SEBI may be asked to regulate cryptocurrency trading in India as the government is planning to legalise investment in virtual currencies, The Economic Times reported on Wednesday citing sources.
However, the use of cryptocurrencies for payments and transactions may not be allowed.
Use of cryptocurrencies as currency for making payments may not be permitted but investors could be allowed to invest in them the way they do in shares, gold and bonds, the report stated.
Active promotion by crypto exchanges and other stakeholders to enrol more investors is also likely to be barred.
Further, the report mentioned that the cryptocurrency bill is still in works and is likely to be placed before the cabinet in the next two to three weeks. The bill is expected to be introduced in the Parliament in the Winter session.
Last week, Prime Minister Narendra Modi chaired a high-level meeting with officials from various ministries and RBI on the issue of cryptocurrency. A couple of days later, the Parliamentary Standing Committee on Finance held its first meeting with cryptocurrency stakeholders.
These developments come after several investors, experts and entities raised concerns over the unregulated investments and promotion of cryptocurrencies.
Last week, RBI governor expressed concerns over cryptocurrencies saying that they pose a threat to macroeconomic and financial stability.
