Crypto Assets! Who will Regulate SEBI or RBI?

Top crypto exchanges have conveyed to the government in recent interactions that capital markets regulator SEBI is better suited to regular rate the sector then the  RBI.  As crypto assets are closer to commodities than to currency they claim that crypto assets such as bitcoin are not currencies and should not be regulated by the RBI the exchanges have asked for a new regulator for cryptocurrency’s. Recently the central bank has asked Bank to stop allowing consumer to trade in the crypto assets

This according to experts could lead to legal tassels if the bank stops allowing consumers to trade in cryptocurrency is following an RBI directive it could again be challenged in court of law it will make sense to have a regulatory body like SEBI govern the functions of crypto platform. 

Where for tax purposes or otherwise there is no clarity as to whether crypto assets or currency commodity service or closer to equity this will entirely depend on how the government plan to utilize the cryptocurrency and Blockchain industry but the earliest way to regulate it currently would be classify it under SEBI as their norms do align in someway with crypto.

Cryptocurrency exchanges had also reached out to the government and sought clear regulations for controlling and taxing crypto assets even suggesting that instead of complete ban the government should club them under highest tax bracket defining the crypto assets has also been one of the biggest challenge for government including India

legal experts say that since crypto assets are not owned or backed by a state government or a group of countries they cannot be called currencies the closest they come to is GOLD a category in which people can invest in trade. S-ET

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