India’s securities watchdog calls for crypto regulation; Turkey moves toward licensing model

Turkey and India advanced crypto policies on May 16 that could create a framework for businesses and investors operating in each country.

Reuters reported that the Securities and Exchange Board of India (SEBI) wants multiple regulators to oversee crypto trading in the country.

In its recommendation, SEBI said it could monitor crypto securities, oversee initial coin offerings (ICOs), and issue licenses for equity market-related products.

Other agencies could regulate insurance and pension-related virtual assets, while the Reserve Bank of India (RBI) would regulate fiat-backed cryptos.

SEBI’s request is at odds with RBI’s position. The bank believes that private digital currencies are a macroeconomic risk. It expressed concerns about tax evasion, the need for voluntary compliance in P2P activities, and reduced profits from central bank money creation.

SEBI and RBI outlined their position in documents submitted to a government panel for consideration, which Reuters said could “firm up its report as early as June.”

Turkey’s draft law

Reuters also reported that Turkey’s ruling party presented a draft law that aims to have crypto companies meet licensing and registration obligations.

If the proposed regulations succeed, crypto exchanges and other companies must obtain licenses from Turkey’s Capital Markets Board.

The draft law outlines requirements and liabilities regarding platform management, offerable services, and operational standards. It aims to regulate certain activities, including crypto purchases, sales, and transfers among individuals in Turkey and crypto storage.

The law would also grant the Capital Markets Board authority to advance secondary regulation and create regulatory procedures for companies and their transactions.

Strict crypto stances

India and Turkey both have strict crypto policies.

In 2021, Turkey banned the use of crypto in payments, listing a lack of regulatory controls, use in illegal activities, theft, and irreversible transactions among its concerns.

In 2018, India’s Reserve Bank banned financial institutions from engaging with companies that work with crypto. Though the rule was later overturned, broader financial regulations apply, and the Reserve Bank continues to urge against legalization.

India has also taken other actions against crypto, including issuing compliance notices to foreign crypto exchanges and imposing IP bans on the exchanges.

Accordingly, each of the latest developments advances regulations that could accommodate crypto activities in countries known for their harsh policies.