Advertisement
Wednesday, Sep 22, 2021
Outlook.com
Outlook.com

Bitcoins Can't Be Ignored, Says SEBI Chairman Ajay Tyagi

Currently, bitcoins and any such crypto currencies, are not an approved product by the Reserve Bank or any other regulator.

Bitcoins Can't Be Ignored, Says SEBI Chairman Ajay Tyagi
| Representative Image
Bitcoins Can't Be Ignored, Says SEBI Chairman Ajay Tyagi
outlookindia.com
2017-12-20T17:55:29+05:30

Observing that bitcoins cannot be ignored, regulator Sebi chairman Ajay Tyagi today said the virtual currency so far has not posed any systemic and a government panel is looking into it.

Currently, bitcoins and any such crypto currencies, are not an approved product by the Reserve Bank or any other regulator.

"On the issue of bitcoins, government is looking into it in consultation with the RBI and Sebi. The panel, also consisting of finance and information technology ministries, is looking into what to do about it," Tyagi said at the financial markets summit organized by the industry lobby CII.

However, he said there should not be any regulatory oversights on blockchain technology saying this is a useful technology which should be encouraged.

"Blockchain technology that everyone uses and is useful, should not have regulatory oversight and that's something which needs to be encouraged and we are also encouraging it," he said.

Blockchain technology is used to deal in bitcoins and other crypto currencies.

It can be noted that regulators and government agencies are in a quandary as even taxing bitcoins will amount to giving a legal status and there is no consensus on this given the huge risks, including money laundering and terrorist financing, attached with such activities.

However, there is a kind of unanimity emerging about subjecting such trading to laws against black money, money laundering and frauds so that the interest of general public remains safeguarded.

A gravity-defying bitcoin rally to over Rs 10 lakh a unit, interspersed with 'stories' of people making crores from thousands, has left the regulators flummoxed.

The RBI has been issuing warnings since 2013, the first time when the surge in bitcoins caught the attention of Indians, but risks have multiplied manifold now in the wake of a significant spurt in the valuation of many such virtual currencies and a rapid growth in initial coin issuances.

Modelled on the initial public offers for issuance of new shares in the stock market, some entities have begun resorting to initial coin offers to raise funds from investors, including HNIs and other individuals, who are getting lured into claims of huge returns from bitcoins and other such variants--apparently getting minted in the digital world but also reaching the real world including as wedding gifts.

(PTI)

Advertisement

Outlook Newsletters

Advertisement

Read More from Outlook

Why PM Modi's US Visit Holds Key To India's Strategy On China, Afghanistan

Why PM Modi's US Visit Holds Key To India's Strategy On China, Afghanistan

Apart from in-person meetings with Joe Biden and Kamala Harris, PM Modi will address the UNGA and Quad summits and may share India's concerns on use of Afghanistan as a terror hub.

SAARC Summit Stands Cancelled As Pakistan Insists On Taliban's Participation

SAARC Summit Stands Cancelled As Pakistan Insists On Taliban's Participation

Lack of concurrence has been cited by the sources as the reason behind the cancellation as India along with some other members expressed dissent to the proposal.

Historical Blunders! KL Rahul Crestfallen After PBKS Gift Tie To RR

Historical Blunders! KL Rahul Crestfallen After PBKS Gift Tie To RR

KL Rahul said Punjab Kings 'haven't learnt from previous mistakes' after his team gifted the match to Rajasthan Royals.

SC Rejects Centre's Request To Postpone Women's Entry In NDA By One Year

SC Rejects Centre's Request To Postpone Women's Entry In NDA By One Year

The armed forces are the best response team to deal with emergency situations and it is hopeful that necessary arrangements will be made... without delay.

Advertisement