Turkey and India developed a crypto policy on May 16 that could create a framework for companies 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 stock market-related products.
Other bodies could regulate insurance and pension-related virtual assets, while the Reserve Bank of India (RBI) would regulate fiat-backed cryptos.
SEBI’s request is contrary to RBI’s position. The bank believes that private digital currencies pose a macroeconomic risk. Concerns were raised about tax evasion, the need for voluntary compliance with P2P activities and the reduced profits from the central bank’s money creation.
SEBI and RBI set out their position in documents submitted to a government panel for consideration, which Reuters reported “could solidify their report as early as June.”
The Turkish bill
Reuters also reported that Turkey’s ruling party has presented a draft law that aims to make crypto companies comply with licensing and registration requirements.
If the proposed regulations are successful, crypto exchanges and other companies will need to obtain licenses from Turkey’s Capital Markets Board.
The bill outlines the requirements and liabilities related to platform management, services offered and operational standards. It aims to regulate certain activities, including the purchase, sale and transfer of cryptocurrencies between individuals in Turkey and the storage of cryptocurrencies.
The law would also give the Capital Markets Board the authority to promote secondary regulation and create regulatory processes 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, citing a lack of regulatory controls, use in illegal activities, theft and irreversible transactions among its concerns.
In 2018, the Indian Reserve Bank banned financial institutions from working with companies working with crypto. Although the rule was later reversed, broader financial rules apply and the Reserve Bank continues to push for legalization.
India has also taken other measures against crypto, including issuing compliance notices to foreign crypto exchanges and imposing IP bans on the exchanges.
Accordingly, each of the latest developments promotes regulations that could accommodate crypto activities in countries known for their harsh policies.