SEBI may regulate bitcoin market in India
Securities and Exchange Board of India (SEBI), the market regulator, is proposing to create a framework to regulate the country’s bitcoin market. News reports suggested that SEBI’s Committee on Financial and Regulatory Technologies (CFRT) has found it necessary to regulate bitcoin transactions to ensure that India’s public issue norms are not breached. The committee intends to ensure that bitcoins, its derivatives, or any other cryptocurrency are not being used as a medium for funding illegal activities and no entity is able to divert black money through the virtual currency market. The committee fears that through bitcoin exchanges, several entities may be potentially flouting private placement norms by collecting money from more than 200 random individuals. SEBI is aware of the existence of several websites and mobile apps, which act as bitcoin exchanges for transacting in goods and services.