India’s Regulatory Agency SEBI Shows Very Hard Stance Toward Cryptocurrencies
India’s Regulatory Agencies Show Very Hard Stance Toward Cryptocurrencies
Amid a growing pressure on the cryptocurrency space in the country, the Securities and Exchange Board of India (SEBI) has responded 68 questions about cryptocurrencies. These questions have been presented by a legal agency that is located in New Delhi.
The response has been presented under the pretext of a Right-to-Information (RTI) act. In this way, citizens are able to request specific information to public authorities about specific issues. This is why Blockchain Lawyer filed an RTI application to SEBI trying to learn about crypto regulations in the country.
Varun Sethi, a legal counsellor at Blockchain Lawyer, said that SEBI did not provide any important information on the mater. Indeed, he explains that the SEBI cited confidentiality and most of the questions were unanswered.
The regulatory agency did not inform about its research data which could be used for crypto-related law in the future. SEBI informed that providing this information would harm the ‘decision-making process.’ The agency neither disclosed the results of the tour made by three officers to countries such as Switzerland and Japan. The SEBI wanted to analyse how crypto-friendly regulations operate in these countries. However, they did not give any useful information alleging that it may affect the interests of the securities market.
SEBI informed about the situation:
“Our primary thoughts are concerned with some claims in the reply. Like experts hired to speak, three officers sent abroad to understand blockchain, internal meeting in Oct 2017 about blockchain. But what is also concerning is lack of transparency in responses. Our next step shall be filing an appeal.”
The SEBI and the Reserve Bank of India (RBI) have taken different restrictive measures that have affected the whole cryptocurrency market. At the same time, the SEBI lacked transparency at the time of answering the questions related to the RTI.
Just some days ago, one of the largest exchange platforms in the country, Zebpay, halted its operations due to excessive regulations in the country. In the past, the government decided to warn banks and financial institutions about offering services to individuals and companies dealing with virtual currencies.