order in the market.
The case of Bybit and Bitget is not exclusive, as other crypto exchanges are also participants in regulatory authorities’ attention. A few months ago, the French branch of Binance has been under inquiry, accused of the illicit supply of cryptocurrency and violation of AML requirements.
Nonetheless, regulatory compliance has proven to be a key element in the legal functioning of cryptocurrency exchanges which in turn empowers investors’ confidence. In a number of instances including Binance obtaining crypto service provider licenses from regulatory authorities may have good effect as it may meet regulatory concerns and adhere to local regulations.
As the cryptocurrency industry moves forward, regulators are expected to apply more stringent oversight resulting in exchanges being at the crossroads of complying with the tough standards in order to escape regulatory sanctions and to remain trusted by users.
Big News for Bitcoin! CME Group Reportedly Eyeing Spot Trading
On the issue of cryptocurrencies, Bitcoin, the leading one, once more dominates as reports are out that CME Group, a future exchange, intends to open its doors to spot Bitcoin trading. This happened after a sharp increase in the price of the crypto occurred a day after the inflation report missed expectations.
Sources familiar with the issue reveal CME Group’s plan to run a spot trading business through the EBS currency trading platform encountered in Switzerland. This platform gains its reputation by its stringent regulations that determine trading and depository of digital assets.
Although meetings have been held among CME and those traders who wish to trade cryptocurrencies via a regulated exchange, no agreement has been signed yet.
With the possibility of CME Group offering spot Bitcoin trading alongside its contracts trading, investors will have a chance to employ complex trading strategies using both spot and futures markets. Among these tactics is basic trading which involves selling futures along with purchasing contracts of the underlying physical assets as the market spread difference is exploited.
This news comes after Bitcoin’s sharp price rally of 7% percent after a lesser-than-expected consumer price index (CPI) figures was published. Such a scenario boosted the confidence that the inflationary concerns could eventually be settled. Hence, the interest rates could be further reduced. Bitcoin’s price tends to be volatile in relation to changes in interest rates since higher yields on safer assets like the U. S. Treasuries can drive investors into those assets from risky ones such as cryptocurrencies.
The technical analysis of Bitcoin shows that the price declined from a symmetrical triangle pattern which formed in late April and the price has since been unable to move upward. On Monday, the cryptocurrency closed above the vital 50-day moving average (MA) for the first time, a signal that might suggest a role reversal, favoring the bulls.
All in all, the possible launch of spot trading options by CME Group could extend the market’s liquidity and accessibility, ensuring investor’s sufficient opportunities for trading and investments.
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