The Indian cryptocurrency exchanges believe that the market regulator Securities and Exchange Board of India (SEBI) would be a suitable entity for regulating the industry.
The exchanges suggested the same to the government and told that cryptocurrencies are more like commodities and not currencies, therefore, they would prefer SEBI over the Reserve Bank of India (RBI), to regulate it.
The crypto trading platform also recommended a new entity for regulating the digital assets in the country.
“Every industry needs a healthy regulatory environment for sustainable growth and the crypto industry being a fairly new concept needs support from RBI and Sebi both. Under Sebi and RBI, a hybrid regulatory body can be created which will be responsible for regulating crypto exchange,” said the CEO of BuyUcoin Shivam Thakral.
Amid regulatory uncertainty, the banks have recently become cautious about transactions related to cryptocurrency, therefore, some of the banks have already cut their ties off with the crypto exchanges in the country.
As banks have started parting their ways from the cryptocurrency exchanges, the investors are suffering a lot. Since the past few weeks, private as well as the public bank are not processing the payment related to cryptocurrency, because of which the investors are not able to deposit or withdraw their money from the platform.
The central bank of India imposed a blanket ban on cryptocurrencies in 2018, but two years later, the Supreme Court of India quashed it.
A report presented recently suggests that the increasing price of Bitcoin is one of the main reasons more people got attracted towards digital currencies.